China Faces Pressure over Currency - Assignment Example

(US Government Spending) Not just the rising debts, but the economy also faces the difficulty of constant budget deficits which means the outlay of the United States government is greater than the receipts and this means that the US government has to search for sources to raise the finances.... Not just to finance the budget deficit, the government also faces difficulty in raising the money to service or repay their previous loans....

dollar has remained the dominate currency considered the global reserve currency with most exchange transactions being against the U.... dollar might lose its position as the main reserve currency (“General Assessment of the Macroeconomic Situation” 2009).... Investors went ahead and revisited their currency reserve investment.... Therefore, the dollar has been experiencing great pressure from major investors mainly due to the inflations that have occurred since the dollar became the world's reserve currency....

currency is a standardized form of money which facilitates wider exchange of good and services.... China had conquered the market of many types including electronic toys, utensils, plastics products and many more, all over the globe.... But every individual living in this world knows that china has been the vanquisher of the world's markets for many years.... china is a global source for the commodities nowadays and is focusing to improve their international trade....

and its implications on its currency's exchange The fall in income earned by the consumers in the U.... The exchange rate is the relative price of a currency against other currencies.... The exchange rate is typically driven by the demand and supply of the currency.... As consumers will use less of the local currency due to fall in their income it suggests a lower demand for it as less money will be spent on imported goods and services therefore its supply dampens....

Besides this, the United States of America has long held the view that the Chinese government manipulates its currency, the Renminbi or Yuan, so that its export industry remains competitive.... Country Assessment of China China is one of the fastest growing economies in the world, and is predicted to become the world's largest economy sometime over the next century.... The managers of most large Chinese domestic firms are linked in some way to the ruling Communist Party, and the government often places pressure on businesses to go a certain way (WorldBusinessCulture)....

As such, evaluating the strength of current… Although there are many means of measurement with regards to the way in which a firm can seek to address current and future strategic needs one f the most effective is with respect to performing a PESTEL analysis; weighing the unique threats and likely impacts of Political, Economic, Social, Technological, and Legal effects that the firm faces and could likely face in the future....

The main purpose of this research paper is to find out how china is shaping up the world through its economy and its impact on other countries.... china has one of the largest economies in the world and always attracts interest from other countries in terms of investment.... hellip; According to the research findings, it can, therefore, be said that labor attracts investment from around the world and most American companies; for example, Dell has started assembling its product in china....

The population of migrant employees from China's countryside is over 150 million, and their living conditions are still dire, especially as far as social security is involved.... The country's declining natural resources are putting under significant pressure to produce for its rapidly growing population and industrial needs.... china's problems are emblematic of those faced by developing countries but with a particular feature of its size, its social and political model and the pace at which it has achieved takeoff (Chen, 2011:35)....