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Advantages for Chinese Companies in Globalization

Autor:   •  April 2, 2011  •  Essay  •  286 Words (2 Pages)  •  2,230 Views

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It is undeniable that there are some advantages for Chinese companies in globalization. First and foremost, globalization can bring more opportunity and profit to Chinese companies. Globalization can bring benefits to one country not only in absolute advantages but also in absolute disadvantage. There is a good example to explain it. In the first country, there are product A and product B, and they both have absolute advantages, but product A is less benefit than product B. Nevertheless, in the second country, product A and product B both have absolute disadvantage, and product A is more harm than product B. So, if these two countries make a trade, they will both get profits. The first country can import product A from second country in low cost, and the first country can produce and export product B to second country, the second country vice versa. For China, our absolute advantage in some parts, such as rich natural resource and cheap labour force, etc. Due to globalization, China can introduce advance technology from foreign countries and increase the volume of export. What' more, globalization promote the development of Chinese companies, and increase the competition of Chinese companies all over the world. Globalization can bring international production and advanced technology, and it can increase the competition of Chinese companies with other developed countries' companies, such as, Lenovo and Haier. Last but not least, globalization can help for circulating necessary funds. Globalization could provide developing country more conditions and opportunities that attract more multi-national companies. This way can solve the problem that Chinese government funds shortage. Chinese companies could invest to the others easily because globalization creates some useful outdoor environment and condition, and Chinese companies can extend the scale.

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