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.

Answer rating: 100% (QA)

An artificially low exchange rate in China can have several effects 1 Advantages for China Boost to Exports Chinese goods become cheaper for foreign b... View the full answer