A real problem
2007-05-05 04:11:08 · 4 answers · asked by Warren C 1 in Social Science ➔ Economics
In all liklihood China would then boycott goods produced in the US
2007-05-05 07:19:54 · answer #1 · answered by Bocephus 4 · 1⤊ 0⤋
Trade deficits are fixed by adjustments in the exchange rates. China had kept this from happening until about 2 years ago by pegging their currency to the dollar. Since then the value of the dollar has fallen about 10% vs Chinese currency making their products 10% more expensive here, and our product 10% cheaper there. The exchange rate will continue to adjust until trade flows balance, It is a little more complicated than this because we both also trade with other nations. The important action that our government needed to take was to get China to allow their currency to adjust to market forces, and now to make sure they continue to do so.
2007-05-05 05:07:18 · answer #2 · answered by meg 7 · 0⤊ 0⤋
Everthing we purchase has a chinese language impression.Any abstension in a boycott might have little or no distinction to them.They now have a stranglehold in the process the international one which would be complicated if no longer impossible to interrupt.
2016-12-17 04:50:35 · answer #3 · answered by ? 4 · 0⤊ 0⤋
It would help but realistically the answer lies in Congress putting pressure on The White House.
2007-05-05 04:24:19 · answer #4 · answered by Anonymous · 0⤊ 0⤋