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China 's Currency Manipulation And World Trade

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China’s Currency Manipulation and World Trade
Part 1 As consumers, we all live in a society where our needs and wants are the drive for our consumption of certain goods and services. At this point elements of supply and demand are factored into the equation: in order to supply some goods and services that are being demanded countries rely on importing and exporting. To obtain these goods and services some form of compensation/ incentive is needed. Conducting trade by means of barter is not very practical in most circumstances and today’s society. So we use money. Different countries use different forms of money: the Dollar in the United States of America, the Euro in Europe, the Pound in The United Kingdom and in China the Renminbi .What happens when countries who want to trade with each other use different forms of money, when their units of monetary exchange are not the same? Common sense would tell the buyer to exchange their currency to match that of the sellers, and so they do so.
In 2013, America imported over 440,433.5 million dollars’ worth of goods from China but only exported 122,016.3 million dollars. (U.S. Census Bureau Foreign Trade) If America and other countries trade so frequently with China and rely so heavily on Chinese manufacturing, production, and innovation, then the aspect of currency manipulation within China and its potential negative effects on world trade is a very significant topic of importance and reason to research the subject. Our
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