Now shopping mall giant (Dalian) Wanda, owned by Chinaâs richest man Wang Jianlin, and Vanke, the worldâs biggest residential real estate developer, founded by the mountaineering-loving Wang Shi, have âstunned the capital markets,â in the words of Chinese news site The Paper, by announcing a âstrategic partnership.â.
The second macroeconomic consideration of increased imports is the impact on exchange rates. As we have shown in the previous section, as U.S. consumers increase their consumption of imports, the supply of dollars in foreign exchange markets rises.
From the broad macro perspective, a stronger dollar benefits the domestic population by improving their terms of trade with the outside world. By that, economists mean we get more imports (the benefits of trade) per dollar of exports (the cost of trade). Much bad trade policy is based on the confusion over which is the cost of trade and which is the benefit.