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We are investigating why governments try to intervene in the currency market to keep values of their own currency low. This practice is used to promote the sale of goods to other countries and create additional exports. Here, the purchasing company views the lower value of the foreign currency as a bargain for purchasing goods because the lesser value purchases a larger quantity. In expanding the research and knowledge of the ongoing relationship between the United States and China, write a paper to summarize currency market intervention and decide whether this is a useful tool. Explain your rationale. Cite an example of how intervention has been used to benefit either of these countries and the circumstances surrounding this intervention. Did the United States or China succeed in their efforts? How is this known? Overall, do you believe this was a beneficial choice for the government and country? What data is your opinion based upon?

Financial Management, Finance

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