International Business World Trading System

Question: Discuss about the International Businessfor World Trading System. Answer: Introduction During the year 2010, China was considered as the second largest economy in the world, taking the position of Japan in the world economy. The country has been able to stabilise and grow its position among the top economies in the world and has been foresee to be the worlds largest economy by the end of the year 2020. The economy has shown sharp developments that have helped the economy in generating high rate of growth and facilitates their pace of improving the conditions. Various implications are associated with China being the worlds largest economy in the future, which are discussed as follows: World trading system: China would stabilise in becoming the centre for the global production network. China would overtake the United States global market that would rise the influence of the country, thereby making the Chinese political influences more powerful (Carter Mol, 2013). World monetary system: Chinas reminbi would be a more powerful currency in the world rather than the dollar of United States. A shift among the investors would be noticed in the market that would account for a loss to the big economies of the world. Business strategy: the business strategies of the European and United States global corporations would be engrossed n analysing methods of increasing their ties with China. They would facilitate their production output to flow towards the acquisitions from China based companies. Global commodity prices: there would be sharp fall in the global commodity prices when China would come into power (Rodrik, 2014). This would hurt most of the large economies that would have traded their products at a much higher rate. Reference Carter, N., Mol, A. P. (2013).Environmental governance in China. Routledge. Rodrik, D. (2014). The past, present, and future of economic growth.Challenge,57(3), 5-39.