NORMAN, ELTON_BTM7300-12-8 2 NORMAN, ELTON_BTM7300-12-8 1 NORTHCENTRAL UNIVERSITY ASSIGNMENT COVER SHEETStudent: Elton Norman BTM7300 Dr. George Ackerman Scholarly Literature Review Assignment 8 Faculty Use Only Hello Elton, Thank you for submitting your Week 8: Brief Literature Review Draft for my review. This week is perfect for honing in one a theoretical framework. The theoretical framework is the foundation from which all knowledge is constructed (metaphorically and literally) for a research study. It serves as the structure and support for the rationale for the study, the problem statement, the purpose, the significance, and the research questions. The theoretical framework provides a grounding base, or an anchor, for the literature review, and most importantly, the methods and analysis. Conduct a brief literature review to find support for your theories. Consider arguments that oppose your beliefs and theories Apply answers to “how” the theory connects to your problem, the study’s purpose, significance, and design. Continue to work on using more credible and reliable resources as well as APA format. The resources and websites you are cited were not proper in the academic setting. Continue to work on spacing and format with the text and paragraphs. There were a few errors with in-text-citing and grammar once you correct this area you will excel. Review Owl Purdue for more information on in-text citing. Dr. George Ackerman 12/24/2018 Brief Literature Review Draft BTM-7300 Assignment # 8 Elton Norman Dr. George Ackerman 20 December 2018 Currency Manipulation Introduction Report released by CNN explicitly explains the subject of currency manipulation in a diverse way. According to Censky, (2010), currency manipulation is the act of changing the currency value against other currencies instead of leaving it free to fluctuate following the dynamics in the global market Censky, (2010), currency manipulation has a significant impact on the local economy. It is defined by the country’s currency value against the international standards and the exchange rate used. A country that is actively involved in exports and import has higher chances of facing the economic currency exchange challenges that can prompt manipulation of currency (Katz, 2015). As outlined in the CNN reports, China is perceived to be on the forefront for currency manipulation. This is report comes as a result of currency valuation report where the Chinese Yuan dropped significantly in 2016 following the US government action on the country’s export surge (Censky, 2010). Currency manipulation history The history of currency manipulation streams as early as 1998 when the Chinese government rolled its export trade into the United States following the unification of US and Chinese policies. The first sign of U.S. trade and current account deficits in the post-war era occurred in 1971. They were caused, in part, by a.

1. NORMAN, ELTON_BTM7300-12-8
2
NORMAN, ELTON_BTM7300-12-8
1
NORTHCENTRAL UNIVERSITY
ASSIGNMENT COVER SHEETStudent: Elton Norman
BTM7300
Dr. George Ackerman
Scholarly Literature Review
Assignment 8
Faculty Use Only
Hello Elton,
Thank you for submitting your Week 8: Brief Literature Review
Draft for my review.
This week is perfect for honing in one a theoretical framework.
The theoretical framework is the foundation from which all
knowledge is constructed (metaphorically and literally) for a
research study. It serves as the structure and support for the
rationale for the study, the problem statement, the purpose, the
significance, and the research questions.
The theoretical framework provides a grounding base, or an
anchor, for the literature review, and most importantly, the
methods and analysis. Conduct a brief literature review to find

2. support for your theories. Consider arguments that oppose your
beliefs and theories Apply answers to “how” the theory
connects to your problem, the study’s purpose, significance, and
design.
Continue to work on using more credible and reliable resources
as well as APA format. The resources and websites you are
cited were not proper in the academic setting. Continue to work
on spacing and format with the text and paragraphs. There were
a few errors with in-text-citing and grammar once you correct
this area you will excel. Review Owl Purdue for more
information on in-text citing.
Dr. George Ackerman
12/24/2018
Brief Literature Review Draft
BTM-7300 Assignment # 8
Elton Norman
Dr. George Ackerman
20 December 2018
Currency Manipulation
Introduction
Report released by CNN explicitly explains the subject
of currency manipulation in a diverse way. According to
Censky, (2010), currency manipulation is the act of changing
the currency value against other currencies instead of leaving it
free to fluctuate following the dynamics in the global market
Censky, (2010), currency manipulation has a significant impact
on the local economy. It is defined by the country’s currency
value against the international standards and the exchange rate

