2016-12-27 来源: 51Due教员组 类别: 更多范文
1.0 IntroductionSince the “Open Door” policy was launched in 1978 ，and China has been joined World Trade Organization (WTO) for almost eight years, export supplies and import demands in China are increasing in recent years. Agricultural products are one of the largest export merchandises of China. The trade of Chinese agricultural products tends towards globalization and liberalization. Furthermore, globalization and trade liberalization are inseparable from global sustainability. Both of them have positive or negative impacts on global sustainability. This essay will firstly discuss the relationship between globalization and trade liberalization of Chinese agricultural products. Following this, it will explain positive effects of globalization and trade liberalization of Chinese agricultural products on global sustainability. Finally, it will look at the negative influences of globalization and trade liberalization of Chinese agricultural products on global sustainability.
2.0 Case Analysis---------- Chinese Agricultural Products
2.1 Globalization and trade liberalization
(1) Introduce the concept of globalization
“Globalization” is a word used commonly nowadays. Scholars in various fields represent “globalization” in different ways. However, there is no a notion of “globalization” has accepted by all the people. Nonetheless, two typical theories of it are popular in western countries. Globalization is defined as“a step toward a fully integrated world market and as a key ingredient of a global society. More precisely, globalization is a phenomenon that encourages international integration through free trade and communication across borders ”(Thai, Rahm and Coggburn, 2007). From the viewpoint of economics, JF Steiner and GA Steiner (2005) argue that globalization refers to the development of an increasingly integrated commercial system based on free markets in which nations are open to foreign trade and investment.
According to above definitions, globalization is a phenomenon that trade and investment about not only commodities (goods and services) but also human resources (labor workforce, knowledge and technology) as well as capital occur from one country to another or even above countries.
(2) Globalization of Chinese agricultural products
Agricultural products are one of the important sources of Chinese economy. Before China implemented “Open Door” policy in 1978, agricultural products were under the self-sufficient economic system. During that period, agricultural products were produced and then sold only in domestic market. The market of Chinese agricultural product is extremely narrow. After 1978, Chinese agricultural products started to be traded to several foreign counties. However, the trade of Chinese agricultural products was not completely globalized because related export and import policies for China had not been drawn up. Until China joined WTO in 2001, the global markets of Chinese agricultural products are expanding gradually. Although some trade barriers to Chinese agricultural products are still not eliminated, the trade of them is getting more and more global. Apart from agricultural products involved in traded commodities, new agricultural technology is also imported to China. In recent years, export amount of Chinese agricultural products every year is increasing and standing at the front rank in global export quantities of agricultural products. National Bureau of Statistics of China’s website (2009) indicates the export volume of Chinese agricultural products was 13,080 million dollars in 2000 and jumped to 17,330 million dollars in 2004.
2.2.2. Trade Liberalization
(1) Introduce concept trade liberalization
Trade liberalization refers to each member of WTO has an obligation to liberalize goods, services and trade-related investments steadily. That is, all the countries in WTO are responsible for executing every agreement and policy made by the organization or among members. In addition, members should accept the supervision as well as intermediation of the organization. Finally, members reduce tariffs and trade barriers; remove discrimination treatment for each other in order to realize trades to be globalized freely without any additional conditions.
Some authorities in international business filed give “trade liberalization” further explanations. For instance, Subramanian and Gelbard (2000) consider“Trade liberalization was associated with faster economic growth, especially when comprehensive macroeconomic reforms. ” McCulloch et al. (2001) examine the link between trade liberalization and poverty. They hold the opinion that trade liberalization can fight against poverty since trade liberalization will provide more resources to nationals to increase average incomes.
(2) Trade liberalization of Chinese agricultural products
Trade liberalization of Chinese agricultural products has developed faster and faster since China became a member of WTO. China has made some efforts to carried out its promises in “Uruguay Round”agricultural agreement. For example, decrease tariffs of agricultural products by 20% and rise tariff quotas three times (Barker, Sinha and Rose, 2008). Nevertheless, some trade barriers cannot be avoided in liberalization process. Trade liberalization has not got rid of “trade protection” fundamentally, it is not true “ free trade” actually. “Trade protection” for agricultural products of developed countries relies on new measurements such as anti-dumping, technology barriers or especial guarantee terms to maintain their benefits. These anthropogenic factors interfere in the development of trade liberalization of global agriculture, particularly for developing counties, and in fact, such situation is taking place in China.
2.2.3. Introduce the relationship between globalization and trade liberalization
Globalization and trade liberalization is complementary to each other. Trade liberalization is the motivation and necessary stage of globalization. Globalization is the ultimate goal and final tendency of trade liberalization (Salvatore, 2004). It is commonly to use them together as the same name. However, they still have different meanings and purposes. Trade liberalization liberalizes commodities and valuable resources to go through all over the world without limitations. It makes goods and resources fill in the right position where they are needed to match the essence of full market economy system, meaning a perfect economy system runs without any government interventions. As a result, global materials and resources realize their values sufficiently. Trade liberalization will achieve globalization of economy to improve economic situations of all over countries consequently. This outcome is called globalization and it leads to a series of benefits. Undoubtedly, more material supports and more economic opportunities will be provided to developing countries to help them improve their market system. Moreover, efficient market system will be completed for developed countries to boost their economy to reach at another peak. Then globalization optimizes global resource collocation to integrate the economy of whole world.
