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china Payments
Essay specific features
Written by:
Wanda G
Date added:
February 15, 2017
Level:
University
Grade:
A
No of pages / words:
2 / 498
Was viewed:
7090 times
Rating of current essay:
Essay content:
China leads American companies earn big profit by using cheap factors of production. In addition since the US imports more that it export, the US have a trade deficit, creating an current account deficit. So in order to keep low interest rate, the Chinese government invest in the America economy through treasury bonds, this help the economy to be stable and ensure customer spending...
displayed 300 characters
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So in order to keep low interest rate, the Chinese government invest in the America economy through treasury bonds, this help the economy to be stable and ensure customer spending. So when US market consume Chinese product, China pays the US with treasury bond.
By buying this treasury bonds, China is making sure that america will continue buying its exports...
displayed 300 characters
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