There are about forty thousand multinational companies operating world wide and almost 200,000 overseas joint ventures that run across the continents. Many of these collaborations and joint ventures have concerns, directly or indirectly, with China business enterprises. The access to China through world-wide international trade investments is increasing day by day.
Moreover, due to globalization the extent to which China's international trade and investments bears an impact is very wide. It is due to globalization that the international market has a direct approach to acquire modern technology and consequently reduce the problems of distribution and stumpy internal coordination expenses. It has opened the doors for the specialization of network services and products with collective support of companies. Business process outsourcing for both internal activities and external activities is the result of globalization of international trade and global investments. Business process outsourcing is the common concept in the entire world and China is one of the leading countries that provide such services. For quality work and performance the outsourcing companies often select China as their business collaborators.
With the increasing ratio of communication and exchange of technologies between China and other countries, it has now become easy for companies to get access to new technologies. With the changing liberalization policies in the whole world including China, a good number of companies are garnering benefits from international trade and investments. From expansion point of view many multinational companies in China are increasing their level of work so that they can gain maximum share of international trade and investments. These corporations are also busy in increasing the goodwill of their brand name and are continuously striving to make their presence felt in international trade. On account of increasing competitiveness in international market, multinational corporations are paying sufficient heed to provide quality work at low price.
As such they are investing on reasonable price raw materials and labor. However the main reason for all these activities is to get access to a wider market. Although there are some drawbacks of expansion of international trade and investments but if rules of international trade are followed then the problems can be minimized and properly handled. The big size of the Chinese market is a major attraction to many prospective new entrants in international trade and investments.
Advantages Of International Trade
Earlier this week, Iran denied rumors that it would begin transporting gas supplies to the United Arab Emirates during the first three months of 2007 under a new international trade agreement with Crescent Petroleum Co. But Dr. Mohammad Ali Izadi, the current Chief of the Execution and Supervision Department of the Iranian Oil Ministry, clarified that no international trade deal on gas supplies was closed between his country and the UAE. Meanwhile, Iran's Oil Minister Kazem Vaziri Hamaneh stated that both Iran and Crescent Petroleum have not made any new move concerning the agreement, which they previously signed. But Mr. Hamaneh said that he expected that the ongoing negotiations between the two parties would pave the way for the revision of the current gas prices.
But Mr. Izadi said that Iran remained open to other possibilities concerning its gas exports to the United Arab Emirates. According to analysts, Iranian gas supplies would play a significant role in meeting the increasing energy demands of the UAE. According to Mr. Izadi, his country would keep its doors open to any firm, including Crescent Petroleum, that was interested to strike a deal with the government. He also said that Iran intended to provide the UAE with gas supplies considering their international trade alliance. Mr. Izadi stated that Iran has already completed 85% of the 270 km energy pipeline project. Around 240 km of the pipeline is said to lie on the Iranian territory. According to reports, the huge energy project costs around $600 million.
Mr. Izadi clarified that the previous negotiations between Iran and the UAE did not necessarily mean that both parties have reached an international trade deal. According to him, the rumors were intentionally spread for the purpose of influencing UAE's stock market. Meanwhile, ISNA (Iranian Student News Agency) reported last weekend that the gas deal between Iran and the UAE had certain ambiguities and had no clear pricing formula.
Aside from being the second biggest oil producer worldwide, Iran also has one of the largest reserves of natural gas worldwide. Currently, there are several nations tapping into the rich gas resources of the Middle East country through international trade agreements on energy. Recently, Iran resumed its operations and gas supplies to Turkey after a portion of the former's pipeline was damaged by an explosion. Under an international trade deal on energy, Turkey taps into Iran's rich gas resources in order to meet its current energy demands. Both nations have already agreed to increase security in the area where the explosion took place.
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