Trade Fairs and Their Role In Promoting the Economy

来源: CHINA FOREX 2020 Issue 4 作者:Bao Ge

In contrast to consumer fairstrade fairs and expositions are professionally organized to help companies demonstrate their latest products and services. Trade expositions are primarily attended by company representatives. Meetings with suppliers and customers spur more comprehensive competition among rivals and they are a handy tool for determining the latest market trends.

Trade expos have a long history. Along with the rise of merchant capitalismEuropean countries began holding trade fairs and these spread across the continent. Initiallycraft goods and agricultural produce were the mainstay of trade fairs. From the late eighteenth centurydriven by the rapid development of the Industrial Revolutionexpositions in Western Europe and later in North America became even more common. Some goods made in China were also shownbut few of them included anything with known brands.

As the use of electricity became more common and spurred industrializationmanufactured goods were classified into sub-categoriesand trade expos were upgraded into a professional activity. In the beginning of the 20th centuryspecialized exposition organizers emerged to host trade shows. Convention centers were built as venues that provided a rotating calendar of trade shows.

Since the 1990sglobalization has developed and international trade has become more closely integrated with foreign direct investment. So-called vertical FDIa popular academic definitionhas been growing rapidly during the past 30 years. Meanwhilethere was a rapid expansion of global tradeparticularly in East Asiaincluding China. In 2001China officially joined the World Trade Organizationspurring the Chinese economy. China ultimately dominated the exhibitions industry in Asiaaccounting for more than 55% of all trade space sold in the Asian region in after the global financial crisis.

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