Question

In the history of international business, why does the saying "all roads lead to China" have relevance within the international trade system?

Answer 1

Answer:

All Roads Lead to China

Explanation:

When you look around, you will find things from smartphones to shoes to handbags etc. all are made in China. Local manufacturers all around the world face enormous competition form China.

The question is how China is making a name for itself in every market of the world. They follow a strategy called "dumping" they seduce the local customers by providing them with the same products at considerable low prices. their strategy is to keep the prices low until they obtain a considerable amount of market share and after that they force the competitors which are mostly the locals of the country out of the business.

Another reason why China is so successful in achieving this is their government is centralized. And that centralized government encourages exports and discourages imports.

Moreover, China has cheap labor and reverse engineering is also playing its part in all roads leading to China.