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Business Impact To A It Firm When China Enters The World Trade Organization.

2112 words - 8 pages

IntroductionThe time is not far when the face of the economic side of the world will change with the advent of the rules and regulations of the World Trade Organization (WTO) being implemented in China. This is something that has been on the table of discussions for people, especial in many business firms. In brief, the World Trade Organization (WTO) is "the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world's trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business."(World Trade Organization, 2003)International Marketing Analysis has been suggestive of the fact that things will change. The markets will grow and they will open up when a country joins the WTO, and once they do that it will be the customers who will be the final choosers. They already are the choosers but there are factors that protect some of the producers while some of them simply go unnoticed. That is why it is imperative that all in all the countries know their strengths and weaknesses. It is about time that the strengths can be built upon and the weaknesses have to be done away with. This is important and the reason for that is the competition. The exports have to be maintained at the sustainable level on the very least. The ones, which can grow at that point in time, will be the true winners. But that is some thing that is going to take a lot of doing.China entering WTOWhen China enters into the WTO, there will be various impacts to the economy as well as to business firms. The impacts could be both positive and negative. This would depend upon the nature of the business and the industry the company is operating in. In general these impacts would results in growth of investment, improved trade figures; decrease in the rate of unemployment and layoff rates; and substantial improvement in the quality of rural life through poverty alleviation programmes. China has prepared to learn from other countries in respect to these issues. It involves the needs to translate high tech into actual products, to promote repaid commercialization and to provide assistance to move into export markets. China enter intro the WTO also meaning that the small-medium enterprises(SME) will face tough competition and in the near future, the weaker company will have to radically improve their productivity in order to survive in the industry or market. China needs to establish a good legal environment as there is a recognized need to have regulations based on law. There is a need to eliminate discrimination against the private sector. The Chinese government should develop a service sector to eliminate barriers to entry for SMEs.Impact on a firmTo a small Hong Kong business firm in the Information Technology industry, the impacts would more likely to be in the area of its technological...

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