Research on bilateral trade between india-china in raw cotton commodity
Research on bilateral trade between india-china in raw cotton commodity
Academic Level: –
Volume of 20 pages (5500 words)
Assignment type : Thesis
1.2 key 1words
1.3 Important of study
1.4 Objective of study
Background and Significance
1.4.1 Bilateral trade between China and India statistically
1.4.2The international situation with cotton
1.4.3Cotton trade between India and China
1.4.4 Threats to the cotton bilateral trade between India and China
1.4.5The rough road gaining up on India
1.4.6Outcome on value
1.4.7 Diminishing produce
Chapter 2 Literature reviews
Chapter 3 Research methodology
3.1 In both a qualitative and quantitative research
Chapter 4 Data analysis and Result
Chapter 5 Conclusions
Cotton trade between India and China
There are a number of political as well as technical obstructions that hinder direct trade between China and India. However, some Indian produces still find their way into China via ports like those in Malacca as well as Indonesia (Beckert, 2015 ). It is vital for the large amounts of Indian raw cotton to be imported into China via the intense density junk trade that takes place in the states neighboring the South China sea. This trade in raw cotton forms a portion of a multifaceted Indian Ocean trading ecosphere. Its presence proposes that the Asian cotton industry is far beyond integration. Since the eighteenth century, the value for the raw cotton as well as its satisfactory quality plainly united to kindle increased Chinese interest in provisions of raw constituents from western India (Warmington, 2014 ). As a result, cotton from India fast turned out to be one of the essentials of China with the Chinese preferring it over silk for the typical use, as an affordable as well as lovelier wear. Prices in locally grown cotton continue to rise in China because of the food scarcities that continue to see more agricultural land under cotton being turned into grain producing areas. Due to this, Indian raw cotton has proven to be meaningfully inexpensive, in spite of the accumulation of freight, stuffing, as well as operation charges. Raw cotton is one of the major produce flows amid China as well as India. However, Britons in collaboration with Indian traders sometimes dominate the trade in raw cotton with occasional intermittent involvements from American traders (Beckert, 2015, pg. 11).
Threats to the cotton bilateral trade between India and China
According to Cheru (2016), as a result of the reducing produces in cotton making, India possibly will turn out to be an importer within three to four years from the planet’s second chief exporter of cotton. As a result, India’s fabric mills may be put in rivalry through the highest distributer of cotton, China, aimed at provisions of cotton. Regardless of the domain of property under cotton making increasing, the produce from cotton in India are roughly 475kg/ha, that is roughly 38% lower than the universal mean in the year 2010-2011 (Taneja, ).
Sunil Khandelwal, who is the CFO of Alok Industries claims that India’s biggest fabric manufacturer through incomings, the good’s production, shall get to the high crowning of approximately 6,000,000 million tons come the end of 2017 before starting to deteriorate. As a result, the textile manufacturer will be forced to use synthetic fibers or alternatively result in using exclusive imported cotton. When compared to other chief agronomists, cotton plants in India are positioned extensively for the reason that their hand picking system is superior to theirs e.g. the United States as well as Australia. These states have machines for cultivating cotton. Nevertheless, due to land limitations, acreage is limited. Additionally, instabilities in weather in addition to prices as well as the régime who remain forcing all agronomists to produce additional food instead of cash harvests like cotton, so as they can edge the dashing food price increases. China as well as India mutually use up sixty percent of our ecosphere’s cotton yield. In 2010 and part of 2011, cotton was the top produce of execution (Taneja, 2017 pg. ). However, because of the rivalry in supply from cooling of prices, there has been an interesting notional interest.
The rough road gaining up on India
The international market stake when it comes to the export of fabric in China, which is the ecosphere’s biggest exporter of fabrics, is around thirty percent when that of India is at five percent. Setting China aside, India competes globally with other Asian republics like Pakistan as well as Vietnam in the export of fabrics in addition to the United States plus Europe in the dissemination of clothing. Therefore, in the even that India turns into a complete cotton distributor, India’s corporations will need to contend with the corporations in China for provisions. As a result of the high probability of advancement in the local textile industry, the demand for cotton is likely to upsurge in India. According to Volkert (2014 ), come 2020, we are likely to be looking at 7,020,000 tons of cotton consumed by the textile industry. Over four years from 2010, the demand for cotton in India has risen through twenty-fiver percent. In the same year, China’s was using up 10,000,000 tons of cotton whilst producing just 6,600,000 tons per year (Volkert, 2014 pg.3).
Outcome on value
According to Florio (2016 ), due to the rivalry among the other Asian giants for raw cotton, the price of cotton in the international market is set to be explosive. At the side of this, aspects like the demand from the United states and Europe as well as the manufacturing of ordinary fiber in additional segments of our universe will distress its market value.
Production of the good when compared to other countries is less in India. The reason behind this is that they use the hand-picking system in cotton production requiring them to sow the plants away from each other. When compared to other countries like Brazil as well as Australia, they have a higher yield because of automated means of harvesting. Despite this factor, the other reason behind India’s little harvest are that the Indians depend on the monsoon falls, they have poor collecting skills as well as deficiency of irrigation amenities, paired with non-availability of superior seeds in addition to increasing pest outbreaks (Florio, ).
IV . Key Points, Difficulties in Study and Solutions to Take
Problem the main problem is India things china is stopping the exports from India and from china point of view India don’t have that much innovation and technology what china needed I want to do research in this consent and come what are benefit we can’t get by merging mouth the giant country’s
Objective of the study: my objectives will be what is the hole trade between this two country’s useful ness of this trade risk that we have to face vide scope of employment and how we can handle it free flow trade in commodity sector
• There is a great history between India and China when it comes to this trade.
• There are many opportunities created by the trade.
• The trade has huge benefits to both countries
• There are various challenges involved in the this trade
• The trade can be expanded and be a global or continental trade
This is both a qualitative and quantitative research and thus the methodology will take both approaches. Different methods of data collection will be used in this case where the main ones will be
This is a method of data collection that is based on reviewing data from various documentations. In this case, the method will be used to evaluate various studies done on the topic in order to gather more information on the topic. Some of the sources that will be analyzed include; journals, articles, books, magazines, documentaries, government documents on trade and any other relevant source that can provide information on the topic:
This will be another key method of data collection. Under this method, interviews will be carried out to the selected sample. The sample will be divided in three categories. Government officials, private companies that participate in this trade officials and the members of public who take part in the trade.
Different questionnaires will be provided where the selected sample population will be expected to answer various questions.
Data analysis: I am going to use some of the software like spss to analyze my data
Difficulties in Study and solutions
There are various challenges intended to be encountered and they are as follows;
• Lack of accurate information due to variation of methods of data collection. This problem will be solved through improving accuracy in data analysis method.
• Lack of study population consent. This problem will be solved through critical explanation of importance of the study before asking for consent.
• Tight time schedule. This will be solved through simplifying the work load.
Ⅴ. Thesis Workload and Schedule
November 2016 – December 2016 Preparation of data collection tools and sample identification
April 2016- July 2016 Data collection process
April 2016- July 2016 Data analysis process
August 2017 – November 2017 Compiling the research paper
Ⅵ. Intending Achievements:
• By the end of the stud, the research will come up with the whole concept on the trade between these two countries.
• Expose benefits of trade
• Discuss challenges
• Explain various opportunities created by the trade
• Explain how it works
• And finally describe the whole relationship of the agriculture sector.