THE EFFECT OF INTERNATIONAL TRADE ON THE ECONOMY OF SHANGHAI Essay

THE EFFECT OF INTERNATIONAL TRADE ON THE ECONOMY OF SHANGHAI - Essay Example There has been a positive influence On the GDP of Shanghai and the average growth rate is reported to be in double-digits. The per capita income has also been growing steadily and constantly. The city has developed at an amazing speed and special economic zones and commercial areas have been set up to attract more FDI (Foreign Direct Investment). There are some negative aspects of international trade as well such as environmental problems and greater reliance on international trade and investment. China, the most populous country in the world, has made rapid economic progress in the last couple of decades. The economic progress is largely due to economic reforms and open door policies introduced in 1978 which paved the way for the entry of foreign enterprises and international trade. On a broader perspective, international trade has had a tremendous effect on China. It has expanded the country’s growth and prompted China to target the whole world as a market for its products. Boyer (1998) noted that the rapid development came about due to various factors, including an expansive skilled labor, stability in the political system and a wide range of natural resources. In fact, because of the abundant supply of skilled and semi-skilled labor, China is often referred to as the â€Å"Workshop of the World† (Cui 2007). The reason that China has been selected for this case study is because its international economy has been introduced to the market so late yet, and still it has been able to surpass others who had an earlier presence in the market economy. Since China is a big and expansive country, which will be a challenge in carrying out the research and getting clear results, the paper narrows down its focusto Shanghai, which is the largest city in China. Shanghai has been chosen because it is considered the biggest centre for trade in China and it can well be