Allegations of Currency Manipulation
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There are allegations that China is manipulating the Yuan by not allowing the currency to appreciate in value. The Chinese Yuan was closely pegged to the American dollar. This has kept Chinese goods cheap on international markets, which increases demand for their products worldwide. Although, America is most disadvantaged by the Yuan, emerging economies such as India and Brazil are also hurt by inexpensive Chinese goods. By manipulating the Yuan, China faces a potential trade war with the United States. A potential trade war may result in significant losses for all parties.
Source.
"Over to you, China." Economist . 16 April 2010: 14. Print. … "Allegations of Currency Manipulation" will have a long-term negative impact on this entity, which subtracts from the entity's value.
SWOT Analysis Survey
SWOT Threat: Allegations of Currency Manipulation
There are allegations that China is manipulating the Yuan by not allowing the currency to appreciate in value. The Chinese Yuan was closely pegged to the American dollar. This has kept Chinese goods cheap on international markets, which increases demand for their products worldwide. Although, America is most disadvantaged by the Yuan, emerging economies such as India and Brazil are also hurt by inexpensive Chinese goods. By manipulating the Yuan, China faces a potential trade war with the United States. A potential trade war may result in significant losses for all parties.
Source.
"Over to you, China." Economist . 16 April 2010: 14. Print.
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