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Exchange Rates between U.S. and China Management Essay (Essay Sample)


This is only requirement that our profeesor give us, "you can select any country or group of countries among the US major trading partners and discuss any topic concerning this country’s trade and exchange relations with the US and their impact on related multinational corporations and the various components of the balance of payments in both. The focus and style is up to you - it can be in the form of a slide presentation, if you wish, and may include your perspective on the way the country’s trade and exchange rate policies may contribute to these relations. The text should not exceed the equivalent of 10 pages, but there is no limit on the number of supporting materials (tables/graphs) you can include. In developing the paper, you should attempt to rely, as much as you can, on what you learned from the course."


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Exchange Rates between U.S. and China
Exchange rates play a major role in international trade. According to Kang and Dagli, exchange rates impact trade and as a result, many countries strive to implement effective exchange rate policies to secure a strong position in international trade (84). Also, effective exchange rate policies enhance the stability of the domestic economy. The exchange rates are one of the major factors affecting the trade and exchange relations between the U.S. and China. This paper examines the effect of exchange rates on multinational corporations, the balance of payments, the balance of trade in the U.S. and China, and their overall effect on the trade relations between the two countries.

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