– Country Research Project
CHINA Exchange Rate Analysis (up to 15 points)
Divide the paper by sections with subheadings labeled in RED.
Part 1
Subheading 1
5 Year Comparison between China and the US
Identify the country’s currency, the exchange rate regime (i.e., fixed, flexible, pegged, etc.) and the exchange rate relative to the US dollar over the 5 years ending April 2022.
Special Note: Do the analysis starting from
A.) 2017
B.) 2018
C. 2019
D.) 2020
E.) 2021
F.) 2022
Subheading 2
Current analysis 2021-2022
Then, compare changes in the exchange rate of your country’s official currency versus 1 US dollar over the past year.
Part 2
Subheading 3
Why is China experiencing the current exchange rate?
Using the exchange rate information retrieved from part 1, analyze reasons for changes in your assigned currency over the past year. Try to research inflation in China, to make educated guesses about possible real exchange rates during the year. In addition to inflation, research other factors in your country that, in your opinion, may have affected currency exchange rates, especially any extreme highs and lows. You may also research online opinions, reports and articles by analysts, currency traders, investment professionals, and economists. Consider and evaluate others’ opinions. Analyze your findings and explain your reasons for the changes identified in the currency’s exchange rate changes over the past one year, especially on days with extreme highs and lows.
Part 3
Has the currency appreciated or depreciated against the U.S. dollar?
Everything else constant, explain the implications for the country’s exports, imports, and net exports with the United States. Describe and illustrate how exchange rate changes impacted economic growth, unemployment, and inflation in the country. Has the central bank engaged in intervention? If so, what tools were used and with what purpose?
COUNTRY REPORT PREPARATION GUIDELINES:
Your country report must adhere to the following guidelines (a minimum 10 point penalty will be applied to all papers that do not follow these guidelines):
a. Length:
The paper should be no longer than 5 pages (1 page for charts please)
- , excluding all charts/graphs, references, appendices, and the answer to the bonus question.
- All charts/graphs must be included at the end of the paper, preceding the references section and any appendices.
b. Appearance:
- Your paper must be written in English; and typed in double-spaced Times New Roman font with a point size of 12.
- Use margins of 1 inch (2.5 cm) all around.
- Page headers and/or footers should contain page numbers.
- The title page must include the authors’ names, the name of the country analyzed, the institutional affiliation (i.e., St. Edward’s University, School of Management and Business), date (month/year), and email addresses where professor’s feedback should be sent.
c. Charts and citations:
- Charts and graphs should be “stylized”; that is, exhibits should be developed, formatted, and inserted into the document appropriately. Cutting and pasting direct output from statistical software into the document is not satisfactory. Datasets, publications, and other documentation must be properly cited, based on the American Psychological Association Bibliographic Style (6th edition) or MLA Bibliographic Style (7th Edition).
d. Sources:
- Cite your sources and use only reliable, unbiased and verified sources to document your work. Remember that use of unreliable, biased and/or unverified sources (such as Wikipedia, Investopedia, etc.) will result in an additional 20 point penalty.
COUNTRY REPORT GRADING GUIDELINES:
When writing your report, please refer to White’s (1988) guidelines[1] on grading written work:
- An outstanding (i.e., “A” paper) completes the task set by the assignment and is excellent in nearly all respects. Well argued and well organized, such a paper has a clear thesis stated or implied. The content is specific, accurate, interesting and appropriate. The paper demonstrates an ability to produce and synthesize complex ideas. Logical transitions contribute to its fluent style. It is virtually free from errors in mechanics, usage and sentence structure and shows evidence of excellent command of language.
