ECN215 Economics Discussion Post

Countries, such as the United States, have expressed concern that China artificially devalues its currency. The concern is the devaluation puts an automatic discount on Chinese-produced goods, giving Chinese producers an advantage in international markets.

  • Evaluate the effect an artificially low exchange rate has on both China and the countries it trades with.
  • Discuss the benefits to a country of having a strong currency.
 

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