Please help me with reply to these two students posts:

post 1

Chely Gonzalez posted May 19, 2024 11:16 PMSubscribe

China and Mercantilism

China's economic policy is based on neo-mercantilism ways. Mercantilism means an economic philosophy advocating that countries should simultaneously encourage exports and discourage imports (Hill, 2021). This method allows for the exports to stay low which means they will gain more money from trade. China has pursued a neo-mercantilist policy, deliberately keeping its currency value low against the U.S. dollar to sell more goods, and thus amass a trade surplus and foreign exchange reserves (Hill, 2021). China is developing its economy, and its hunger for energy and commodities has soared (Gueldry & Liang, 2016). I think that the U.S. and other trading partners should take measures to make sure the trading relationship does not suffer. Imposing trade tariffs should help equalize the balance of exports and imports with all trading partners.

Post 2

Nikia Zanders posted May 18, 2024 10:39 PMSubscribe

Hello everyone,

After reading the chapter, one can conclude that China is a highly significant nation that has experienced economic growth over time. China is the most successful neo-mercantilist country in the world today, in addition to pursuing a neo-mercantilist economic policy. Under normal circumstances, one might argue that China's neo-mercantilist economic strategy is the result of the country's economic circumstances, but this is not accurate. Because of its enormous population and the principles of supply and demand, labor is inexpensive in China. Because of this, many businesses found it profitable to run factories in China to manufacture goods that are subsequently shipped back to their home nations at prices that are advantageous to China, including reduced tariffs. As that being said this is where all the problems started. The United States may also try using tariffs as leverage against imports from China. It should be noted that implementing either of these techniques would necessitate a thorough investigation to prevent increased prices and the ensuing disruptions to supply chains in the United States. The trading sector operates, but nations need to engage in fair trade by conducting business with other nations deserving of their business.