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Consider, if the yuan rose in price by 100% it would mean the price of the iPhone will be halved and more of the workers who toiled the long hours will be able
by el_presidente 15y ago
Consider, if the yuan rose in price by 100% it would mean the price of the iPhone will be halved and more of the workers who toiled the long hours will be able to afford one - or they can cut down on overtime instead.
Wouldn't the price of the iPhone also go up by 100% since they are the ones who make it?
- meric 15y agoNo, because the value added by labourers to an iPhone is less than 100%. Much of the rest of the value added are from other countries. But you do provoke a point - Would Chinese workers be making the iPhone if the yuan rose by 100%? There's a good chance they might not be. Yet, if the rise of the yuan was not a result of intervention by governments, it would mean that the yuan rose because there is high demand for China's exports - As long as China's exports remain in high demand there will be further growth in its exports industry, making sure there will be enough work for China's workers.