Manage Economic Trends in the Global Market

Manage Economic Trends in the Global Market

Major Assignment

Extending almost six and a half thousand kilometers, the Silk Road (also know as the Silk Route) is a series of trade routes that were used from 202 BC to 220 BC from Europe through Egypt, Somalia, the Arabian Peninsula, Iran, Afghanistan, Central Asia, Sri Lanka, Pakistan, India, Bangladesh, Burma, Java-Indonesia, and Vietnam until it reaches China. The Silk Road has both land routes and sea routes. Recently, trade alone the Silk Road has returned. Trade has begun in Damascus, which is the final point on the Silk Road many centuries ago. Trade has also return from Arab traders in Yiwi, which is the largest wholesale market in the world.

Trade between China and the Arab World has been heavily increasing over the past few years and looking like it is only going to get growing in the future. Last year alone, trade between the two nations grew a massive 14 per cent. After adding this growth the total trade value was worth about US$222.4Billion, which are record-breaking numbers. This came in the form of Chinas exports to the Arab states US$91.4Billion and Chinas imports from the Arab world US$131.1Billion. This shows a trend in trade between the two nations, this is very positive for future trade. In 2007, Economist’s believed that by the year 2015, the total trade value between china and the arab world would reach $US100Billion. Obviously all expectations have been exceeded. This just shows how quickly trade has grown.

A petrodollar is a US dollar that is earned by a country for the sale of oil to another country. The term "petrodollars" was coined when the price of oil rose sharply in the 1970s. It resurfaced in the new millennium, when prices rose once again. Although petrodollars initially referred primarily to money that Middle Eastern countries and members of OPEC received, the definition has broadened in recent years. The Arab Petrodollars are being spent and invested in the US....