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.
US import tariffs may increase US demand at the expense of demand and growth in Asia. If the world economy was growing very strongly and a small country raised tariffs, it is possible that other countries wouldnât bother to retaliate.In this case, the import tariffs may play a role in boost domestic demand.t is an interesting question because often policy makers are tempted to pursue this as a strategy to boost domestic demand in the face of a recession. If a country increases import taxes (tariff), then it may cause a shift to domestic demand.