Comparative Advantages and gains from Trade

Globalization is “a complex of separate but integrated trends,” including computer and information technology, reorganization of work and corporate decision making, decline of the nation-state’s role in the international economy, ascendancy of service over industrial employment and privatization. Whereas, urbanization usually refers to the changes in the proportion of the population living in urban places, that is, the process of people moving to cities or other densely settle areas. Although scholars agreed on the basic definition of these terms and how both processes generally occur, a consensus has yet to be reached on why the process has taken place.

In regards to globalization, the economic transformations and political assaults that are a result have plunged certain Black Americans into a new nadir. The principle concern with urbanization is to identify problems and concerns that could be solved based on the causation of agglomerations of various sizes and numbers and the association of population concentrations with other elements of social and economic change. Thus the basic premise of this article will work in the same way i.e., when Black entrepreneurs react to globalization, major changes in urban problems and concerns should occur. As a result, this article will outline reorganization of entrepreneur activities, trading demographics and inter-relationships for Black American business opportunities in China.

For this purpose Sino-Black Trade Enhancement Program (SATEP) will be defined as a vision that converge Black entrepreneur and Chinese private industries business opportunities that can be transferred from domestic to global production and service distributions. Therefore, this article will contribute to the current discussions on economic empowerment in terms of mobilizing social, financial and institutional resources to assist in the growth of Black American business opportunities in two ways: by offering strategies on how to promote business opportunities for Black entrepreneur; and by offering economic incentives to encourage collaboration among Black entrepreneur and China’s private industries.

Historically, Black entrepreneurs have used two main strategies to amass capital: (1) promote “buy black” campaigns; and (2) mount mass campaigns to force concessions from government and white controlled corporations

(Cha-Jua and Lang 1999, 12). Consequently, there are six reasons to explain the comparatively low numbers of Black entrepreneurs: (1) young Blacks have less exposure to entrepreneurial role models; (2) Black entrepreneurs have fewer informal and formal networks for securing key resources and information; (3) lower net worth, fewer assets or less access to capital; (4) greater influence by the family on the amount of capital they can use to invest in their business; (5) fewer years of “hands on experience” and business experience; and (6) too many Blacks have not put the proper amount of time into their businesses (Fraser 2003, 683). So this article will focus on the first point, i.e. young Blacks have less exposure to Afro Asian entrepreneurial role models in China.

Business solutions should be designed to outline specific product/services suitable for Afro Asian parties. Such collaboration is whereby Afro Asian established partners in the development in such areas as cultural awareness, patience with negotiating team and the development of personal relationships. These areas are necessary in order to protect what is seen as business challenges and to achieve a pattern of product/services that support Afro Asian entrepreneurs easy access to the global arena. An alternative method along with the support of Chinese private industries maybe pursued through desirable growth controls, public acquisition and/or public capital investment. Therefore, this article will argue that business solutions between Black entrepreneur and Chinese private industries should be utilized to benefit Afro Asian communities. Only through an analysis of this economic concept and other factors could a recommendation on Black business opportunities be utilize.

Too often in this global market, economic inequality and small business failures are seen as inevitable and the work of SATEP is to create solutions of emerging patterns and ease the problems of diaspora and business opportunities as it occur. Hence SATEP should follow what is known as the “comparative-advantage-following” (CAF) strategy and shift away from previous two main strategies to amass capital. This is the shift in development strategy from one that defies comparative advantages to one that fully utilizes them, than rapid economic growth is the result (Fang and Shiu 2004, 285).

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