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Have you ever wondered what happens to a U.S. exporter when the value of the U.S. dollar drops? Is it good for the exporter? or is it bad for the exporter? ... think for a moment... Welcome to Foreign...

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Have you ever wondered what happens to a U.S. exporter when the value of the U.S. dollar drops? Is it good for the exporter? or is it bad for the exporter? ... think for a moment...

Welcome to Foreign Currency, Currency Exchanges, and Currency Valuations

Watch this video, take some notes.

https://youtu.be/ezY33u8V8V8

Assignment Instructions and Requirements

Ready? After you watch this video, for this assignment I'd like to hear your perspective ( Yes, your own Balcony View) regarding a real-worldcase involving How China is managing the value of its currency; then answer these questions:

1- What do you think about China's currency manipulation? If is good or bad for us here in the U.S.? why or why not

2- What would be the implications for American businesses and exporters if we lower the value of the U.S. dollar?

3- What would be the implications for American businesses and exporters if we increase the value of the U.S. dollar?

250 words

Answered Same Day Jun 23, 2022

Solution

Rochak answered on Jun 23 2022
91 Votes
China manages its cu
ency a bit differently than other nations, by controlling the forex rates which is what they do very often, and the second is by printing cu
ency.
1. The Chinese government is known for manipulating cu
ency as they do it very often by setting up a reference rate to keep the price of the Yuan in check, and by buying and selling the Dollar to keep the price of the Yuan in check. China manipulates its cu
ency to make its exports more competitive as by lowering the value of the Yuan it can decrease the price of...
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