The impacts of China and India's rise on global trade governance

They are some of the largest emerging economies in the globe. As such, China and India are the examples of the Asian countries in the world which have used their powers, machineries and brains to maximize the trade tariffs given and the removal of the trade barriers to protect and excel in their art of commerce. This paper seeks to discuss the effects of the rise of China and India on the global trade governance. To mention, China and India are Asian countries whose global stand have been facilitated by their manufacturing sector, mechanization of trade and political powers which promote infrastructural development and human rights. The political powers of these nations devise policies which facilitate the creation of markets for their goods and services, privatization of institutions to create a competitive edge for their goods and services, regulation of the financial institutions and the creation of employment to their citizens.

However, the two countries have used different methods for economic growth and global change. For instance, China maximizes on the division of labor while India uses stand alone systems for its economic excellence. Presently, China’s economy is the second largest in reference to the global records. This has led to the increase in the world’s economic growth. On the other hand, the rise of these two Asian nations made it easier to manage the economies of the world. Also, the management of the economy can be dictated by the monetary capabilities and the strength of the country’s currency. A currency that has an international presence places the country in a global limelight. Although the Indian Rupee and the Chinese Yuan are weak compared to the currencies of other states such as the United States dollars, their values, compared with the currencies of the developing nations have enhanced trade activities in the globe.

It is also important to note that although these two countries tend to manage the world’s economy, their economic path is not the same. Every country has its own way of achieving its competitive edge. The rule of law in trade governance can be explained that the government of the nations imposes rules and regulations which moves in tandem with the policies of most entities, thus, facilitating the art of exchanging goods and services between and within nations. There are some countries such as India which have a highly regulated labor laws in all its operations. Some of these regulations dictate the employees’ working hours and their remunerations. This ensures that the optimal productivity of the firms increases and the workers remain motivated in their work environments.

Work satisfaction and contentment of the employees is a cornerstone of productivity and the performance of global trade is measured on productivity (Bussière, & Mehl 2008). For instance, it borrowed the principle of transparency from the world health organization to conduct its state functions (He, 2016). This led to transparency in the government institutions. It is true that the government sensitized its citizens on the importance and use of the WTO. When the citizens leant on the loopholes of trade as enshrined in the principles of the world health organization, the art of commerce increased considerably. In most cases, the government agencies are created to enhance and facilitate the country’s trade quality. Therefore, power relies on global institutions and the adherence and conformity with the required policies and regulations.

These countries also have well-laid strategies for conflict resolution. For example, China and India are at the forefront in the global peace-making activities under the umbrella of the United Nations. Their activities include human rights activism in the war areas and they have also designed conflict resolution mechanisms. Also, the state of a country’s military prowess dictates its global governance. Social interaction promotes global trade governance when standards, skills and competency are taken into consideration. This also captures the lines of wealth, status and power. Every group uses its capability to function. All in all, the rate of poverty has decreased in India, thanks to the global trade governance. In an attempt to remain relevant in the international trade and the rise of China and India, the environment is at stake.