Question

What are the similarities and differences between the Chinese and US markets? Are these positives or negatives?

Answer 1

There are various similarities and differences between Chinese and United States markets as -

Similarities between both the markets-

A .Both the American Markets and Chinese markets are among the top developed nation Markets and they are having a large combination of financially successful companies of the globe.

B. American Markets and Chinese markets are providing a high level of transparency to various financial intermediaries in the markets and their promoting better trade policies.

C. American markets are also adopting a high level of globalisation whereas Chinese markets are also adopting a high level of globalisation so they are promoting free trade

D. When it will be coming to new listing of the companies on the stock exchanges Chinese markets are allowing listing of foreign company whereas United State markets are famous for listing of foreign stock through American depositary receipt.

Differences between Chinese market and United States market-

A. Chinese Market is often characterized by high level of intervention by the government into the market whereas United States market is promoting a high degree of transparency

B. there is a high level of outsourcing in case of American markets whereas Chinese Market does not suffer from same problem because they are offering a low priced services.

C.Chinese Market have gone through an industrial revolution and they are offering a very low rate of taxation for the companies and they are attracting a large Global companies to manufacture in China whereas American markets are often known for high level of taxation and low level of subsidies for given domestic companies.

D. American markets have a high level of bailout programs and Federal Reserve support whereas Chinese markets does not have the same and it is highly communalised.

E. Chinese markets are generally the major exporter where as United States markets are not as exporter as China.

These are having positive and negative impact on the overall globe as well because recently it can be seen that there is a trade war which has started between United States and China and that has implications on the overall global economy and that could be visible through poor performance of stock markets and there can be positive arising out of a high level of competition between these two markets