(a)[2]
Describe, using Fig. 1.1, the way the yuan’s value against the US dollar changed from 2014 to 2017.
(b)[4]
The US President threatened to raise protectionism in the US economy. Explain, using a diagram, how one of the protection methods mentioned in the article can operate.
(c)[4]
Explain two effects of the fall in China’s current account surplus for China’s economy.
(d)[4]
Explain two likely reasons why China has chosen a managed float exchange rate system.
(e)[6]
Discuss who would be the winners and the losers from a protectionist ‘trade war’ between the US and China.