Buy custom RMB Revaluation
Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
7 / 1763 |
Essay's paper body
This might cause the US inflation rate to rise because of the increasing cost of goods. Shares of manufacturing companies that compete against China should rise along with shares of companies that are targets for Chinese acquisition. The revaluation makes it cheaper for Chinese companies to acquire US companies...
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This could also be very positive for the commodity markets, with the revaluation immediately reducing the cost for commodities.
Pros and Cons of Revaluation
Pros
Cheaper imports:
Although China has an inexpensive currency, its trade balance has been decreasing and for a few months in the beginning of 2004, it actually turned into deficit...
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