How Were Countries Whose Industries Competed with Chinese Industry Affected

question 131

Multiple Choice

How were countries whose industries competed with Chinese industry affected by a yuan that was pegged to the dollar?

• A)Because the yuan was undervalued at the pegged exchange rate,the level of Chinese exports remained higher than they would have been if the exchange rate was allowed to float freely.
• B)Because the yuan was overvalued at the pegged exchange rate,competing firms from other countries feared that abandoning the peg would lead to an increase in Chinese exports.
• C)Competitors feared that the declining value of the dollar would continue to make Chinese goods more expensive.
• D)Because China's population is so large relative to other countries,the pegged exchange rate made the goods of foreign competing firms much less expensive than domestic Chinese goods.

---

Definitions:

Fugitive Slaves

Slaves who escaped from their owners.

Northern Military Commanders

Refers to the leaders of military operations within the North or Northern regions, often relating to specific historical conflicts or geographical areas.

Owners

Individuals or entities who have legal possession and control over property, businesses, or intellectual properties.

Civil War

A conflict between factions within the same country, typically over political, social, or territorial disputes.