International Marketing Management Research Paper

International Marketing Management - Research Paper Example International Marketing Management The purpose of this paper is to understand the trading simplex between United States and China, the country of choice for this paper. The idea is to define the scenario as it stands i.e. the historical facts and figures with regards to the trading activities between the two countries, and then try to identify the reasons that the said patterns have been ascertained. The process followed for the creation of this research paper was simple; primarily the figures relevant to the trading activities were ascertained and subsequently secondary sources of literature review were perused in order to understand the reasons behind the said patterns. Most of the literature review is secondary and the trading figures are availed from both the people’s republic of China and the USA.From the Figure given below, with either belong to the Chinese or the US, the US runs a trade deficit with the Chinese, however, there is a marked difference between the two figures that are reported by each count ry as the Chinese report a trade surplus of $114 billion in 2005 whereas the United States state that this figure is $201 billion, about 76.32% times higher than the one reported by their Chinese counterparts.There is also a marked disparity between the span of time which has seen the US report a trade deficit against the Chinese as they claim it to be since 1983 whereas the Chinese only report the trade surplus to have originated from 1993 onwards. It is also important to note that not only is the size of the trade deficit that is being run by the U.S. against the Chinese exorbitant, but there is another facet that is equally important in the grander analysis i.e. the inordinate imbalance that lies between the imports from China and the exports to China by the US. Taking 2005 as the base year, the Japanese exported about 0.4 times the amount that they exported to the US while the Canadians and the Mexicans also reported figures of 1.3 times and 1.4 times respectively. As compared t o these, the Chinese exported a whopping 5.8 times the value of goods to the US as compared to the value of goods that they imported making it abundantly clear that the Chinese is not a destination of choice for US exported products. (Lum et al, 2007) Figure 1: U.S. Exports to China From the table 1 given below, it can be seen that from the top twenty exports from the US to the Chinese in 2005, the items rated the top five include (in no specific order) transport equipment, metalliferous ores, general industrial machinery, electrical machinery and oil seeds and fruits. The exports of the oil seeds and fruits and metalliferous ores have expanded over a period of six years, beginning from 1999, by 6 times and 12 times respectively. This clearly indicates that the Chinese requirement for the agricultural commodities as well as the raw materials has expanded in line with that of the need for office machines and general industrial machinery. Over the span of the five years starting from 2000 to 2005, textile fibers has expanded the most amongst all the items exported from the US to China, having supplanted itself by about 969%. China’s top ten imports from all around the world (in no particular order) in 2005 were: organic chemicals, optical and medical instruments, mineral fuels, vehicles, iron ores, copper articles, plastics, iron and steel, machinery, and electrical machinery. (Lum et al, 2007) U.S. Imports from China From the Figure given below, it can be seen that from the list of the top 20 items that are imported by the US from the Chinese, in dollar amount, in no particular order include: Miscellaneous manufactured articles Furniture and bedding Electrical machinery Telecommunications and sound equipment Apparel and accessories Office machines and automatic data processing machines It is a significant fact to note that the value of the US imported item under the umbrella of office and data processing m