3. used.
A country that is actively involved in exports and
import has higher chances of facing the economic currency
exchange challenges that can prompt manipulation of currency
(Katz, 2015). As outlined in the CNN reports, China is
perceived to be on the forefront for currency manipulation. This
is report comes as a result of currency valuation report where
the Chinese Yuan dropped significantly in 2016 following the
US government action on the country’s export surge (Censky,
2010).
Currency manipulation history
The history of currency manipulation streams as early
as 1998 when the Chinese government rolled its export trade
into the United States following the unification of US and
Chinese policies. The first sign of U.S. trade and current
account deficits in the post-war era occurred in 1971. They
were caused, in part, by a series of competitive devaluations by
major trading partners in Japan and Europe in the 1960s.
In 2005, the Chinese government reformed its exchange
rate system policies. It announced that the RMB would no
longer be pegged and that the RMB exchange rate would
become “adjustable based on market supply and demand with
reference to exchange rate movements of currencies in a basket”
containing various currencies of major developed countries.
From 1947 to 1971, the United States operated under a
fixed exchange rate system based on the gold standard, which
committed the United States to exchange dollars for gold at $35
per ounce under the Bretton-Woods system of fixed exchange
rates. On August 15, 1971, President Nixon suspended the
convertibility of gold and imposed a 10% surcharge on all
imports (Stewart and Drake 2009).

4. According to Staiger, & Sykes (2008), the Nixon
administration strategized measures aimed at pushing Japan and
the members of the European Community to eliminate and
revalue the trade boundaries that initially existed. The
elimination was a strategic measure to remove those countries
with fixative track records and additional contributions to
common defense projects by the U.S. allies. Before the end of
1971, the European countries and Japan stood on the agreement
to revalue forcing the Nixon to suspend the important
surcharge. The following year was significantly impacted with
numerous transformations leading to the elimination of Bretton-
Woods and gold standard resulting to an elevation of U.S.
exchange rates.
Currency manipulation reports
Treasury was first required to make semiannual reports
on economic and exchange rate policies under the Omnibus
Trade Act of 1988. Since 1988, Treasury has identified three
countries as currency manipulators: Taiwan, Korea, and China,
with Taiwan, cited in 1988 and again in 1992. Each citation
lasted for at least two six-month reporting periods, while
China’s lasted for five periods, ending in 1994 (Sanford, &
Library of Congress. 2007).
Presently, the U.S. Treasury is poised to render a verdict
on President Donald Trump’s claim that China is manipulating
its currency as a trade war between the two nations intensifies
and rattles markets. These claims are alleged on the Chinese
1994 manipulation behavior which prospectively affected the
Treasury Department. However, following some
recommendation from the Treasury staffs, China did not meet
the criteria to be labeled as a currency manipulator.
Apart from China, some of the countries named as key

5. global currency manipulators include South Korea, Japan, and
Thailand. China has received a great amount of attention for its
exchange-rate policies, but China is not the only state engaging
in such policies. These countries exhibit significant economic
valuation activities on the global platform with regard to trade
and exchange policies (Bergsten, 2017).
Apart from the four, Bergsten, & Gagnon, (2012)
opens more insight currency manipulation activities practiced in
the Middle East. India is mentioned among the greatest
currency manipulators following their currency value in the
global economy. The question surrounding Middle East
currency manipulation activities, according to the research
findings, is concerned with trade activities and economic trade
factors practiced by the countries.
The primary driver for currency manipulation is still
unknown, but however, some research accords the malpractices
to the imbalance in the value of the dollar to the local currency.
Also, the economic activities performed by the countries
imposed a significant challenge to the global economic
especially when there is devaluation I the local country’s
economy in comparison to the global currency. For a country
like China, “Politicians often decry currency manipulation in
campaign speeches, congressional committee meetings, and
debates to prove to constituents that they will be tough on
countries trying to cheat the free market” (Hassan, et al 2016).
Benefit of currency manipulation
However beneficial it might be to the stakeholders,
currency manipulation has a significant impact on both the local
government and global market. As per Jaber, & Jaber, (2017),
“since trade happens through the exchange of money, currency
can be as important an influence on trade as the qualities of the
traded goods or services themselves.” Staiger, & Sykes, 2008)

