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In: Operations Management

Do you think that the US should retaliate against the Chinese manipulation of its currency by...

Do you think that the US should retaliate against the Chinese manipulation of its currency by manipulating the US dollar?

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Expert Solution

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No, I believe the United States should retaliate against the Chinese manipulation of its currency and there are a number of different reasons for that. First of all is the threat of declaring an all-out cold war which is also the main factor for the provided reason. China is the world's greatest exporter and the American economy has demands for a lot of products from the Chinese. It would mean that both the countries could put a strain on their trade relations and therefore, disrupt their economy. This is especially true in the case of America where a lot of businesses have their subsidiaries and manufacturing plants set up in China because of the availability of cheap labor. It is not feasible for America to strain their relationship with the country with the largest population on the entire planet.


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