International trade between Brazil and China (PDF)

Seminar paper from the year 2012 in the subject Business economics - Trade and Distribution, grade: B, University of Portsmouth, language: English, abstract: In the contemporary business environment, country's growth and development is determined by among others it's GDP and its ability to invest and export its products abroad. Indeed international trade in the recent past has been necessitated by the concept of globalisation. In this case free movement of goods and people is a reality, a concept that promotes trade between countries, regions and organisations. International trade is thus, the exchange of goods and services between two or more countries across international territories. Generally in most cases international trade contributes a lot to a country's Gross Domestic Product (GDP).Indeed it's unthinkable to deduce what would be without international trade. In essence bilateral trade between two countries is becoming a common concept that seeks to compliment two country's potentialities in modern business environment.

Bilateral trade can be defined as the trade between two countries. This trade has numerous benefits to the parties involved, but consequently it can lead disastrous consequences, especially if one party benefits more compared to the other or consequently dominate the other market. What distinguishes international trade from domestic trade is among others, is the concept that, international trade is normally costly compared to domestic trade, and this is due to the fact that borders usually enforce supplementary costs such as tariffs Again time wastage due to delays in the border ant other technical factors. Further according to economists, factors of production are naturally more manageable inside a country than across countries. This study seeks to critically analyse the bilateral relationship between Brazil and China with emphasize on the nature of the trade based on theoretical underpinning and consequent export and import volumes. It will subsequently recommend ways to tackle the problems imminent, in this case what Brazil should do to stop influx of cheap Chinese products in its market.