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Case Code: CLIBE005
Case Length: 2 pages 
Period: --  
Pub Date: 2005
Teaching Note: Not Available
Subject :Business Environment
Price:Rs.50
Organization :--
Industry :--
Countries : --

China-The Destination for FDIs*

 

ABSTRACT

The caselet discusses the declining phase in the Japanese economy. It also talks about the measures taken by the government to overcome the crisis of increased debts and explains the decline in government revenues due to tax cuts.
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Issues:

  • The emergence of China as one of the top five trading nations.
  • The benefit of MFN status to China.
  • How can China benefit from being a member of the WTO.
Introduction
In the last two decades, China has experienced rapid growth in foreign trade and investment. China's entry into the WTO further strengthened this growth and the country is fast transforming itself into a market-based economy.

China is one of the world's leading exporters, and also the biggest single destination for foreign investment among developing countries. It is likely to play a major role in the coming multinational trade negotiations. China is fast lifting its trade barriers.

Other members of the WTO are trying to get a share of sectors which were previously restricted in China, including telecommunications, banking and insurance.....
Questions
1. Discuss the impact of China's entry into WTO on India.

2.What are the advantages and disadvantages for China of being a member of WTO?

Keywords

Market-based economy, MFN (most favored nation) status, trade barriers, WTO, foreign trade, Chinese economy



* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.