Articles Review: International Business (Essay Sample)

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Articles Review- International Business
United States has enjoyed a fair share of the title of number one economy in the world but recently China has been reported to take over the title from them. According to the International Monetary Fund (IMF), China is projected to produce 17.6 trillion dollars worth of goods and services compared to the significantly lower 17.4 trillion to be produced by U.S. (Fox, 2014). The rise to the top position is worth noting because more than a decade ago the United States produced three times as much as China—according to Dow Jones Market Watch.
This article is relevant to international business because it sheds light into foreign exchange. Specifically, the article focuses on the scales used to measure the economy of countries. China has been seen to rise through almost fourteen years. From the rise into power, China is compared to U.S. in terms of purchasing power parity, currency and GDP per head. These three factors have been taken into consideration in the classification and ranking of the two countries. The ranking strategy is not only used for the two but is an international business convention.
Similarly, from the ports of Long Beach Island it is evident that global connection is on its conception. This is because apart from China, the U.S would be connected to the vast Latin American coasts through the port on long Beach. Globalizing the U.S port will means an increased level of trade between the countries. Other than airports and road-which are used for exchange internationally, ports will reduce traffic in almost all the mediums of transport. In the same way the NAFTA projects article show that the company international relations may be on the decrease. It is a company looking to expand its resources. This means that the market share strategies and stocks for international expansion. As an international business strategy for NAFTA increasing its market scope.
The article on the sales of chicken in South Africa is profoundly international. Using foreign exchanges of perishable products requires discipline and resources. South Africa’s trade with meat chicken is said to employ almost three percent of the country’s population (Roth, 2015). International business requires relations and compromises on some parts. The article explain the rejection of South Africa to American poultry. The concern is that South Africa, although trading with the United States in wines and auto mobiles, South Africa is rejecting meat poultry as the country’s export. It is concern in international business because United States has extended several trading exceptions to Africa. The move on South Africa’s part seems to be justified because of the increased poultry in the country. However, the United States is insulted by the rejection there could be implications on the foreign exchange between these countries.
Since China and United States have different currencies, a common currency is used to compare the two. International business deals with foreign exchange. Forex compares the strength of different currencies against others. Thus in the presentation of data relevant to the IMF, the use of a common denominator is important. Although there are several ways for conversion, international conventions dictate ways to manage the results. The article’s focus on international currency comparison is relevant to international business. It gives an understanding of common ground used to determine and set goal of competition on an international-country scale.
Understanding the purchasing power parity is important in analyzing data from different countries. The article reports that the purchasing power of U.S. dollar has maintained its strength. Comparing different world currencies to the purchasing values compared to other currencies puts the U.S. dollar lower than China. However, on the basis of per head analysis, China has people earning less than America, on the basis of w...