China,deliberately keeping its currency value low against the U.S.dollar in order to sell more goods to the United States,and thus amass a trade surplus and foreign exchange reserves,is viewed by critics as following a:

Question

Quizplus · Accepted Answer

"Neo-mercantilist policy" refers to a country's deliberate manipulation of its currency to achieve a trade surplus and gain economic advantage at the expense of other countries. This is exactly what critics accuse China of doing by keeping its currency value low against the US dollar. Therefore, option B is the correct choice. Option A ("zero-sum game") and option C ("positive-sum game") are not applicable to this scenario, and option D ("free trade policy") is incorrect as it implies no currency manipulation.

China,deliberately Keeping Its Currency Value Low Against the U