Why is china trying to hold down the value of the yuan

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Reference no: EM131277898

1. Why is China trying to hold down the value of the yuan? What evidence suggests that China is indeed pursuing a weak currency policy?

2. What benefits does China expect to realize from a weak currency policy?

3. Other things being equal, what would a 27.5% tariff cost American consumers annually on $200 billion in imports from China?

4. Currently, imports from China account for about 10% of total U.S. imports. A 25% appreciation of the yuan would be the equivalent of what percent dollar depreciation? How significant would such a depreciation likely be in terms of stemming America's appetite for foreign goods?

Reference no: EM131277898

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