Chinese Enterprises Face Changing Environment

Introduction

With the development of trade globalization, international trade becomes more and more frequent. At the same time, the competition among nations gets fierce day by day. Chinese businesses have to take effective measures to cope with the changing environment and boom its own nations.

The allocation of resources in Chinese economy

Chinese economy is concerned with the economic system through which societies are attempt to meet people’s material needs and wants through the production of goods and services. Due to people’s high wants, there is scarcity of natural resources. In order to satisfy human’s needs and enhance economical growth, making good use of both domestic and global resources is an essential way.

There are three aspects to this problem. First of all is what goods and services will be produced. This will depend on what consumers want to buy, and what they will pay for each product or service, that is, demand and supply. If the demand of a good is too high, the supply of the good will be insufficient. Resources are limited, so it is important to take measures to keep balance between supply and demand and get equilibrium point of the market. In the second place, the point is how will these goods and services be produced. After deciding what to produce, it is then necessary to choose the most appropriate and efficient production methods and technology. Companies should choose about who will produce the goods and services and what mix of resources will use. To make resource utilization efficient, the costs of resources should also be guaranteed. The third step is to whom will the goods and services be distributed. This is the problem of distribution of income among households and among various social classes and groups. Some goods and services should be provided free by the state and social needs for unexpected needs in the future. In addition, the government should make good use of resources according to abundant resources distribution...