Take Chinese agricultural products as an example, owning to importers' reduction in tariffs, which is a requirement in the agreement of trade liberalization. Chinese agricultural products are exported to global markets to attain the target of globalization. Therefore, it rises up profits for farmers in China as well as boosting the development of Chinese agricultural products. Similarly, as China decreases its agricultural tariffs as an exporter, new technology or agricultural species can be introduced to China. Gather speed of globalization of Chinese agricultural products.
2.2 Global sustainability
2.2.1 Introduce the concept of global sustainability
“Sustainability” is short for “sustainable development”. Global sustainability is linked with various aspects of sustainability , which are global politics, economy and the most essential—environment. According to Spiro and Stigliani (2003), global sustainability arises from perception that human activity is using up nature’s resources at rates beyond the capacity of nature to restore them and sustainability implies maintaining these resources for future generations. Additionally, Edwards (2005) points out that sustainability is a concept that defines what is needed for our civilization to survive, and the discussion about sustainability is of great importance on the planet. Besides, Newman and Kenworthy(1999,p.1) indicate “Sustainability means simply that in a global context any economic or social development should improve, not harm, the environment.”
Based on above viewpoints, global sustainability focuses on the point that human activities are compatible with environment. Environment should be protected all the time during the developing process of global economy. In other words, environment must not pay for the development of global economy. Natural resources have to be treated as recycling instead of running all of them out only once.
2.2.2 Explain the impacts of globalization and trade liberalization on global sustainability
Globalization and trade liberalization of Chinese agricultural products have either positive or negative effects on global sustainability. It is as Raman (2006) mentioned in the book, “Globalization and trade liberalization present both opportunities and challenges for agricultural sustainability. They are comparable to the two strands of a double helix; one upward, representing solely beneficial effects, and the other downward, representing adverse impacts on global agricultural sustainability. ”
(1) Introduce the relation between them
Globalization, trade liberalization and global sustainability rely on each other deeply; they cannot be separated at all. There is no fundamental diversity between the essences of globalization and trade liberalization. The essence of them means that both of their final aim is to boost global economy. It is worth mentioning that global sustainability is an extremely important theme to go through the development process of globalization and trade liberalization and it plays the role of the necessary condition for the continued development of globalization and trade liberalization.
As an illustration, if globalization and trade liberalization of Chinese agricultural products are good for global sustainability, such as developing new species of plants or animals, then some trade barriers will not exist any more because of the strong competitive capacity of Chinese agricultural products. Thus, globalization and trade liberalization will move towards completeness. Equally, if globalization and trade liberalization of Chinese agricultural products are bad for global sustainability, such as overcutting forests, then it will lead to the environment to become worse. Therefore, there will be less resources can be used to develop globalization and trade liberalization of the products. More terribly, the government of environment should be done at tremendous costs and perhaps some damages even cannot be recovered forever. Overall, global sustainability is an element cannot ne neglected in the development of globalization and trade liberalization.
(2) Explain the impacts in detail from two aspects
ⅰ. Positive impacts
Positive effects of globalization and trade liberalization of Chinese agricultural products on global sustainability reveal in two aspects: optimize resource allocation and increase competitive capacity of Chinese agricultural products.
① Optimize resource allocation
Natural resources and human resources are two factors involved in optimizing resource allocation. This advantage can be confirmed by Sampson (2005) who also emphasizes globalization and trade liberalization “can improve resource allocation, increase growth and make more resources available to improve the environment.”
Globalization and trade liberalization of Chinese agricultural products optimize natural resource allocation through diversifying agricultural products. Firstly, Chinese agricultural products are exported to international markets, and then the products are shared by global countries. For example, some kinds of Chinese agricultural products can be brought into some countries which perhaps have not planted successfully or never owned those seeds before. In this sense, Globalization and trade liberalization of Chinese agricultural products are beneficial for global sustainability by preventing biotic resources from dying out of the world. Furthermore, they realize re-growth of plants as well as rebreeding of organism. The purpose is to agree with sustainability which implies natural resources can be last for a long time, especially to next generation. Secondly, Chinese agricultural products can develop their diversification of species through importing new genes of species to China at lower costs. On this side, Globalization and trade liberalization of Chinese agricultural products complete global biosphere to actualize the value of natural resources. Hence, for global sustainability, they can extend the duration of using natural resources.
Globalization and trade liberalization of Chinese agricultural products optimize human resource allocation through resources sharing globally. New technology and theories will be introduced into China which can be applied in Chinese agricultural products in order to rich their output chains. Furthermore, new technology and theories usually are generated with the purpose to decline pollution to environment and increase the productivity of agricultural products. Sine they are rather environment-friendly, much more “green products” will be produced. Then this result is good for global sustainability. For the same reason, new technology and theories of Chinese agricultural products can be brought into global countries that need them to improve their sustainability.
