Question

In: Economics

the major concerns of china is their policies that leep the uan undervalued relative to the...

the major concerns of china is their policies that leep the uan undervalued relative to the dollar and theft of intellectual property of US companies operatinf in its borders

TRUE OR FALSE

Solutions

Expert Solution

Answer:
TRUE
Reasons:

  • Intentional Undervaluation of Chinese Yuan relative to the dollar by Chinese government to increase their overall trade is one of the major concern that other countries are having. As Chinese economy is net exporting economy so by devaluating their currency they can export more and their economy appear cheaper which attracts more investments to their economy.
  • Intellectual property theft is also common in China mostly of American tech companies because they made a policy that until foreign companies don't have domestic partners they cannot operate in China which make them even more easier in intellectual theft.
  • Even laws of the government are framed in such a way that it supports domestic companies which further motivates the company to carry on intellectual theft.

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