Contact Us
Sign In / Sign Up for FREE
Go to advanced search...
Nobody downloaded yet

China Faces Pressure over Currency - Assignment Example

Comments (0) Cite this document
In the paper “China Faces Pressure over Currency” the author discusses the situation when china is refusing to let its currency the Yuan appreciate against the dollar. By having the currency artificially low gives China an upper hand by making its products cheaper in the US…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.8% of users find it useful
China Faces Pressure over Currency
Read TextPreview

Extract of sample "China Faces Pressure over Currency"

Download file to see previous pages Making its products cheaper in the US and thus encouraging imbalanced trade. It has been universally agreed that the free-floating Yuan would be significantly worth 15 cents.
Chinese economists feel that the impact has been over-exaggerated and particularly to America from Yuan revaluation. In particular, a stronger Yuan will not reduce the US’s trade deficit as there is a very smart segment of overlap between China and America Production and hence the US will not be able to replace Chinese imports. The consumer will end up paying more for imports from china or Vietnam and this would be like imposing a tax on US consumers.
The World Bank chief also disagrees with the US’s suggestion on China's currency rise and he feels that China should not be forced to let its currency appreciate it as a way of rebalancing the world economy.
Some analysts see this move as China’s principal weapon in an economic struggle for global ascendancy. China having the advantage of selling the goods and services at prices lower than the other countries and thus making the products cheaper in the US markets and this allows the Chinese firms to recoup and regain a bigger share in the global market and steal jobs from the US manufactures. If China agrees to revalue the currency would result from the American manufactures regain the lost edge.
In the long run, the US economy will benefit from this inevitable downfall. De-pegging will force the hand of US politicians towards realistic policies and the Chinese will come to their senses and eventually would do it on their personal interest. An even more important difference is that the stakes are higher with China. Japan seemed like a fearsome economic rival. China with its billion populations seems destined to surpass the US economic clout. (1). ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(China Faces Pressure over Currency Assignment Example | Topics and Well Written Essays - 2250 words, n.d.)
China Faces Pressure over Currency Assignment Example | Topics and Well Written Essays - 2250 words.
(China Faces Pressure over Currency Assignment Example | Topics and Well Written Essays - 2250 Words)
China Faces Pressure over Currency Assignment Example | Topics and Well Written Essays - 2250 Words.
“China Faces Pressure over Currency Assignment Example | Topics and Well Written Essays - 2250 Words”.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF China Faces Pressure over Currency

Why China wants RMB currency undervalued

China has adopted a policy of intervention to control the appreciation of its currency, the renminbi (RMB), against the dollar and other currencies. This policy measure is heavily criticized by most of its trading partners, especially the United States (Morrison and Marc 1).China's policy of pegging its currency against the U.S. dollar has resulted in severe devaluation of RMB. This undervaluation gives RMB an unfair advantage over competitors in exports. Critics argue that this policy has resulted in China's huge current account surplus, and global trading imbalance (Chen and Mai 4).Some analysts argue that China makes a deliberate effort to manipulate its currency in order to get an unfair trade advantage over other trading par...
11 Pages(2750 words)Essay

Analyze the debate over currency wars

...?Analyse the debate over currency wars Currency wars occur when countries deliberately try to lower the exchange rate of their own currency in order to assist the development of their home industries, especially in the world market. The most common example of a currency war in today’s time is the undervalued exchange rate of China’s currency, particularly in relation to the U.S. dollar. This issue has been the object of much debate over the last few years. Thesis China, since 2003, has been manipulating its exchange rate to keep its currency undervalued. It has been selling its currency and demanding more of foreign currency. This policy kept China’s currency weak and supported its exports artificially by making them cheaper in the foreign...
4 Pages(1000 words)Essay

Primark faces inquiry over use of illegal labour 'Research proposal'

...?Primark faces inquiry over its use of illegal labour Research Proposal Introduction to the problem: Living ethically has become socially and morallymore acceptable in the world today. A few decades ago, people only cared about their own well being and did not look into the methods and ways through products were being manufactured. As the awareness is increasing, there is a new trend emerging as shown by the consumer behaviour studies and researches. Ethics in business has taken prime importance for the consumer of the 21st century. More and more customers are inclined towards using the product that is being produced ethically, maintaining quality standards, meeting labour standards and fulfilling all the responsibilities of a citizen...
5 Pages(1250 words)Essay

