Chinas Economic Analysis Free Essay Example, 2500 words

This paper illustrates that in the modern era, it has become a policy response of the governments to try to maintain a stable and attractive currency with regard to foreign trades. Several nations, China included have adopted measures that have been aimed at preserving the trade surplus and maintaining a positive balance of payments. These nations have thus tended to provide protection for their domestic products foreign competition. This protection includes a set of policies normally aimed at protecting a nation s industry products from foreign competition. These policies have included among imposing of quotas, tariffs, and embargos. A tariff is a tax usually imposed on goods imported from a foreign country; this tax helps in raising the prices of such goods hence making them less attractive in the local markets. A quota, on the other hand, represents a limit placed usually on the amount of a specific good that is allowed into the local market; this helps in protecting the indige nous products from being phased out from the markets by the foreign products. An embargo is a policy statement completely prohibiting the importation of a particular good into a country. We will write a custom essay sample on China's Economic Analysis or any topic specifically for you Only $17.96 $11.86/page In the recent developments, however, The Chinese State Council has been able to approve fewer trade restrictions and adjust particular administrative measures regarding foreign investments in some industries like that of Shipping, Civil Aviation, Automobiles and infrastructural development in the Shanghai Pilot Free Trade Zone.