Answer the questions at the back of each chapter Coursework

Answer the questions at the back of each chapter - Coursework Example (a) The world trading system would be greatly affected by the growth of Chinese economy. China is one of the largest exporters in the world. Every big company is producing its products in China due to cheap factors of production available in China. So that is why in future more and more companies would install their plants and factories in China. The balance of trade in the world would disturb due to the growth of China, because Chinese products are less expensive and people would prefer to use Chinese products. But on the other hand this increasing bubble of Chinese trade can burst if China ignores the demand and supply dynamics of the world market. (b) The world monetary system would definitely get disturb due to rapid increase in the Chinese economy. Due to increasing trade with other countries, the wealth of Chinese companies would increase and accumulate in China. This increasing wealth will where provide China plenty of investments but it would leave the world short of wealth and investment. The world monetary system can suffer a lot if not dealt with proper care. (c) The business strategies of European and the US corporations are in line with the growth prospects of China. These corporations are manufacturing in China due to less expensive factors of productions thereby increasing their profit margins. More and more companies would shift to China in the future due to rapid increase of trade of China with other countries. (d) Global commodity prices would also suffer due to the rapid growth in the trade of China with other countries. The prices of global commodities would increase due to their increasing need in China and similar countries. You are working for a company that is considering investing in a foreign country. Investing in countries with different traditions is an important element of your company’s long-term strategic goals. As such, management has requested a report regarding the attractiveness of alternative countries based on