World Economy Essay Example

government to issue provisional bonds to revive this sector. The devaluation of the US dollar compared to Euro has accompanied the decrease in retail sales. Some economists believe that what is happening in the US economy mirrors Japan's recession ten years ago, which may be partly due to differences in interest rates.

New opportunities for American Companies could arise if the US increases its access to China markets. The “Air Service Liberalization” discussed during the Second Meeting of the U. S.-China Strategic Economic Dialogue is expected to double passenger rates from the US to China, benefiting both parties. The removal of all-government set limits on cargo carriers and flights will provide unlimited access for US export products. China's constantly growing population is significant in the US tourism industry with millions expected to travel to the United States, creating a considerable number of tourism-related job opportunities.

China's increase of its quota for Qualified Foreign Institutional Investors by 200% will provide greater access to the China Financial market for the US. In addition, the expansion of Qualified Domestic Institutional Investors investment will enable more investment opportunities for the US. Collaborating with China could result in numerous possibilities, and potentially lead to the US becoming a "giant" once again.

Source: Eichengreen, B. and Tong, H. How China is Reorganizing the World Economy.

Lockwood (2005) published a paper in December of that year, which can be accessed at <http://www.aeaweb.org/annual_mtg_papers/2006/0106_1430_1702.pdf>.

The web page titled "China and the World Economy" was published on October 7th, 2005 and can be found at http://www.tutor2u.net/newsmanager/templates/?a=680&z=1.