All kinds of business and economies could take opportunity to gain the potential benefits from international trade. For example, a multi-nation corporation can lower its product cost by locating its factory in country with relatively low exchange rate and tax rate. Consumers tend to spend more money on normal goods when their purchasing power increases. International company can always gain potential benefits of international business which leads to cost efficiency.
Under the current state of natural, the world’s overall economy is continuously developing, and regional economies become more and more interdependent. China’s economy is dramatically expanding with the tendency of increase in the currency’s exchange rate. As a result, companies might begin to consider about moving some of the factories in China to other country in the purpose of avoiding increase in product cost. On the other hand, the increasing average income in the country and the huge population indicate a tremendous potential to expand business. The foresighted corporations should spend more budget and effort on marketing for Chinese consumers.
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