Chinese currency, the yuan, has been the subject of a dispute between China and its trading partners (especially the U.S.), who accuse China of manipulating its exchange rate to make its exports artificially cheap. They see the yuan as an unfair weapon in the international competition. Chinese officials said that the attacks were groundless: the yuan was undervalued, at least significantly. Binding contribute to the maintenance of a stable economic environment that is beneficial for all economic partners. They also said that if the U.S. launched a large trade deficit and the budget, this was partly due to the influx of capital from China. U.S. should focus on the weaknesses of their economies, which are generated by these deficits, instead of treating China as a scapegoat. Officials also said that China is a sovereign nation with the right choice of exchange rate policy. During 2005 to 2007, the discussion was regularly in the news, and it is likely that the arguments would be strengthened if the U.S. and European trade deficits with China continues to increase. This is a matter of economics and business, the introduction on the cash economy and demonstrate the practical application of the monetary policy and the exchange rate that are relevant to business decisions .. «Hide
by Ka-Fu Wong, KS Fung, Ricky Lai Source: University of Hong Kong, 22 pages. Publication Date: January 24, 2008. Prod. #: HKU710-PDF-ENG
Related Case Solutions & Analyses:
The Park Hotels: Designing Experience
Generation Investment Management Video
Friend Bank: The Time for Hope (Abridged)
Bringing Open Innovation to Services
The Pacific LNG Project
Magna International Inc. (B)
Fiscal Policy and the Case of Expansionary Fiscal Contraction in Ireland in the 1980s
Central America: Strategy for Economic Integration
Summit Distributors (A)
Claims, Litigation, Settlements, and More Claims!
