Unformatted text preview: they are creating. This can eventually break the Chinese economy for they have a weak banking system and cannot easily switch over to a free-floating exchange rate. On the other hand, they cannot indefinitely continue buying dollars and issuing more Yuan, this will increase inflation, which is already on the rise. Thus, while this system in beneficial for increasing the overall global economic success of a nation it will eventually lead to internal difficulties that could lead to the collapse of the economy in their greed to quickly become an international economic power. Hill, C.W. (2007). International Business. New York, NY: McGraw-Hill/Irwin...
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- Spring '11
- International Trade, United States dollar, dollar, Yuan