Chapter 8 Response

Chapter 8, was packed with lots of information about China's overall economy. Dodson stresses the importance Chin's currency has in relation to the US dollar. It was a bit hard for me to grasp the true value of the two currencies mainly because I am not very familiar with foreign currency or vocabulary used to explain it. It was interesting to me how China is so worried about keeping an economic relationship with the US by keeping the value of its yuan relatively low. The part of the chapter in which Dodson explains China's stock market was surprising to me. He states, "Leading economists in the West propounded that gambling in Las Vegas was a safer bet than gambling on the Chinese stock market..." He later explains that the Chinese government suits its needs through the stock market and simply does what it thinks will benefit the government without the need to enforce rules or policies. It made me wonder how the overall economy of this country is holding up with such instability. I don't exactly know how I feel about Dodson's conclusion for China's future. He states that China will continue to invest abroad, but due to its large population, it will surely reduce the country's productivity.  I think that with China's development in population over the years, their society will be able to gain an increase in productivity and possibly become a leading nation within the next few years. With this in mind, China can become a great competitor against foreign countries in productivity and other nations will be able to benefit in their economic relationship with China.