China becomes the world’s largest exporter

In the International economics section of the syllabus, it is important to distinguish between the volume and value of trade, and also the impact of changes in the balance of payments and the exchange rate and vice versa.  This article refers to China which operates a fixed exchange rate system. We need to think about how this creates different costs and benefits compared to the same situation with a floating exchange rate.

BBC article – China ‘overtakes Germany as world’s largest exporter’