Reading Reaction Journal #1

January 27, 2011

Reference

Lamy, Pascal (2011,January 24). Made in China’ tells us little about global trade. Financial Times. Retrieved January 24, 2011, from http://www.ft.com/cms/s/0/4d37374c-27fd-11e0-8abc-00144feab49a.html#axzz1C3Te4TX6

Summary

In this article, the writer writes about the international trade. The origin of the merchandise should be marked absolutely according to the fact. Actually, the factor from the merchandise comes from the world, not just from one country. It is also talking about how the international numbers between different countries are not in balance. It depends on different monetary basis. The transportation charge is one of the reasons that increases the price of the international trade merchandise.

Reaction

My major is international trade, so I am trying to read some news about it. In my impression, China is a big factory of producing merchandise. The price of things is lower because of their low salary. Compared with the U.S, the salary and the monetary basis causes the imbalance in trade measure between them. But it can be an advantage of their lower salary. The businessman would like to set the factory there due to the lower cost. In my opinion, I prefer not trying to raise or just not raising too much the salaries in China. It will reduce the competition of earning money as a producer.