International Trade And Finance Assignment Sample

1: Executive Summary

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1.1: Purpose of Report

It mainly focuses on background and information about economic indicators relevant to India and China as well as trade policies, theoretical implementation, and statistical analysis.

1.2: Concept of Report

During the research, secondary sources were used to collect data, and the data were analysed quantitatively using key economic parameters, and descriptive statistics and other important statistical tests were used to substantiate the quantitative data analysis.

1.3: Description of how the research was conducted

It is important to note that the main findings of this report are that both India and China have a great opportunity to expand their economic markets. However, certain strict measures are needed to mitigate volatility in the market.

1.4: Key Benefits from the report

It's crucial to note that the main findings of this report indicate that China and India both have great potential in terms of expanding their economic markets.

2: Background of Financial Markets in economies

2.1: Background of Indian and Chinese Economy Market

Concept of Capital Market

The financial market refers to a broad marketplace where the trading of securities and smooth business running process always depends on the capital market. Individual business organizations associated with the marketplace and capital market growth are crucial which is depending on current financial performance. Identify the current market situation of the organization always important and that described the common market conditions. The capital market of India is generally monitored by the SEBI (Security exchange board of India) while the capital market of china is efficiently controlled by the CCP (China Communist Party.

Commodity Market

In order to, facilitate physical goods among the individual resident always important and individuals aim to diversify some basic portfolios by using the commodity market. As per the narration and explanation of Atkin and Khandelwal (2020), a commodity market is a marketplace where new products are traded and also involve buying behaviour of individual resident. Individual commodities are generally considered natural resources and livestock as well as agricultural goods.

Foreign Exchange Market

The foreign exchange market depends on the currencies of the country and OCT (Over the counter) described the global marketplace and determines the currencies along with the exchange rate. The forward contract as well as future contracts sometimes comprises the future market and derivatives are customizable to underlying the major benefits (Bahmani-Oskooee and Gelan, 2018). The currency exchange transactions are considered for purchasing and selling purposes and theorize the currencies are necessary for managing individual participants. Additionally, the foreign exchange market is controlled by the RBI or the central government and the overall process are depending on local market currencies.

Derivative Market

The financial market refers to the derivative markets and is also considered an effective financial instrument such as futures contracts or options. The margin of individual traders is considered by the derivative market condition and four important types of derivatives are future, option, swaps and forward. Apart from that derivative market is essential to measure the economical background of the individual country and can able to find out numerous solutions in the time of financial difficulties.

Debt Market

In order to, identify the financial conditions of a business is important and the derivative markets describe the minimum percentage of traders. The foreign exchange market of India is directly controlled by the RBI or central government and the overall process are depending on the local market position that ensures the currency valuation at the time of measures terms and conditions.

2.2: Explanation as to how monetary and Fiscal Policies can be energized.

India

In order to, the spot commodities market always depends on some essential goods and services while the derivatives market is entailed a delivery system in the future. The money, as well as fiscal policies, is controlled by the government through continuously monitoring the capital market of the country. As per the narration of Khan et al. (2020), improve the economical infrastructure of India and that can identify the basic problems of the economical conditions. Identifying the current capital market of the business is also necessary and that able to manage the current market position.

China

The Chinese monetary policy and financial derivatives are completely different in numerous countries and financial instruments controlling the derivatives market and can be divided into traded derivatives over-the-counter derivatives.

2.3: Discussion on Management of Public and Financial Activities

India

In order to, the spot commodities market always depends on some essential goods and services while the derivatives market is entailed a delivery system in the future.

China

The Chinese monitoring fiscal is controlled by CPP and that can able to manage the current market condition. The financial market for derivatives is efficiently controlled by financial instruments that can able to identify the current situation of the financial condition.

2.4: Illustration of Development and Investment activities and risk management

India

The financial market for derivatives is efficiently controlled by financial instruments that can able to identify the current situation of the financial condition.

China

In order to, the financial market described the avenue for the purchase and sale of assets such as stock, bonds, foreign exchange as well as derivatives and foreign exchange markets which are controlled by the government of an individual country.

2.5: Overview of Market Performance and attractiveness quotient

India

In order to, sometimes hard commodities are generally needed for immediate delivery services and an immediate delivery system of the market is always important to diversify derivative markets.

China

Market performance and attractiveness are always important and market traders are trying to manage the market issues of the country.

3: Critical Assessment of Attractiveness for International Expansion

3.1: Comparative advantage theory

A comparative advantage theory is always useful and international trade of business is always controlled by the comparative advantage theory. Additionally and comparative advantages are involved when it yield goods or services at a minimum cost of opportunity than its competitors, and the concept of comparative advantage was first proposed. Knowing the concept of opportunity cost is fundamental to understanding the theory of comparative advantage. As cited by Gruszczynski (2020), choosing one alternative over another, one foregoes the benefits of the other. Free trade is based on comparative advantage as a fundamental of international trade and it is also important to focus on productivity, speed, and efficiency - even if these factors can be more challenging to quantify on a large scale.

