Question

In: Finance

which exchange most significantly impacts the U.S. markets

which exchange most significantly impacts the U.S. markets

Solutions

Expert Solution

China market exchange most significantly impact the US market.

Based on the US security and exchange commission.A " national securities exchange" is a securities exchange that has registered with the SEC under Section 6 of the Securities Exchange Act of 1934. According to an article by Patrick Gillespie on CNN Money, the US economy is holding strong and steady even while the global economy is losing its value. Due to the advancement of technology and the increased avenues of communication, national stock markets have had much more volatile connections to the U.S.. Through the changes in oil, raw materials, trades, exchange rates, economic structures and governmental policies; all of these factors impact the global market as a whole. In evaluating what exchange has the greatest impact on the U.S., I would suggest that it is China’s market.

The U.S. and China dominate the global market as the world's largest economies, with $15.7 trillion gross domestic product (GDP) and $8.2 trillion GDP in 2012, respectively.[1] But, size doesn't make a country immune from external market forces. In fact, the U.S. and China play significant roles in one another's economies and the foreign exchange market.

If the Chinese economy continues to grow about 8 percent a year, both competition and opportunities will increase on a global scale, says Dr. Penelope B. Prime, professor of international business at Georgia State University in Atlanta. Chinese companies will start more companies or joint ventures in the U.S., increasing the number of Americans working for Chinese firms. "China will become a supplier of capital


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