Peer Pressure

...?Peer Pressure My first interviewee was a fifteen year old boy. When I asked him about the most significant challenge that he faced, he whispered in my ears that he was dealing with the psychological trauma resulting from gynecomstia, a condition in which some boys grow excessive breast tissue during puberty because of hormonal imbalances that makes their chest resemble that of females (Braunstein, 1999). The boy said that he was teased by his class fellows in school who pointed fingers towards his chest and sidelined him as a girl. He was too sensitive to the mockery and was starting to get into social exclusion because of that. He told me he preferred to avoid too much interaction with his class fellows because if he did not, he would...
2 Pages(500 words)Essay

Will China revalue its currencyCauses of devaluation Mechanisms Implications

...?Running Head: ABBREVIATED OF YOUR CHOICE (all caps) and Section # of Will China Revalue its Currency Introduction China has revalued its currency at many occasions since the beginning of economic reforms in 1979. It follows the laws of the fixed exchange regime where the currency is devalued and revalued at will. For years, China maintained a fixed exchange rate; allowing to appreciate at its will. It has, now and again, manipulated its currency to gain a competitive advantage in the global trade market; and it has allowed China to maintain supreme dominance over the world markets. Nonetheless, the country has been facing immense pressure since a decade to float the currency in the open market and allow the currency to appreciate...
5 Pages(1250 words)Essay

Faces of Power

... of confusion. However, the most common structures of power include; institution of property, nation-state, knowledge structure, financial structure, production structure (Productive power) and the security structure (Susan, 2004, 64). With these many structures, some of which are not related or similar in any way, it is quite hard for most people to lean upon two or three forms/faces of power alone. However, out of all the faces of power established, Lukes’ seem to have had a great impact and they still are today; reflectively, between January 1975 and June 2006, more than 1200 journal articles cited his article, an impressive figure by any standard and surprisingly after this Lukes was asked to do a second edition. It has been over thirty...
6 Pages(1500 words)Essay

Currency Forward and Currency Futures

Companies having a global presence hedge their positions by entering into currency options or forwards or futures. This keeps the revenues of the company intact and also caps the number of its currency outflows. In the event of any adverse movement in the foreign currency receivables, the company can exercise the forwards or the options. If a company having dollar receivables is afraid of strengthening the domestic currency against the dollar then by taking the desired position in dollar futures the company can keep the value of its receivables intact. All these financial instruments have their own set of merits and limitations. In the following paragraphs, these instruments have been discussed with various examples that will give...
7 Pages(1750 words)Coursework

Currency War of China

In connection to this, this paper provides detailed information on the effects of World War II to China’s currency. In doing that, it expounds on the Japanese presence in China and their effect on the economy as well as how the war between the Chinese currency and Japanese currency led to confusion of China’s currency. It also details on the activities that were carried out by the Japanese and their effect to China. The paper also expound on how silver affected the economy of China alongside explaining how the U.S. control of IMF led to currency issues in China. The paper expound on not only the effects of Cultural Revolution in 1966, but also on the effects of Post-Bretton Woods. Additionally, the paper also provides detailed inf...
19 Pages(4750 words)Research Paper

Three Faces of Eve

... In the movie “The faces of Eve” the main heroine Eve White is suffering from dissociative identity disorder. It becomes evident when her personality splits into two which are symbolically called Eve White and Eve Black. The protagonist, Eve White, is a humble, traditional and a very reserved housewife. Her role of a mother and a wife and her conservative education serve as limits for her self-expression. However, unexpectedly for herself she starts suffering from terrible headaches and loss of memory during some episodes. The psychiatrist to whom she addresses with her complaints notices her timid character and understands that Eve White suppresses most of her instincts and emotions. Trying to fit in the image of perfect woman Eve White...
2 Pages(500 words)Essay

Bringing China out of Recession Through Currency Depreciation

... of a beggar-thy-neighbor policy. Currently the value of the yuan is confronted with two most important challenges. Due to the allegations from the US China faces the pressure of appreciating its currency whereas in the domestic front the yuan is depreciating. The factors for this are as follows: China actually limits the free exchange of foreign currencies. Both the income of foreign exchange earned by the exporting companies as well as the foreign investment in foreign currencies has to be dealt with to the government. The government will in turn make the payment for those foreign currencies in its domestic currency that is yuan. Till today the government of China has gathered more than $2.4 trillion value of foreign currencies...
9 Pages(2250 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic China Faces Pressure over Currency for FREE!

Contact Us