China may emerge as the world's largest economy by 2020 Essay

China may emerge as the humannesss largest economy by 2020 - Essay ExampleTherefore, by 2020 China get out have greatest influence on the world trading system. China will be the largest exporter and importer of goods in the system. As of now the export market of China is focused on application intensive products. But by 2020 it will consist of even hi-tech goods. As a result, the lot of other major economies, mainly United States and Europe will considerably reduce. Impact on world monetary system China had already raised voice against Dollar being dominated in the world monetary system. The main reason for this uproar is that China holds the worlds largest forex reserves. Moreover, China wants to outgrowth the international agency of its own currency, the Renminbi. The chance of Dollar getting replaced by Renminbi is very minimal. But the role of Dollar as a common gag rule currency will significantly reduce. China will emerge as the largest consumers of many commodities and goods. Therefore, the chance of Yuan getting internationalized is practicable at least for settlement of the goods for which China is the largest consumer. (Kelly, 2009) Impact on the business strategies of Europe and US based multinationals Chinas ontogeny as the largest economy by 2020 will force many multinationals to rethink on their global strategies. The primary(a) area to be focused is the pricing strategy.