Economics - Macroeconomics - China
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1. Consider the following statement: “China’s current account surplus implies that China has added more to global supply of output than to global demand.” Does a current account surplus necessarily imply the stated outcome for global supply and demand?
2. Explain the role of China's administered exchange rate in contributing to its trade surpluses and therefore growth in the global supply of goods relative to demand.
3. We saw that exports from China have effectively lowered relative wages for unskilled and semi-skilled workers in advanced countries. What has been the effect on wages in China? Explain these forces in terms of the "factor price equalisation theorem" in international trade theory. Do these forces also apply to other factor prices?
4. Karl Marx said in 1867 in Volume 1 of "Capital" "..commodities are only definite masses of congealed labour time". To what extent is this true of the export of goods and services rather than by importing labour directly (immigration)
5. What are the underlying forces that have accelerated the process of globalisation in recent decades and are continuing to do so?
6. What specific policies could China and the US adopt to reduce their saving-investment imbalances and therefore their current account imbalances? What political obstacles would each country face in implementing each policy?
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xxx “xxxxx’x xxxxxxx xxxxxxx surplus xxxxxxx xxxx xxxxx has added xxxx xx xxxxxx xxxxxx xx xxxxxx than xx global demand.” xxxx x xxxxxxx account xxxxxxx necessarily imply xxx stated outcome for xxxxxx xxxxxx and xxxxxxx
A1: xxxxxxx xxxxxxx xxxxxxx xxxxxxx xx the xxxxxx xxxxxxxxx of its trade balance with xxx global economy, which has recently pitched xxxx due xx xxx xxxxxx export xxxxxx in x xxxxxxxxxxxxx global economy. Yes, a current xxxxxxx xxxxxxx is the xxxxxxx xxxxxx xxxxxxx to xxxxxxxxx the outcome xxx xxx xxxxxx supply and demand. Every nation xxxxxxx xxx monetary xxxxxxxxxxx in xxx balance xx payments (BOP), under different categories, xxxx xxx current xxxxxxxx the capital xxxxxxx xxx the financial account.
The xxxxxxx of xxx xxxxxxx xxxxxxx xxxxxxxxx xxxx xxxxxxx a nation is xxxxxx x xxxxxxx or x xxxxxxxx xx xxx xxxxxxx is facing a deficit, it exhibits that xxx economy xx facing xxxxxx times. xxx xxxxxxx account contains four xxxxxxxxxxx goods, xxxxxxxxx xxx income and
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