A comparison of the opportunity cost between France and the ‘United States’ can show that China enjoys a comparative advantage when it comes to cloth production because its opportunity cost is reduce. France also enjoys a ‘comparative advantage’ over other nations in the production of wine because of its lower opportunity costs when comparing the opportunity cost of 1 product. As opined by Avgerou and Bonina (2020), when we discuss countries that produce multiple products efficiently, it's not necessarily true that they have a comparative advantage in several products; in fact, the opposite is true. The products of two producers may have a greater efficiency gap than those of another product; in that case, you should divide the work up to reduce cost while increasing overall production. A country's budget typically includes issues such as labour costs and land costs, but capital is also important, as is the availability of any necessary materials or goods.

3.2: Leontief theory

A table of input-output values was constructed by Leontief in 1947 for his first study. In addition, identify labour market condition is needed to produce output for various industries. Based on a constant relative commodity composition of exports and imports, calculated the effects on imports and exports. As a result of Leontief's research, it was widely accepted that the United States specialized in labour market condition is depending on capital-intensive goods in the international division of labour paradigm. As per the study of Baldwin and Tomiura (2020), according to the theory, labour-intensive because the U.S. has relatively ‘abundant capital’ but relatively involves poor labour condition. In order to, explain the specific theory most business organizations are involve more productive labour, has relatively more efficiency level are involved in the country.

So treating individual labour as a homogenous item internationally and measuring it in years would be more relevant. American workers are more efficient than their foreign counterparts even when they work with the same amount of capital. Based on a constant relative commodity composition of exports and imports, are effectively compare the current market condition of both country. In order to, identify the current market position of both country are necessary and that can described the basic conditions of the market. Individual residents are trying to identify how to develop economical sustainability to improve the current market situation.

3.3: Country similarity theory

A similarity theory is always important and consists of the majority of trade and efficiently managing how to mitigate the common strategy which is necessary for the future scope. In order to, introduce a new product is always important to enhance the current market situation but product similarity always hampers the economical condition of the market. In order to, fulfil the basic needs and the product is quite different and the current market situation always prefers less or common similarities. In Linder's theory, consumers in similar or similarly developed countries preferences are similar. As Linder proposed in this firm-based theory, companies produce to satisfy domestic needs first. As narrated by Chaney (2018), at the time of identify current market position of business always important to understand financial position. The foreign exchange market of India is directly controlled by the RBI or central government and the overall process are depending on the local market position that ensures the currency valuation at the time of measures terms and conditions.

4: Evaluation of Indian and Chinese Economy

4.1: Evaluation using Descriptive Statistics

Mean	51.66055	Mean	27.17431
Standard Error	2.899208	Standard Error	2.780198
Median	50	Median	16
Mode	43	Mode	1
Standard Deviation	30.26862	Standard Deviation	29.02612
Sample Variance	916.1893	Sample Variance	842.5156
Kurtosis	-0.64322	Kurtosis	1.028189
Skewness	0.276033	Skewness	1.351282
Range	130	Range	115
Minimum	0	Minimum	0
Maximum	130	Maximum	115
Sum	5631	Sum	2962
Count	109	Count	109
Confidence Level (95.0%)	5.746733	Confidence Level (95.0%)	5.510835

A descriptive statistics is brief informational efficiencies and that able to find out some necessary solution to minimize the complex situation. In order to, measures the central tendency always important to measures variability and descriptive statistics always useful to describe as well as summarize two basic categories which is necessary for the business (Yakovleva, 2018). The mean value is almost 51.66 and 2.88 for standard error which is efficiently measures the variability of the project.

4.2: Evaluation using Regression Statistics

Regression Statistics
Multiple R	0.049611
R Square	0.002461
Adjusted R Square	-0.00686
Standard Error	30.37229
Observations	109
ANOVA
df	SS	MS	F	Significance F
Regression	1	243.5396	243.5396	0.264007	0.60844
Residual	107	98704.9	922.4757
Total	108	98948.44
Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	50.25469	3.993674	12.58357	7.83E-23	42.3377	58.17168	42.3377	58.17168
X Variable 1	0.051735	0.100688	0.513816	0.60844	-0.14787	0.251337	-0.14787	0.251337

A regression analysis set of statistical methods and that basically used to identify the basic relationship with the individual variables are necessary and involve. A statistical modelling is important to measures central teeny along with the variability of a project (Wang and Ang, 2018). There are total 109 observations and a standard error 30.37 which is describes the basic familiarity between the independent and dependent variables.

4.3: Evaluation using ANOVA

Anova: Single Factor
SUMMARY
Groups	Count	Sum	Average	Variance
Column 1	109	5631	51.66055	916.1893
Column 2	109	2962	27.17431	842.5156
ANOVA
Source of Variation	SS	df	MS	F	P-value	F crit
Between Groups	32676.89	1	32676.89	37.16017	4.95E-09	3.88487
Within Groups	189940.1	216	879.3524
Total	222617	217

Analysis of variance is evaluated by the ANOVA Test and that measured as important statistical tools to managing the aggregate variability of statistical models and groups. In order to, describe the basic differences between the dependent and independent variables are important and that separating variability of a project (Forslid et al. 2018). According to Linder's country similarity theory, manufacturing trade is most likely describe current market situation and similar market condition always important for trade or manufacturing industry. The theory predicts that countries with similar characteristics are more likely to do business together.

