During 2007, the United States and Japan announced possible limits on Chinese imports through higher tariffs on Chinese products. To avoid these limits, China would have had to:
A)decrease the value of the yuan and increase its trade surplus.
B)decrease the value of the yuan and decrease its trade surplus.
C)increase the value of the yuan and increase its trade surplus.
D)increase the value of the yuan and decrease its trade surplus.

Question

Quizplus · Accepted Answer

To avoid the limits on its imports through higher tariffs, China would have needed to increase the value of the yuan, making its exports more expensive and imports cheaper, thereby decreasing its trade surplus.

During 2007, the United States and Japan Announced Possible Limits