Traditional Culture Encyclopedia - Traditional culture - Influence of RMB appreciation on foreign trade enterprises
Influence of RMB appreciation on foreign trade enterprises
export costs increase and competitiveness decreases.
1. Increase in export cost: Due to the appreciation of RMB, China's commodities exported abroad need to pay more US dollars, which leads to an increase in export cost.
2. Decline in competitiveness: The appreciation of RMB leads to a decline in the competitiveness of China products, and the same amount of RMB can be exchanged for less dollars, thus losing its competitive advantage in the international market.
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