Read the POINT/COUNTERPOINT section in your textbook on page 210 " Should China Be Forced to Alter the Value of Its Currency?". Please discuss this issue and offer your opinion with supporting arguments.

POINT/COUNTERPOINT Should China Be Forced to Alter the value of Its Currency? Point U.S. politicians frequently suggest that can be partially attributed to the very high prices China needs to increase the value of the Chinese yuan in the United States, which are necessary to cover against the U.S. dollar, even though China has allowed the excessive compensation for executives and other the yuan to float (within boundaries). The U.S. politi employees at U.S. firms. The high prices in the United cians claim that the yuan is the cause of the large U.S. States encourage firms and consumers to purchase trade deficit with China. This issue is periodically goods from China. Even if China's yuan is revalued raised not only with currencies tied to the dollar, but upward, that move would not necessarily ensure that also with currencies that have a floating rate. Some U.S. firms and consumers will purchase U.S. prod. critics argue that the exchange rate can be used as a ucts. They may shift their purchases from China to form of trade protectionism. That is, a country can Indonesia or other low-wage countries rather than buy discourage or prevent imports and encourage exports more U.S. products. Thus, the underlying dilemma is by keeping the value of its currency artificially low. not specific to China, but rather stems from any coun Counterpoint China might counter that its large try that has lower costs of production than the United balance-of-trade surplus with the United States has States been due to the difference in prices between the two Who Is Correct? Use the Internet to learn more countries and that it should not be blamed for the high about this issue. Which argument do you support? U.S. prices. It might argue that the U.S. trade deficit Offer your own opinion on this issue