② Increase competitive capacity of Chinese agricultural products
Increase competitive capacity of Chinese agricultural products is an effective way for them to break trade barrier to achieve global sustainability. Along with the development of globalization and trade liberalization of Chinese agricultural products, it also predicates the products will face more and more challenges. The challenges, like trade barriers, come from the same products traded by the members in WTO. That force Chinese agricultural products to change towards “green products”, meaning products are harmless for the environment. The products will not finish their steps to globalization and trade liberalization until they make this reform to increase their competitive capacity. In a long time, it is good for global sustainability.
ⅱ. Negative impacts
Negative influences of globalization and trade liberalization of Chinese agricultural products on global sustainability embody three main aspects: pollution transfer, destroying global ecological system and poverty. In deed, they are three major indicators of environmental sustainability (Halberg et al., 2006).
① Pollution transfer
Harris (2004)regards the notion of pollution transfer as“pollution transfer in the global biogeochemical cycles means that the developed world is not isolated from the polluting effects of increased industrialization and consumerism associated with raising the living standards in the developing world. Similarly, the developing world is already bearing many of the Environmental burdens of industrialization and consumerism in the developed world. ’
Pollution transfer is one of the major threats to Chinese sustainability, even global sustainability. This problem is caused by the expansion of globalization and trade liberalization of Chinese agricultural products. The more frequently and widely the products are traded, the more serious “pollution transfer” is. As a result, it will have a negative impact on global sustainability eventually.
“Pollution transfer” problem in the globalization and trade liberalization of Chinese agricultural products refers to developed countries in WTO transfer their agricultural pollution which is often hard to govern at very huge costs to developing countries, China. The agricultural pollution usually is land pollution and forest pollution. Halberg et al. (2006) state ‘Eroded soils are often lost for productive agricultural use for a very long time, whereas soils that are regarded through loss of soil organic matter, soil compaction nutrient mining or salinization may be restored through proper agricultural management techniques’ To illustrate, developed countries in WTO use trade barriers to import primary agricultural products from China, and then process them at home to ultimate agricultural products. It is known that primary agricultural products should take up more lands or forest resources. Hence, China is led to its excess reclamation of lands or forests. It is proved by National Bureau of Statistics of China’s website (2009) which records China owned 130,040 thousand hectares of farming lands in 2005, taking up 13.54% of the total lands in China. Moreover, those trade barriers limit the export of Chinese agricultural ultimate products. It will result in wasting valuable resources for China and finally cause damages for Chinese sustainability, even global sustainability in the future.
② Destroy global ecological system
Globalization and trade liberalization of Chinese agricultural products will influence either Chinese sustainability or global sustainability negatively through destroying ecological system. Whether global ecological system can keep balance and healthy or not is the core issue of global sustainability. From “pollution transfer”, in the case of Chinese agricultural products, it can seen that excess reclamation of lands or forests which are caused by pollution transfer to China will bring about some problems such as the loss of water and soil. Maybe those problems will break Chinese ecological system in a short term. However, there are 204 developing countries whereas 20 developed countries in the world. Developing countries are much more than developed countries. More importantly, some of the developing countries such as China and Australia are agricultural countries plus lots of farming lands. At this point of view, it is likely that the protection of global ecological system depends on how ecological systems run in developing countries. “Pollution transfer” will break the balance of global ecological system in a long time. Destroying the balance of global ecological system implies the globalization and trade liberalization of agricultural products deviate from global sustainability which represents the form of “greenhouse effect” and “global warming” or others.
Poverty is a linked part to global sustainability which is caused during the process of globalization and liberalization of Chinese agricultural products. Hens and Nath (2005)claim that the relationship between poverty and sustainability is that poverty as‘an overarching objective of sustainable development —that is the desire outcome of a successful development process — and an essential requirement of sustainable development— that is a means to and end. ’Globalization and trade liberalization of Chinese agricultural products can lead to famers to be poorer in China which as a developing country, as well as developed countries to be much richer. When “pollution transfer” occurs, developed countries will sell the agricultural ultimate products at high prices but at very low, almost zero environmental costs. Because the huge environmental costs are undertook by developing countries. Furthermore, trade barriers force most incomes of farmers in China rely on the export of primary agricultural products. The profit of primary agricultural products is much less than the one of agricultural ultimate products. It is unreasonable since developing countries should take on not only the task that to develop their economies, but also spend money on governing environment. At the same time, this matter does not trouble developed counties. Therefore, globalization and liberalization of Chinese agricultural products makes poor countries poorer and richer countries richer, that is, the economic gap between two kinds of countries are enlarging.
In conclusion, take Chinese agricultural products as an example, three factors: globalization, trade liberalization and global sustainability are tied up with each other closely. Globalization is the final objective of trade liberalization, and trade liberalization is a needed stage to go for globalization. They influence global sustainability either positively or negatively. In the long run, negative impacts on global sustainability may decrease if Chinese agricultural products develop towards sustainable way, that is, to apply new technology in the production process of agricultural products in order to protect environment and use natural and human resources efficiently. In addition, developed countries should implement global sustainability together with developing countries through removing trade barriers as much as possible.