How china is able to keep its currency at loe exchange rate

Assignment Help International Economics

Reference no: EM13182857

In March of 2012, President Obama signed a trade bill into law that will punish China for keeping the value of its currency, the yuan, artificially low. According to Reuters,

A U.S. trade bill targeting Chinese imports goes against international rules and Beijing will not adjust the value of its currency to try to bridge a trade deficit that is Washington's problem to fix, China's commerce minister said on Wednesday.

President Barack Obama is set to sign the bill into law to allow duties to be imposed on subsidized goods from China and Vietnam, which the White House says will protect American jobs.

Using two supply and demand graphs, one for the market for yuan in the United States, and one for the market for dollars in China, show how China is able to keep its currency at an artificially low exchange rate. First, show the effects of an increase in the U.S. demand for Chinese products. Next, on the same graphs show how the Chinese government counters this so that the value of its currency remains stable.

Reference no: EM13182857

Questions Cloud

Find out the ml koh needed at the equivalence point : Determine the mL KOH needed at the equivalence point and the ph upon the addition of this volume of KOH.

What percentage of returns were greater : The historical returns on a balanced portfolio have had an average return of 12% and a standard deviation of 18%. Assume that returns on this portfolio follow a normal distribution. Use the empirical rule to answer the following questions. What p..

State pressure based constant use ideal gas equation : Since you need pressure based constant use ideal gas equation (PV=nRT) to convert moles of gas into pressure with units of atmospheres. R=0.0821 L atm/mol K

Compute the number of moles of acetic acid : Calculate the expected pH of the buffer after the addition of 1.0 mL of 1 M HCl. Remember that you are using 50 ml of the buffer so be sure to calculate the number of moles of acetic acid

How china is able to keep its currency at loe exchange rate : Using two supply and demand graphs, one for the market for yuan in the United States, and one for the market for dollars in China, show how China is able to keep its currency at an artificially low exchange rate. First, show the effects of an inc..

State the balanced molecular equation : Write the balanced molecular equation using K+ and Cl- as the spectator ions. If you were to balance the following equation that occurs in basic solution, how many electrons are being transferred overall?

State the pressure increased as the gaseous reaction : The pressure increased as the gaseous reaction PCl5 1 PCl3 +Cl2 occurred. When equilibrium was achieved, the pressure in the tube had increased to 1.25 atm. Calculate Kp.

Calculate by how much the value of the financial securities : This line is aimed at the low end of the market and isn't constructed on a wheel base. Writing instruments. This line includes mechanical pens and pencils which are sold to the middle-market segment between the low-end products such as Bic and hi..

State the concentrated chemcal molarities : Use the concentrations given below for the concentrated chemcal molarities and write out your calculations to obtain the volume of each stock solution needed to obtain 30.00 L of a 6.00 M

User Account

All Pages