Please answer the following. The U.S. government has accused China of currency manipulation by fixing the exchange rate. The government claims that by fixing the exchange rate, China has increased exports and decreased imports. Some people claim that is one reason for the job loss in the manufacturing area in this country. Do you agree with this assessment? Alternatively, do you think that there other underlying reasons for the huge trade gap between the U.S. and China? Should the U.S. government retaliate by fixing its own exchange rate or let the law of supply and demand take care of the exchange rate (floating exchange)? Discuss your reasons by using the concepts that you have learned from this chapter.

Please answer the following. The U.S. government has accused China of currency manipulation by fixing the exchange rate. The government claims that by fixing the exchange rate, China has increased exports and decreased imports. Some people claim that is one reason for the job loss in the manufacturing area in this country. Do you agree with this assessment? Alternatively, do you think that there other underlying reasons for the huge trade gap between the U.S. and China? Should the U.S. government retaliate by fixing its own exchange rate or let the law of supply and demand take care of the exchange rate (floating exchange)? Discuss your reasons by using the concepts that you have learned from this chapter.

Foundations of Business - Standalone book (MindTap Course List)

4th Edition

ISBN:9781285193946

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Chapter3: Exploring Global Business

Section: Chapter Questions

Problem 17CC

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