Sentences in BTN - Essay Example

No. Page of BTN Provide the Sentence in BTN and location of the sentence that prompted your question Describe the Question 1. 2 Countries pursue economic policies that are likely to depreciate the relative value of the respective currencies. Does depreciation of local currency the best method to speed up the economic growth rate of a country? 2. 2 The currency depreciating policies adopted in the beggar thy neighbor policies lead to mass widespread criticism What approach was put in place to curb the criticism? 3. 3 A Chinese firm is used for analysis to determine if the exchange rates affect trade flows in a systematic manner.

What was considered in the selection of the firms for analysis that prompted the use of the Chinese firm? 4. 6 It is beyond the analysis of this paper to compare the responses of the foreign country policies to the domestic policies that existed initially How did the foreign countries react to the initial domestic policies? 5. 7 China maintained a fixed exchange rate from 1994 to 2005 and during this period the USA experienced continued and increasing deficits in trade against China. Was the maintenance of a fixed exchange rate a factor in the increase in the trade deficit between the two countries? 6. 9 Domestic Chinese firms obtained raw materials from the foreign trading partner freely without making payments.

The firm would then sell the product to the same foreign trading partner and charges the trading partner only the assemblage fee. How were the domestic firms making profits from these transactions assuming the assemblage fees were not exaggerated? 7. 10 Ordinary exports and imports formed the main basis of the analysis as they accounted for the majority of the exports and the imports. Were other forms of imports and exports influential to the deficit trade balance of the two countries? 8. 11 The share of each of the processing firm is used as a determinant of the level of processing trade engagement of the given firm during the analysis What is the relationship between the shares of a processing firm and the processing trade engagement level? 9. 11 The effects of the firm level dynamics on the aggregate china-us trade balance is examined using beard formula of decomposing the annual changes in exports and imports between the two countries.

What are the drawbacks of using the formula in the estimation of effects? 10. 13 Percentage changes in the GDP of China and USA are used to control the effects on the demands on firm exports and imports. When are the differences in the changes of the GDP of the two countries favorable and likely to lead to a balance in trade? 11. 13 Firm fixed effects are used in the control of any unique feature that may affect the exports or imports at the firm level hence errors are standardized at the firm level How is the statistic regarding the many firms brought together to compile the aggregate data for the whole country taking into account the error now that the analysis is done at firm levels? 12. 16 From the analysis, the exchange rates in the Chinese firms take place in the first half year of the exchange rate change.

How does the time of change of the exchange rate of the Chinese firms compare to that of USA firms? Do the changes in the exchange rates take place at the same time and how does that facilitate the analysis process? 13. 16 The exchange rate of the CNY to that of the currencies of other countries is insignificant from the coefficients of the analysis. Does the analysis still hold on its worth if done between China and another country other than the USA as far as the currencies of those countries are considered? 14. 22 The aim of the Beggar-Thy-Neighbor is to increase the demand for the exports of a country at the same time lowering imports.

How effective in strategy especially in countries whose exports are mainly raw materials that attract very little revenue? 15. 23 The policy may help in the rectification of a country’s economic status but harm the country’s trading partners. How will the country ensure the trading partners are not scared away hence hitting the targets of the country? 16. 29 Some economists advise that China should consider adjusting its exchange rates so as to correct the imbalances between her and the USA.

How effective is this step toward the realization of the balance of trade between the two countries? What would be the effect of the USA adjusting her exchange rates? 17. 30 The research reveals that the response to the exchange rates by the Chinese firms is a factor of how deep the firm is involved in the processing trade. How does involvement in processing trade influence the elasticities of the exchange rates and why? 18. 30 The trade between China and USA is strongly affected by the CNY/USD exchange rates as distinguishable between ordinary and processing firms.

Why is the influence on the flows of trade stronger than it was initially thought? 19. 30 The current deficit in trade of USA is contributed mainly by China according to statistics given by the USA. What can be deduced from this statement as regards China on the bilateral trade that the USA engages? 20. 16 Countries have opted to adopt measures that depreciate their domestic currencies to increase their economic growth. What is the period needed for the policies to meet the objectives of stabilizing the economy?

References Geisst, Charles R. Beggar Thy Neighbor: A History of Usury and Debt. New York: University of Pennsylvania Press, 2013.