Why would China want to have their currency undervalued
Why would China want to have their currency undervalued? Does this not make it weak against the US dollar? (response, minimum 5 sentences)
Watch attached videos to answer the question:
http://www.worldpolicy.org/blog/2016/01/14/china-currency-manipulator (Links to an external site.)
http://money.cnn.com/2015/05/26/news/economy/china-yuan-undervalued/ (Links to an external site.)
………………………Answer preview………………………
Why China would want to have their currency Undervalued
China would their currency undervalued so as to ensure that it has a weaker exchange rate. China would benefit from a weaker exchange rate as it will make its exports competitive as the economic growth of China is dependent on its exports. Undervaluing currency ensures makes China an official reserve currency. It also eases the inflationary pressure that occurs due to the economic growth that occurs due to an increase……………………..
APA
122 words
