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Elementary,Middle School,High School,College,University,PHD
Teaching Since: | Apr 2017 |
Last Sign in: | 271 Weeks Ago, 2 Days Ago |
Questions Answered: | 352 |
Tutorials Posted: | 351 |
MBA,PHD in Psychology
Northwest Florida State College
Jun-1992 - May-1997
Professor
Northwest Florida State College,
Aug-2006 - Nov-2015
Reread the opening case, then answer the following questions:
a. Why do you think the Chinese government originally pegged the value of the yuan against the U.S dollar? What were the benefits of doing this for China? What were the costs?
b. Over the last decade, many foreign firms have invested in China and used their Chinese factories to produce goods for export. If the yuan is allowed to float freely against the U.S. dollar on the foreign exchange markets and appreciates in value, how might this affect the fortunes of those enterprises?
c. How might a decision to let the yuan float freely affect future foreign direct investment flows into China?
d. Under what circumstances might a decision to let the yuan float freely destabilize the Chinese economy? What might the global implications of this be?
e. Do you think the U.S. government should push the Chinese to let the yuan float freely? Why?
f. What do you think the Chinese government should do? Let the yuan float, maintain the peg, or change the peg in some way
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