4.4: Evaluation using t-test

t-Test: Paired Two Sample for Means
Variable 1	Variable 2
Mean	51.66055	27.17431
Variance	916.1893	842.5156
Observations	109	109
Pearson Correlation	0.049611
Hypothesized Mean Difference	0
df	108
t Stat	6.252853
P(T<=t) one-tail	4.12E-09
t Critical one-tail	1.659085
P(T<=t) two-tail	8.24E-09
t Critical two-tail	1.982173

t-Test: Paired Two Sample for Means
Variable 1	Variable 2
Mean	51.66055	27.17431
Variance	916.1893	842.5156
Observations	109	109
Pearson Correlation	0.049611
Hypothesized Mean Difference	0
df	108
t Stat	6.252853
P(T<=t) one-tail	4.12E-09
t Critical one-tail	1.659085
P(T<=t) two-tail	8.24E-09
t Critical two-tail	1.982173

Two groups are compared using the t test, a statistical test. Hypotheses can be tested by using it to establish whether two groups differ from each other or whether a particular process or treatment has an effect on that population. The mean value is 51.66 and variance is 916.18 and that can be evaluating the familiarity between the individual variables.

5: Major challenges face by India and China due to Trade policies and Industrialisation

5.1: Industrialisation

Industrialization is a period of economical as well as social change that effectively transformed individual group or society and an organization always important to improve social and economical culture. Most of the business organizations are facing economical as well as social challenges that directly affect organizations performance. Industrialization legacy always puts positive as well as negative impact on the business organization and that responsibility to dealing with the individual challenges related to the social and environmental. As per the narration and explanation of Burstein et al. (2019), individual industrial ecologist always make significant changes in the business by involving different types of characteristics and that efficiently dealing with the complex situation. The process of industrialization makes numerous changes and trying to improve capitalist across the states and demonstrate central planning which is efficient to increase more future scope.

Industrialization is a common responsibility which is controlled by the government and trying to efficiently dealing with the negative situation in business. In order to, developed countries are trying to develop sustained attention and make numerous solutions at the time of difficulties. Additionally, devoted to individual manufacturer always makes positive impact on business performance and industrialization initially increased productivity of business. As narrated by Caselli et al. (2020), after initial industrialization, the growth in employment in the service sector outperforms the growth in the manufacturing sector, as increases in productivity of labour balance are gradually increases in demand, and increases in labour productivity are balanced.

The currency exchange transactions are considered for purchasing and selling purposes and theorize the currencies are necessary for managing individual participants of the foreign exchange market. In order to, industrialization is important and that sometimes involved by the social and economical development over the country. Additionally, makes positive solutions in economical situation of the country always important and also involved resource based solutions which is necessary to improves more future scope.

5.2: Challenges

India

There was a substantial decline in quality of life and life expectancy as a result of air pollution and water contamination. The separation of capital and labour was also further exacerbated by industrialization. According to Linder's country similarity theory, manufacturing trade is most likely to occur between countries with per capita income, and trade between industries is common (Turker, 2018). The theory predicts that countries with similar characteristics are more likely to do business together. A country's development level, savings rate, and natural resources are examples of these qualities.

China

According to Germany, Industry 4.0 will revolutionise the manufacturing industry. What challenges does China's manufacturing sector face as a result of this revolution? Identifying problems and providing solutions are the keys to success. An in-depth analysis of China's manufacturing situation is carried out on the basis of statistical data and qualitative analysis (Friedt and Zhang, 2020). Individual industrial ecologist always make significant changes in the business by involving different types of characteristics and that efficiently dealing with the complex situation.

6. Conclusion and recommendation

6.1: Conclusion

Based on the above context it can be concluded that, extend the financial conditions of current market situation and that identify the basic benefits of current financial market. A statistical modelling is important to measures central teeny along with the variability of a project. Based on a constant relative commodity composition of exports and imports, are effectively compare the current market condition of both country. There are total 109 observations and standard error 30.37 which is describes the familiarity between the variables. Two groups are compared using the statistical test. Hypotheses can be tested by using it to establish whether two groups differ from each other or whether a particular process or treatment has an effect on that population.

In order to, individual resident can show that China enjoys a comparative advantage when it comes to cloth production because its opportunity cost is lower. The financial market refers to the derivative markets and is also considered an effective financial instrument such as futures contracts or options. The theoretical implementation always necessary and that makes positive solutions at the time of difficulties. The basic difference of current market between China and India are evaluated by the t test.

6.2: Recommendations

Indian and Chinese economies need additional investments in order to boost their GDPs and domestic incomes. India should be assisted in expanding its agricultural business, and China should be provided with technological advances. Further, India and China are encouraged to improve their market expansion strategies for a prolonged period of time in order to achieve a harmonised performance and financial outcome. In order to, identify the current market situation of the organization always important and that described the common market conditions. The technological expansion strategy is important to develop current market condition and individual country needs to follow it.

References

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