Merchandise

For China, how to get more interest from the merchandise trade?

How to do to upgrading or product upgrades?

Name: Macarena Bustos.
Mayor: Master Chinese Economy.
China’s Foreign Trade Issues.

Date: 17 Dec, 2010.

INDEX

• Introduction 3
• Merchandise trade, brief definition. 4
• China’s High-tech Industry in the International Division of Labor and Its IndustrialUpgrading Strategies: A Case Study of the Integrated Circuit (IC) Industry. 5
• The Value Chain and Industrial Upgrade in IC industry 6
• International Transfer of the IC Industry 7
• The IC Industry in China 9
• The Position of Chinese IC Industry in the International Division of Labor 10
• Conclusion 11
• Reference 12Introduction

China has become very strong in the latest years in the world. In this paper I analyze different aspects regarding merchandise trade and how to upgrade products in China. To understand, this paper make focus on 2 questions as follow:
For China, how to get more interest from the merchandise trade? And
How to do to upgrading or product upgrades?

To answer it, first I talk about themerchandise trade, what means, how it work, what about China and others countries comparison, as well. China surplus on merchandise trade is a big issue today in the economic world particularly with US.

The merchandise surplus trade in China is great for the economic growth, but also must to be together with a good performance regarding the efficiency on trade products and services.

Theeconomic growth in China must to achieve how to do upgrading on the product and service, here in this paper you can realize how to do it, with a case of study in the Industrial Upgrade in Integrated Circuit industry, this is regarding technology, software, machines, production process, how to improve the production line and how to increase the value in this Industry.

With the accelerateddevelopment of economic globalization since the 1990s, the high-tech industry has also evolved from an industry concentrated in a few developed countries into a global production network with clear international division of labor for different countries.

Merchandise Trade

The merchandise trade also called the balance on goods trade, has different meanings a definition is as follow:”Goods which addor subtract from the stock of material resources of a country by imports or exports its economic territory”, is the difference between the total value of exports and the total value of imports in one country.

The merchandise trade for example in US has been in a deficit position since the 1970s. This means that the total value of imported goods has been greater than the total value of exportedgoods. This means the U.S. is a “debtor” nation, running a merchandise trade deficit. By the other hand China have a merchandise trade surplus, the exports are greater than the imports.
In this regard, it is important to note that about half of the U.S. trade deficit today is with only two countries, Japan and China.

Anyways, with the fast economic growth in China, also need to be preparingto develop better tools to achieve great products and services, and upgrading products in the production process, in this case regarding to the Integrated Circuit Industry in China.

Forward is the explanation in detail about the China’s High-tech Industry, in the International Division of Labor and Its Industrial Upgrading Strategies: A Case Study of the Integrated Circuit (IC) Industry.China’s High-tech Industry in the International Division of Labor and Its Industrial Upgrading Strategies: A Case Study of the Integrated Circuit (IC) Industry
There are a large number of recent research papers on international trade focus on the phenomenon of international production fragmentation, often also called the global supply chain. For example, when a firm considers outsourcing, part of...