6. argues differently stating the involvement of the government in
subduing the currency market export. According to him, the
practice violates the principles of free trade and force the
market to ignore normal pressures of supply and demand.
Staiger, & Sykes assertions maybe faced-out by Sanford, (2008)
perception on the support for free trade. According to him, the
free trade supports US exports and American Jobs, but free
trade in goods and services requires free trade in currency.
Currency manipulation is illegal since it involves
artificial reduction of prices allocated on exports and then
flooding other economies with those exported products. The
practice may be beneficial to the consumer but has a long-term
impact on the global economy and the local producers. It
involves violation of the international exchange rate policies
and affects the economies through imposing of extra charges to
the stated currency rates.
Effect of currency manipulation to the global economy
Manipulation of currency, as explained by Katz, (2015),
has significant implication to the US economy which determines
the dynamics in the global economy. As reported by Jaber, &
Jaber, (2017), a country like China has stimulated a significant
level of imbalance in the US-China economic platforms. The
relationship between the exchange rate policy and international
trade is a question of concern on the global market.
In support to Katz, assertions, Nelson, (2013), goes
further to explain that “if prices are flexible the effect of
exchange rate intervention parallels that of a uniform import
tariff and export subsidy, which will have no real effect on
trade, an implication of Lerner's symmetry theorem.” (Nelson,
2013), The trade policies and trade ties are some of the long-
term implication arising from the equivalent economic crises.

7. Control measures for currency manipulation
While the implication is still impounding, various legal
and legislative institutions are taking shape to control the
manipulation process that has deeply rooted in the global
market. Countries involved in activities are on the look to
ascertain the regard to global currency policies (Wong, 2017).
According to the US Treasury Department, the Trade
Facilitation and Trade Enforcement Act of 2015 should take the
lead in publicizing awareness to the local governments and their
role in controlling the activity (Sanford, & Library of Congress
2007).
The US Treasury Department, since 2015, is performing
a three- criteria analysis involving material current account
surplus, significant bilateral trade surplus and the persistent,
one-sided interventions regarding foreign currency exchange
activities. Also, the US government is lobbying for political
involvement in the control of the manipulation process.
According to Wong, (2017), the US is lobbying the targeted
governments to take heed for their currency globalization
through the establishment of legislative policies.
In the most recent report on the exchange rate policies of
America's largest trading partners, the Treasury declined to
name China, or any country for that matter, a currency
manipulator. Instead, as it did in April, six countries made the
monitoring list: China, Japan, Korea, India, Germany, and
Switzerland.
Current currency manipulation trends
China
China has often been blamed for keeping its yuan
artificially week while making its exports cheaper. Also, the

8. renminbi, another currency, has been tumbling down over the
year at more than 9 percent against the dollar. The US
government, through Trump, is greatly concerned about the
depreciation. It is, therefore, making necessary strategies to
ensure that the currency is used as a competitive devaluation to
increase its value against the dollar. The yuan’s drop has been
fueled at least in part by market forces from the trade dispute,
according to Mark Sobel, a former U.S. Treasury official who
worked at the department for nearly four decades (Glaser, &
Viers, 2017).
During a meeting held by the IMF, the People’s Bank of
China Governor Yi Gang alleged the Chinese government
doesn’t want to make use of its currency a tool to deal with the
trade conflict following the current war on the tariff. Despite
all this, the White House is mounting more pressure on the
Chinese Mnuchin for public shame.
More countries scrutinized
According to the US Treasury, the number of countries
under examination may be significantly increased. This
expansion targets country such as Thailand, Russian, Vietnam,
Ireland, Indonesia, or Malaysia. All these countries are
strategically on target following the active trade activities that
have been on increase in the recent year with the US
government. As stated by Shaikh, & Weber, “Expanding the list
would be a clear signal of intent that the administration wants
greater transparency on the currency policy of key trading
partners, said Viraj Patel, a currency strategist at ING Groep
NV in London. “Implicitly it also signals the intent to avoid
‘too strong’ a dollar in the medium-term and this is a subtle but
important shift in dollar policy that shouldn’t be taken lightly.”
(Shaikh, & Weber, 2018).

9. American largest trade partnership (key targeted currency
manipulators)
Total trade in descending order
China
Chinese Yuan
$428 Billion
Canada
Canadian dollar
416 Billion
Mexico
Mexican peso
405 Billion
Japan
Japanese yen
143 Billion
Germany
Euro
123 Billion
S.Korea
South Korean won
84 Billion
U.K.
Pound sterling
83 Billion
France
Euro
58 Billion
India
Indian rupee
58 Billion
Italy
Euro
52 Billion
Taiwan
New Taiwan dollar

