What does the writer mean by competitive devaluations

Assignment Help Business Economics

Reference no: EM131193711

In August of 2015 after the Chinese central bank, the People’s Bank of China (PBC) moved to decrease the value of yuan in exchange for the dollar, a column in Wall Street Journal offered this opinion: “China’s trading partners are right to suspect that the real purpose of the so-called reform is a competitive devaluation that boosts Chinese exports and growth at the rest of the world’s expense”. The Republican presidential candidate Donald Trump has made similar comments during the current presidential election, calling the Chinese government a “currency manipulator”.

What does the writer mean by a “competitive devaluations”?

How would such a devaluation boost Chinese exports and growth?

Why would a boost in Chinese exports and growth come at the rest of the world’s expense?

Is there evidence that the Chinese are undervaluing their currency?

Reference no: EM131193711

Questions Cloud

Determine the cardinality for region : Construct a Venn diagram and determine the cardinality for each region. Use the completed Venn Diagram to answer the following questions.

What are the companys variable expenses per unit : Steeler Corporation is planning to sell 150,000 units for $2.90 per unit and will break even at this level of sales. Fixed expenses will be $93,000. What are the company's variable expenses per unit?

What constitutes a peer-reviewed source : Create a wiki that defines, identifies, and clarifies what constitutes a peer-reviewed (i.e., scholarly) source.this document should provide a clear understanding of the criteria that must be met in order for a source to be considered peer-reviewe..

Higher population growth in country : Countries A and B are exactly similar in terms of resources and technology. Still country A reported a higher growth rate than country B last year. Which of the following can explain this anomaly? I. higher population growth in country B II. favorabl..

What does the writer mean by competitive devaluations : In August of 2015 after the Chinese central bank, the People’s Bank of China (PBC) moved to decrease the value of yuan in exchange for the dollar, a column in Wall Street Journal offered this opinion: What does the writer mean by a “competitive deval..

Prepare a income statement and balance sheet : You are required to prepare a 10 column worksheet, income statement and balance sheet using the unique series of business transactions contained in the attached dataset

How you would apply the steps for resolving a moral dilemma : Resolving a Moral DilemmaConsider an unresolved moral dilemma from your personal life or a moral dilemmafrom newspapers, magazines, or movies(just choose one). In200 words, explain how you would apply the steps for resolving a moral dilemma that a..

Discuss some of the benefits and costs of globalization : Discuss some of the benefits and costs of globalization for the U.S. economy. How should the U.S. respond to the challenges of globalization? In the short run and long run, how has globalization affected the conduct of monetary and fiscal policy in t..

Fixed focal length f to focus : In order for a film camera with a fixed focal length F to focus on an object located a distance x from the lens, the film must be placed a distance y behind the lens. F, y, and x are related as follows

User Account

All Pages