China has enjoyed an ever-growing trade surplus with the rest of the world, including the United States. President Obama has cried “foul” over the Chinese government’s policies that keep the Chinese currency (yuan) “undervalued.” Explain carefully what the difference is between a country like China having a cost advantage versus comparative advantage in production of a good or service. Who wins and who loses from the undervaluation of the yuan? Do these policies maximize the output that can be produced on a global scale from the world’s limited resources? Why or why not?