In the past 40 years, International trade
had bought
innumerable jobs and foreign exchanges to China. It seems that workers and
merchants became rich. But is that true?
Foreign trade can benefit China to some
degree. On the one hand, the most fundamental purpose of the foreign trade is earning profit. The
more surplus is, the more profit is. Surplus
Shows that the country's
foreign trade is in a dominant position. On the other hand, foreign trade also benefits the growth of the national economy. The trade surplus is conducive to
maintaining the balance of the total economy, to avoid the tightening of fiscal deficit, to maintain rapid economic
growth.
However, for my perspective, trade surplus
didn’t make our life better. The long-term trade surplus brought a lot of money. But my point is that the total social labor is constant.
Which means the total amount of consumer products is limited. Therefore, the trade surplus of funds will only cause inflation. Wealthy is just an illusion. Still
there is no difference because unit labor time brings same amount of wealth. I admit we can use cash to consume abroad. But such
a small part of the consumer brings little influence to the whole
economy.
http://www.03964.com/read/691332760805ce65b28e1ee9.htmlPlease use Google translator to read.
I agree with you . The point is we need to continue to explore solutions to achieve a balance of trade between countries. US-China bilateral trade imbalance is one of the reasons that caused the current economic crisis
ReplyDeleteI think that trade makes the consumers lives better who are importing goods from China because they are able to purchase goods for such low prices. However, the workers in China are working for such low wages that they are not getting much out of it and its not making their lives better. The low prices and low wages are also why China has such a large trade surplus.
ReplyDeleteIn theory trade should increase the overall standard of living. The more free trade an economy has the more possible it is for people to rise in the economic ladder. I think there aren't a lot of goods to buy in China is to have a lot of cheap capital in order to have the enormous growth it is currently having. It will take a decade or two for China to have US salaries as it will need to invest in technologies and move on to producing products and services that arent so cheap to produce.
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