StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

China Revalues Yuan - Assignment Example

Cite this document
Summary
The paper “China Revalues Yuan” looks at China as one of the biggest competitors in the world. It is in the league of beating any country in the world in the quality of products and exports. China is throwing big challenges to all the super powers for the last couple of years…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.6% of users find it useful
China Revalues Yuan
Read Text Preview

Extract of sample "China Revalues Yuan"

Download file to see previous pages

The exhibitions held in Guangzhou, Beijing every now and then, attract a lot of participants from the world to buy and sell their products. This has become a platform for Industries to show-case their products. This has taken away the hosting rights from Germany and France, where Industrial Expo used to be held in the past. (ChinaDaily 2009) According to the leading businessmen in China, it is reported that the appreciation of their currency has surpassed the growth of their business beyond their dreams.

Due to the higher valuation of Yuan, the exporters who have been making money on Dollar denomination found to be declining in their profits. At the same time, the exhibitors are afraid that the process may slow down their export due to the valuation. However the associations and the chamber of commerce in China say that this is only a passing phase and in due course of time, it will become normal, as the economy worldwide is improving. (ChinaDaily 2009) The Chinese government, in order to reduce the gap with the major buyer like the United States of America, revalued its currency against the U.

S dollar, to avoid the fixation of the rate of Yuan against the U.S dollar. The stronger Yuan will result in Chinese products being priced higher. By that, the sales in the US will increase sales in the market and thus bring in a greater amount of dollars. There is a fear in the US market that the Chinese products will cost more due to the fixed rate of Yuan. (Isidore, 2005)The US Senators rather welcome the change of Chinese financial decision though it is not appreciated by the congress. The financial analysts say that the change though small in stature, it is very significant since they have revalued the currency that will pave way for further future valuations.

Global Economists feel that it may not cause an immediate impact on the economics of the trade but will open the doors to strengthen the Chinese currency. But, the incident resulted in the US stocks soaring immediately, only to become normal after some time. (Isidore, 2005)It has been established that the fixed rate of the currency with US $ has widened the trade gap between the two and kept the Chinese made goods cheap buy in the US. The Central Bank of China assured that the exchange rate band would be adjusted when necessary according to market development as well as economic and financial situations.

In a survey conducted in the US, it is reported that there will not be much impact on the trade due to the revaluation of the Chinese currency but, there could be market stabilization favoring China in the long run. The US is trying to impose trade sanctions on Chinese imports if the market-based valuation of Yuan is not allowed. (Isidore, 2005)The major move by the Chinese Government in the currency conversion is backed by the exporters, manufacturers and the suppliers and also the trade bodies /associations in the country.

This is a great step forward by them to strengthen the financial and economic stability of the country. The President of China Hu Jintao told US President at a meeting, that in the scene of an outbreak of the International financial crisis, China has maintained a stable Yuan exchange rate despite the difficult economic conditions.

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(China Revalues Yuan Assignment Example | Topics and Well Written Essays - 750 words, n.d.)
China Revalues Yuan Assignment Example | Topics and Well Written Essays - 750 words. Retrieved from https://studentshare.org/sociology/1525423-should-the-chinese-be-allowed-to-continue-to-fix-the-yuan
(China Revalues Yuan Assignment Example | Topics and Well Written Essays - 750 Words)
China Revalues Yuan Assignment Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/sociology/1525423-should-the-chinese-be-allowed-to-continue-to-fix-the-yuan.
“China Revalues Yuan Assignment Example | Topics and Well Written Essays - 750 Words”. https://studentshare.org/sociology/1525423-should-the-chinese-be-allowed-to-continue-to-fix-the-yuan.
  • Cited: 0 times

CHECK THESE SAMPLES OF China Revalues Yuan

Will China revalue its currencyCauses of devaluation Mechanisms Implications

The essay will provide justifications for both sides; it will provide the reasons behind the devaluation, the mechanisms used as well as implications on an undervalued yuan.... (Lee 2010) A research conducted by the Chinese authorities on the streets showed that a percent appreciation in the value of yuan will lead to a percent decline in the tiny profit margins of the small export oriented companies.... Economists opine that an undervalue yuan is critical for sustaining the Chinese growth; therefore, all the intimidating by the world leaders will not change the Chinese policy....
5 Pages (1250 words) Essay

Ancient China: How was Buddhism, originally an Indian religion, adapted to Chinese culture

The foreign rulers of China like the yuan Dynasty and the Manchus, used religion to justify their rule and connect with the Chinese people.... The religion was also used by foreign rulers of China, such as the yuan Dynasty and the Manchus, to connect with the Chinese and justify their rule.... Buddhism arrived in china from India through the good work by the missionaries and the supportive role of the traders.... Buddhism arrived in china from India through the good work by the missionaries and the supportive role of the traders, the route being the Silk Route, which connected china with Europe....
5 Pages (1250 words) Essay

Theme Parks in China A Market Analysis

billion yuan in total tourism revenue in 2005, and has been growing ever since.... The People's Republic of china is the third largest country in the world in terms of area, and the first largest in terms of population (china National Tourism Administration).... Until a few years ago, the leisure industry in china was unheard of.... According to statistics from china's National Tourism Administration, as a major representative of the leisure industry, china's domestic tourism industry recorded 1....
6 Pages (1500 words) Essay

Business and Investment Opportunity in China

The real incomes in china are on rise because of its phenomenal economic growth in past three decades.... china is the only country that… s constantly maintained double digit manufacturing and services sector growth rate (prior to economic recession) in past 10 years thereby resulting in higher employment, financial wealth, prosperity and improved standard of living of its people.... Its Gross Domestic Product is That's why economists and pundits expect that china's GDP (presently 3rd largest) will easily surpass the Japan's GDP (presently 2nd largest) in next few months or within a year....
9 Pages (2250 words) Essay

Ancient Chinese Civilization

The paper "Ancient Chinese Civilization" focuses on the stories from the yuan, Ming and Qing periods, religious beliefs and practices, family organization and family values, the roles of males and females in the society and also the vast difference between the poor and the rich.... oyalty was basically what the leadership in china was based on....
6 Pages (1500 words) Essay

Is the Chinese Currency Undervalued

The United States… rnment, for instance, has repeatedly raised the issue, noting in one policy pronouncement that the countrys exchange rate is a source of concern and proceeded on warning the world against and only stopped short of calling the country a currency manipulator (Rajagopalan & Essentially, China enjoys preference as an import destination because its products are cheaper on account of the low value of the yuan.... In the event of trade where a Chinese exporter sells a product to an American trading partner, he receives the payment in dollar, which is then converted to the yuan....
5 Pages (1250 words) Research Paper

International Joint Venture for Kellogg Company

Kellogg Company and Wilmar International Limited established an international joint venture in china in 2012, which sought to serve the Chinese community with breakfast cereals and snacks (Kellogg Company, 2012:n.... The joint venture that was established between Kellogg and Wilmar was launched in china on Sept....
10 Pages (2500 words) Case Study

Modern Concept of Individualism Versus Traditional Values of the Community: Peking Opera Blues

General Cao is assisting yuan to secure the loan.... Its plot touches on real history, a time when china is at a crossroads between freedom and dictatorial traditional values.... This movie review "Modern Concept of Individualism Versus Traditional Values of the Community: Peking Opera Blues" discusses movies where there are instances where the conflict between individualism and traditional values of the village are at play....
5 Pages (1250 words) Movie Review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us