10. 49 Billion
Brazil
Brazilian real
47 Billion
Netherlands
Euro
47 Billion
Ireland
Euro
45 Billion
Switzerland
Eswatini
42 Billion
India
India was one country unexpectedly added on the U.S. Treasury
watch list. According to the Treasury findings, the country has
significant trade surplus with the United State with increased
purchases of foreign currency in the previous years. Currently,
the country has engaged in opposite trades activities with the
Reserve Banks of India with an extensive financial expenditure
of over $26 billion used in trying to shore up the rupee. This
resulted to the worst performing major currency in 2018
(Harding, 2017).
Germany
Trump has criticized European Union countries for
“manipulating their currencies and interest rates lower.”
Germany, which has been on Treasury’s monitoring list since
April 2016, has faced the toughest criticism from Trump and the
Treasury over its large current account surplus (Shaikh &
Weber, 2018).
Thailand

11. Shaikh, and Weber, (2018) states that if Thailand is added to
Treasury’s twice-yearly review, analysts widely agree that it
could be branded a currency manipulator because it meets all
three criteria set by Congress.
Conclusion
To sum up, currency manipulation has aggregated foreign
exchange reserves following the increased foreign participation
in the activities. Listed among the leading manipulators
globally, China has intrigued into diverse exchange rate
reserves implication legal, ethical and economic issues both to
the local government and international trade policies. Two
most important organizations that should square their trace on
controlling the manipulation exercises include International
Monetary Fund and World Trade Organization. “One criterion
for being labeled a currency manipulator is a trade surplus with
the U.S. of $20 billion or more. India’s was at $22.9 billion in
2017.”
References
Bergsten, C. F. (2017). Currency Manipulation and the NAFTA
Renegotiation. The International Economy, 31(3), 30.
Bergsten, C. F., & Gagnon, J. E. (2012). Currency
manipulation, the US economy, and the global economic order
(pp. 12-25). Washington, DC: Peterson Institute for
International Economics.
Censky, A. (2010). What is currency manipulation, anyhow.
CNN Money, 11.
Glaser, B. S., & Viers, A. (2017). TRUMP AND XI BREAK
THE ICE AT MAR-A-LAGO. Comparative Connections: A
Triannual E-Journal on East Asian Bilateral Relations, 19(1).

12. Hassan, T. A., Mertens, T. M., Zhang, T., & National Bureau of
Economic Research. (2016). Currency manipulation.
Jaber, M., & Jaber, K. (2017). Currency Substitution and Price
Endings: Right Digit Effect. Journal of Global Marketing,
30(4), 238-255.
Katz, R. (2015). The Myth of Currency Manipulation. The
International Economy, 29(3), 40.
Nelson, R. M. (2013). Current Debates over Exchange Rates:
Overview and Issues for Congress.
Reilly deLutio, C., Trostel, P. A., & Center, M. C. S. P. (2016).
2016 TRADE POLICY ASSESSMENT.
Sanford, J. E., & Library of Congress. (2007). Currency
manipulation: The IMF and WTO. Washington, DC:
Congressional Research Service, Library of Congress.
Staiger, R. W., & Sykes, A. O. (2008). "Currency
manipulation" and world trade. Cambridge, MA: National
Bureau of Economic Research.
Wong, C. S. (2017). Regulating Currency Manipulation:
Political, Legal and Economic Barriers to Reform. Journal of
World Trade, 51(4), 691-710.
Financial Times. (February 12). Available at: https://www. ft.
com/content/d2aeb4bc-ef71-
11e6-
930f-061b01e23655 (Accessed February 16, 2017).
Shaikh, A., & Weber, I. (2018). The US-China Trade Balance
and the Theory of Free Trade:

13. Debunking the Currency Manipulation Argument (No.
1805).
Ridley, D. 2012 The literature review: A step-by-step guide for
students.
Read Chapter 8: Being Critical
Bloomberg, L. D., & Volpe, M. (2008). Developing and
presenting the literature review.
Harding, R. (2017). Donald Trump’s Anger at Asian Currency
Manipulators Misses Target.
http://srmo.sagepub.com.proxy1.ncu.edu/view/completing-your-
qualitative- dissertation/SAGE.xml Review Chapter 2
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Instructions
For this assignment, please find at least an additional 5 to
7more scholarly sources to include in your literature review.
List each resource and briefly describe how each will be added
to your literature review. In other words, why was it added?
How will it contribute? For example, did you add a resource
based on instructor feedback? Explain. Or did you find while
writing that you made an assertion that needed to be supported?

14. Explain.
Length: 2-3 pages, not including title and reference pages