Floating Exchange Effects on China

Curated and Reviewed by Lesson Planet

Now that we understand what the Chinese Government does to keep its currency artificially suppressed, Sal explores what might happen if they were to allow a free floating exchange against the dollar. He outlines the hypothetical ripple effect, starting with the strengthening of the Yuan and ending with the possible transfer for the manufacturing base to other developed countries such as India or Latin America.

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Concepts

appreciation, inflation

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Additional Tags

chinese currency, inflation, yuan, chinese economy, manufacturing base, floating currency, appreciate, social studies

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Resource Details

Grade

11th - Higher Ed

Subjects

Social Studies & History