Economic System and Commercial Trade Essay examples

Submitted By stephaniehu
Words: 1364
Pages: 6

The research of East Asian commercial trade transition in recent 30 years
Based on china Korea and Japan

Stephanie Hu

1. Introduction
2. China’s commercial trade transition
3. Comparison of Japan and Korea
4. The causes of transition in commercial trade
5. The result of commercial trade transition
6. Conclusion and evaluation

1. Introduction
1.1 General statement of the topic
Nearly thirty years, great changes have taken place in the economic pattern of the world. There is rapid economic development in many developing countries, the most obvious reflected happened in China.
With the promoting position of the People’s Republic of China in the world trade, understanding the commercial trade transition of China in recent thirty years and the China’s transition how influence on Korea and Japan are great essential and important elements to research the East Asian area. This transition has been impact on East Asia area in three parts, including East Asia commercial trade market, East Asian government and policy even international economic developing.
The research is placed in the background of economic globalization, and will go beyond the scope of China’s own commercial trade transition related to the international implication to other two Asia countries, Japan and Korea.
1.2 The definition and transition of commercial trade
There is no academic definition of ‘commercial trade’. The closest one is the term ‘foreign trade’ under the People’s Republic of China Trade Law (2004). The definition of ‘foreign trade’ as including import and export of goods, import and export of technology and trade in international services. The first component of this definition is the trade is tangible goods and covers the common usage of the ‘foreign trade’ or ‘international trade’. The second and the third components related to intangible goods in the forms of technology or services. Trade of technology comprises cross-border assignment of patents, assignment of patent application rights, licensing of patent, and assignment of know-how, technical services and any forms of transfer of technology.
(Xin Zhang, 2006) The transition of commercial trade is a process of change during a certain period of time, from the previous one commercial trade patterns into the current commercial trade pattern. In China, for example, was planned and command economy system that state macro-controlled the whole production and purchase. After the three decades the patterns of commercial trade transfer into the market economy.
2. Illustrating the specific nations’ performance during the transition process as an exemplified.
2.1 The transition of commercial trade in China
Doug et al. (2006) point out when established in 1949 China has developed its legal system under the guidance of the Communist Party of China. From the founding to 1970s China struggled between ‘the socialist road and capitalist road’.
During this period, the whole nation practiced the government control planned economy which is issued by the state mandatory target. All the means of production supplied by the each department according to planned. Strictly speaking, this type of economic model is not proper with buying and selling goods, namely, not deliver the ownership. It is just a self-sufficient closed market.
Under of the leadership of Deng Xiaoping, however, China set a new milestone. By the end of the 1970s a fundamental change in direction had occurred to support the policies of ‘opening up’ and a ‘socialist market economy’ (Doug, 2006).”
Since the reform of opening up, the operation of the national economy rely on the objective regulation of economic development, that is to say, the price of goods and services depend on supply and demand fluctuate; various enterprises according to market price changes their decision and adjust their production and operation, thereby maintaining social