Economic Analysis About Facebook in China

Economic Analysis About Facebook in China

Trade Restrictions

From the time of its initiation as an affiliate of the World Trade Organizations, China has continually limited the numerous administrative barriers that hinder its foreign trading structure. For instance, the country has put in place useful standardization of goods and services. Besides the comprehension of CCC certifications, an incorporate like Facebook still has an obligation of ascertaining other relevant requirements. It mainly emphasizes on internet and telecom related services. Labeling and Trade descriptions is another trade restriction that directly influences the introduction of Facebook in China. According to the country’s policies on foreign trading, every good or service accomplishments in China has to undergo product description and labeling in Chinese language (Peng, 2015). It includes a precise delineation of the type of service, production date, specifications and any explanatory cautions that points out any potential unforeseen threats of using the given function. Somewhat, it is a real trade restriction that would influence the success of Facebook.


Inflation Rates

Introduction of Facebook in China relates to the ever-changing inflation rates in the country. For example, an upsurge in the interest rates directs more of a negative impact on the overall output and investment as well. Both the two factors are known to unfavorably impact employment, hence leading to an increasing in labor feuds. Therefore, the higher the rates of inflation, the more enterprises in China continue to transition their prices. Generally, inflation rates are found to influence both the exchange trade and foreign trade (Garnau et al., 2015). It is thus optimistic that should China allow for the introduction of Facebook; the internet service provider would face less competition from a global economic perspective. As the prices of the domestic services heighten the demand for Facebook services as a substitute, it is likely that the country’s currency would also diminish. Hence, it impacts the exchange rate.



Garnaut, R., Song, L., Cai, F., & Johnston, L. A. (2015). China’s domestic transformation in a global context.

Peng, X. (2015). Financial theory: Perspectives from China.


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