StudentShare solutions
Triangle menu

Case Study Example

Nobody downloaded yet

Extract of sample

While this move is anticipated to benefit China’s trading partners, since they will be in a position to reap the benefit of a flexible currency exchange rate, which includes increasing the value of their exports to China, there is some dissent view amongst some economists, that doing that will have a negative implication on China and consequently on its trading partners (Alfaro and Tella, 7). On the event that China would make its currency exchange rate more flexible, a high rate of deflation will be experienced in China, which would result to economic decline. This is because; making the exchange rate flexible would mean that the Chinese currency will lose some value relative to other currencies, such as the US dollar. This would mean that the cost of doing business in china will increase, since the multinational corporations and other foreign investments to china will be force to cater for the cost of increased inflation. This might result to having most of the foreign investments or the multinational companies moving out of the Chinese market, and seeking to invest in other countries, where the cost of doing business will be relatively lower (Alfaro and Tella, 18). ...
The Chinese economy operated under the principles of communism, until reforms were introduced to make it a socialist economy, with private ownership of property and increased reforms in agriculture, state-owned enterprises, banking sector, trade and foreign investment policies, which saw China increase its GDP growth by 9.5% annually, and increase its trade from 10% of GDP to 79% of GDP between 1978 to 2004 (Alfaro and Tella, 15). The most significant change was in foreign investment policies, where China pursued policies that allowed for high foreign investment, resulting to having 50% of Chinas exports being produced by foreign investors by 2004 (Alfaro and Tella, 16). China pursued foreign direct investment into its economy more than borrowing loans, an aspect that saw the FDI account for more than 70% of its capital inflow in the early 2000s. However, the pressure of investment into china reached to a position of imbalance with the household consumption, prompting the Chinese government to slow down its pursuit for investment, to encourage household consumptions, so that the pressures of investment and consumption would level off. Thus, as opposed to focusing on revaluing the exchange rates, the Chinese government started focusing on domestic policies that would enhance consumption starting 2005 (Alfaro and Tella, 22). Both the domestic policy and the exchange rate revaluation have the impact of increasing deflationary pressure, while increasing the cost of doing business for foreign investors. This calls for a further adjustment to such businesses, which may include increasing their sales in China to cover up for the increased costs, or shifting their businesses to other countries which have less cost of doing business. Therefore, as much as there ...Show more


Name: Course: Date: China: To Float or Not To Float? The global interaction of currencies has an impact on the way trade is undertaken. The exchange rates of one currency against another influence the value of imports and exports, and thus determines the balance of payment deficits or surpluses…
Author : strackeokey
Case Study essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Case Study"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Case Study
14). In addition, according to Campbell and Miller (2011), the following characteristics of people with NPD include: grandiose sense of self-importance, preoccupations with unlimited success, exhibitionism, rage in response to criticism, and at least two of
2 pages (500 words) Case Study
Case study
It simply means that there are government leaders and humanitarian officials who acknowledge that more civilian lives would be endangered by
2 pages (500 words) Case Study
Case study
This is a clear indication that the company has outstanding marketing strategies, keeping in mind that it has a variety of writers who in turn provides quality writings. In addition, the company has its
1 pages (250 words) Case Study
Case study
Consequently, the following discussion looks at how the company can make a choice about the available growth strategies, factors to consider, as well as the likely future of Graze. Various strategies can be
2 pages (500 words) Case Study
Case study
Other get cut in work hours, demotion or just replaced by the person who was covering for them (Sims et al., 102). As a fact, it is unlawful to send packing or
7 pages (1750 words) Case Study
Case study
This has been significant in enabling the firm to segment the market and create a barrier of entry for any interested investors. The consistence that Mobinil brand has portrayed in the market is connected to its service
1 pages (250 words) Case Study
Case study
The management also did not review their training journals as was expected, and there were no Monday meetings as promised. The last time the apprentices had a
5 pages (1250 words) Case Study
Case Study
Therefore, the organizational life cycle is a sequential growth and development of an organization to its eventual termination (Özbilgin and Malakh-Pines, 2007). Hence, organizational life cycle follows distinct procedure that starts with conception, expansion, and eventual
1 pages (250 words) Case Study
Case Study
The question as to whether Henrietta should inform the authority or not is an issue of ethical responsibilities the social worker owes to their client and society (NASW Delegate Assembly, 2008). I think Henrietta should not information the authority about the issue because
1 pages (250 words) Case Study
Case study
As a counselor, then encourage what each is doing to maintain the family wellbeing in making them aware that you know their plans. The counselor focuses on the individual strength and abilities. The abilities difference cause attraction of
1 pages (250 words) Case Study
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Let us find you another Case Study on topic Case Study for FREE!
Contact us:
Contact Us Now
  • About StudentShare

  • Testimonials

  • FAQ

  • Blog

  • Free Essays
  • New Essays
  • Essays

  • The Newest Essay Topics
Join us:
Contact Us