Posts Tagged ‘business school’
The Yuan & Dollar Exchange
Sunday, March 21st, 2010
The exchange rate of the Chinese Renminbi or the Yuan has always been a point of contention between the United States and China and even between China and the European Union. Thus, within business schools and political science programs this exchange rate issue and trade deficit concern has now become a hot topic for research papers. The reason for this is manifold but in essence China keeps its Yuan or RMB undervalued in order to bolster its export market. By keeping the Yuan undervalued compared to foreign currencies a country’s export market benefits because its products that are manufactured in its borders and then sent overseas are cheaper than those of its trading partners. However, what makes this exchange rate issue even more contentious is the manner in which China keeps its Yuan undervalued and the outcome of this strategy. China keeps its Yuan undervalued by purchasing foreign debt or, with respect to the US, treasury bills which in turn has funded the US’ massive debt load and recent credit binge. Because China owns so much US currency it now has a great stake in how the US manages its economy but it also becomes dependent upon the US’ continued purchasing of its low-cost goods. Should the US government slap trade tariffs of any kind on Chinese goods this removes the benefit that China gains from undervaluing its currency. Presently China manages its exchange rate through a process called a managed float in which it keeps its Yuan pegged to a floating exchange rate that is pegged to a basket of currencies rather than pegged to a single currency. However, since China only publishes some of the specific currencies it includes in this basket of currencies it is difficult for outside markets to gauge currency movements. All of these factors ensure that the current Yuan exchange rate and trade deficit spat with the US will remain a complicated and complex foreign relations as well as economic issue. This is why the US-China exchange rate issue is such a popular topic not only in economics classes but also in foreign relations, international relations, as well as finance and business strategy courses. Presently many professors and instructors are assigning essays, term papers, and even theses and dissertations that discuss some aspect of the Yuan or RMB and US dollar exchange rate issues.
Tags: basket of currencies, business school, China, china's foreign debt, chinese renminbi, currency, currency peg, deficit, economics essays, economics papers, exchange, exchange rate, foreign debt, issue, managed float, peg, political science programs, rate, renminbi, rmb, tariffs, term papers, trade deficit, trade dispute, trade tariffs, United States, US, us china trade, us treasury bills, Yuan, yuan exchange rate
Posted in Uncategorized | No Comments »
Recession = Graduate School
Sunday, January 10th, 2010
A variety of pundits are saying the global recession (or the great recession as many are calling it) is officially over. However, while the massive job layoffs and corporate downsizing might be coming to an end or slowing, few firms are actually adding jobs and real incomes continue to be down. Many firms and governmental authorities might want you to believe the recession is officially over but we all know the truth. Some consumer spending is up but it is up because people are not paying their mortgages. Additionally, fewer people are working full-time and more and more are returning to graduate school or law school in an effort to improve their future job prospects. Most developed societies across the globe are experiencing some fundamental shifts with the character of their economies changing forever as well. This now requires a greater number of service related employees or intellectual and knowledge workers with technology prowess and those societies that fail to adjust or adapt will slowly decline. So, if you haven’t already, you might want to consider brushing off those GMAT books or LSAT books and start preparing for these graduate school exams or face the prospect of employment irrelevance.
Tags: business school, consumer spending, corporate downsizing, global recession, gmat, governmental authorities, graduate, graduate school, graduate school admissions, great recession, job, law school, law school admissions, lsat, lsat books, real incomes, recession, school, variety
Posted in Uncategorized | No Comments »
