China’s Yuan Exchange Rate Foreign countries have been pressing China’s government to alter its exchange rate policy to allow more flexibility, presumably so that the yuan will appreciate by a...

THE effect of the CHINEESE trade policy and it’s currency appreciation on the world :
As a result of the forces of globalisation countries are, today, much more interdependent than they had been 20 to 30 years ago. Economic isolation is no longer a viable option for an economy that wishes to benefit from the global flow of goods, services and ideas. Aided by revolutionary changes in information and communication technology, this flow has undergone tremendous acceleration in recent years.
The exchange rate is the price of a country’s currency in terms of that of another. Thus, it is a very important relative price that has important hearing on a country’s imports and exports. Over the years the world has faced difficulties in trade with China. This is mainly because the Chinese government have maintained a strict fixed exchange rate. A fixed exchange can be defined as that exchange regime which is fully...