The development of an
increasingly integrated global economy
marked especially by
free trade, free flow of capital,
and the tapping of
cheaper foreign labor markets.

US dollar


Globalization and economy
American dollars are playing a role of international reserve currency till today. The trade over the world is dependent on the international currency. Thus, America has more control over the international business. Questions have been asked about whether U.S. dollars should be used as international currency since 1990s but at that time there was no alternative. However, euro provided another option and people began to reconsider this problem especially after the continuous fall of American dollars in the currency market. From my knowledge, one us dollar was more than 8 RMB when I was in secondary school back in China but now one us dollar is 6.8 RMB. The fall started since last year, it seems like a pleasant thing for China but in the international scale, Chinese products become expensive to the people in the other world which will give rise to the decrease in exportation of China. China is facing an economic threat. Moreover, in 2008, the big jump in price of pork has caused anxiety among Chinese and the inflation has been started in several countries. I feel that the price of goods in Singapore has also risen in the year past. The US dollar has affected the world and it will continue to influence global trade. It is time for us to do something to restrict the dominance of America and US dollar.

Posted by Dewei


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