China's economic impact on Bolivia Essay Example | Topics and Well Written Essays - 2000 words

Chinas economic impact on Bolivia - Essay ExampleBolivia is Latin Americas poorest nation, while China is considered by many to be the second richest nation in the world. It is not considered unusual for China to exert its economical might in ensuring that it gets more profit from its wiliness sexual intercourses with a poorer nation moreover, the level of counterfeit China-made products flooding Bolivias market have made the trade arrangement a weight that is smart the Bolivian markets.Policies in China that do not Curb CounterfeitingThe competition brought by counterfeit Chinese products has served to impoverish the Bolivian economy whose products atomic number 18 simply able to compete in the local economy, let alone the international market. The production of counterfeit products is nothing new. Every nation on earth has companies or firms that produce counterfeit products. Moreover, most nations do not product them at the rate and quantity that China does. This is made wors e by the fact that the merchandise rules used by the Chinese government actually support the export of counterfeit products. China has always had huge local, individual, and state streams of revenue that come from knock-off products. In order to comply with the newly instituted rules of the World Trade Organization, China made alterations to its foreign trade rules in 2003 so as to do away with the get wind that government-owned trading corporations had on all exports. Prior to this, all of the countrys exports had to go through state-owned firms.This means that counterfeit product firms had to pass through state-approved brokers and distributors to tolerate their fake goods into the international market.... There are other factors that contributed to the explosion of counterfeiting practice in China. These include the ease of technology transfer, and relaxed foreign trade regulations. There are also local factors such as the lack of enforcement of the law when Chinese companies produce counterfeits, an economic explosion experienced in small communities, and the existence of organised crime syndicates that deal in the counterfeits (Zhonghua Press 29). Organized crime syndicates play a major role in ensuring that counterfeit products reach international markets. The charge of the internet has also served to further develop the production of counterfeit products. Many people today, particularly those who have extra money to spend on lowly needs, often shop on the internet. Counterfeit products usually sell for much less than authentic products. This means that consumers from different parts of the globe can take to purchase cheap products from China through the internet. This fact alone has been one of the main reasons for the explosion of the counterfeiting industry in China. In a sense, Chinas advantage lies in the fact that its production sector is quite colossal and is also highly mechanized. Chinas currency is also undervalued in relation to the dol lar and it has readily available access to cheap labor. This makes China much stronger than a nation such as Bolivia whose manufacturing sector is much smaller in size. Bolivia also experiences political unrest on a much more common basis than China and its trade deficit with China keeps growing. This makes it easy for Chinese counterfeit products to flood the Bolivian market. However, it