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During the 1997 Asian economic crisis, the values of many regional currencies collapsed, making their goods cheap to foreign buyers.
Like the Omaha investor's recent $23 billion move on Heinz, this deal blends consumer goods, cheap debt and private capital staked by billionaire families.
Many American politicians argue that the current level, at 6.8 renminbi to the dollar, gives Chinese exporters an unfair advantage by making their goods cheap for overseas buyers.
One can buy leather goods, cheap sneaks, American Indian crafts, birdhouses, candy and snacks, rocks and gems, all while leaving your animal at the pet spa and boutique.
Part of the explanation may be that Romney's signature China issue — accusing the Chinese of artificially depressing the value of its currency to keep its goods cheap and American exports expensive — has lost much of its punch in recent months.
To keep its goods cheap, it has allowed its currency to rise only about 6 percent against the dollar since June 2010, even as the dollar has plunged against other currencies.
Similar(47)
A weak dollar makes American goods cheaper overseas.
A weaker dollar has made American goods cheaper overseas.
A falling dollar makes American goods cheaper for foreigners.
A weaker currency may help exporters, by making their goods cheaper overseas.
Exporters are expected to get a boost from the weak pound, making their goods cheaper overseas.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com