International Trade: Effect of Liberalization

There are about forty thousand multinationalexchange of technologies between China and other
companies operating world wide and almost 200,000countries, it has now become easy for companies to
overseas joint ventures that run across theget access to new technologies. With the changing
continents. Many of these collaborations and jointliberalization policies in the whole world including China,
ventures have concerns, directly or indirectly, witha good number of companies are garnering benefits
China business enterprises. The access to Chinafrom international trade and investments. From
through world-wide international trade investments isexpansion point of view many multinational companies
increasing day by day.in China are increasing their level of work so that
Moreover, due to globalization the extent to whichthey can gain maximum share of international trade
China's international trade and investments bears anand investments. These corporations are also busy in
impact is very wide. It is due to globalization that theincreasing the goodwill of their brand name and are
international market has a direct approach to acquirecontinuously striving to make their presence felt in
modern technology and consequently reduce theinternational trade. On account of increasing
problems of distribution and stumpy internalcompetitiveness in international market, multinational
coordination expenses. It has opened the doors forcorporations are paying sufficient heed to provide
the specialization of network services and productsquality work at low price.
with collective support of companies. BusinessAs such they are investing on reasonable price raw
process outsourcing for both internal activities andmaterials and labor. However the main reason for all
external activities is the result of globalization ofthese activities is to get access to a wider market.
international trade and global investments. BusinessAlthough there are some drawbacks of expansion of
process outsourcing is the common concept in theinternational trade and investments but if rules of
entire world and China is one of the leading countriesinternational trade are followed then the problems
that provide such services. For quality work andcan be minimized and properly handled. The big size
performance the outsourcing companies often selectof the Chinese market is a major attraction to many
China as their business collaborators.prospective new entrants in international trade and
With the increasing ratio of communication andinvestments.