Business organisation and environment

Table of Contents

1. Topic pack - introduction
2. 1.1 Nature of business activity - notes
3. 1.1 Nature of business activity - questions
4. 1.2 Types of organisation - notes
5. 1.2 Types of organisation - questions
6. 1.3 Organisational objectives - notes
7. 1.3 Organisational objectives - questions
8. 1.4 Stakeholders - notes
9. 1.4 Stakeholders - questions
10. 1.5 External environment - notes
11. 1.5 External environment - questions
    1. The social environment - self-test
    2. The economic environment - self-test
    3. Technological change - short answer questions
    4. Technological change - case study
    5. Economic growth - short answer questions
    6. Inflation - short answer questions
    7. Exchange rates - short answer questions
    8. Exchange rates - Case Study
    9. Unemployment - short answer questions
    10. Interest rates - short answer questions
    11. Apple's iPad goes global
    12. Anti-monopoly probe by EU
    13. Oiling the wheels of industry?
    14. Japan cuts Interest rates
    15. China relaxes controls on Yuan
    16. External influences and market structure
12. 1.5 External environment - simulations and activities
13. 1.6 Organisational planning tools - notes
14. 1.6 Growth and evolution - notes
15. 1.7 Growth and evolution - questions
16. 1.7 Growth and evolution - simulations and activities
17. 1.6 Change (HL only) - notes
18. 1.9 Globalisation - notes
19. 1.9 Globalisation - questions
20. Print View

China relaxes controls on Yuan

Chinese accused of maintaining weak exchange

Chinese imports into the lucrative US market are starting to hurt and that's official. The last independent maker of TV's in the US wants an 84% tariff put on all imports of these mainstream purchases from China and Malaysia. He accuses producers in these two countries of 'dumping' products on the US market.

Once it was Japan and its near neighbour South Korea who frightened US manufacturers. Now their attention has been turned to the new powers in the Far East. The US trade deficit with China is $44 billion and rising.

The 'low' price of the Chinese currency has also attracted the notice of concerned US-based producers. Pressure is now on for the President to demand that the Chinese currency (renminbi) be floated. The drive for protectionism is gaining momentum and tariffs and other barriers are threatened. US textile producers are complaining that imports from China, which became a member of the WTO in 2001, are costing thousands of US jobs.

So, is this a genuine threat to the living standards of those US people working in these industries, or is it simply the domestic economy growing accustomed to the globalisation of trade and the shift of manufacturing capacity to more 'economic' locations? The US companies point to low wages and few labour protection rules in China. As a country, its old political regime can still cause problems, for it allows the industrial sector to launch new products with enormous speed - command economies can still exert pressure on conforming with whatever they want its people to do.

The battle is set to begin and who can guess the outcome?

Questions

1. Define (a) dumping and (b) floating exchange rates
2. Examine the reasons why China's decision to relax its control over the yuan should help US producers.
3. Discuss the advantages and disadvantages of the USA introducing trade barriers against Chinese goods

Suggested answers