Is It Necessary to Separate Retail Banking from Investment Banking? Discuss Possible Advantages and Disadvantages of Such a Separation Using Academic Literature

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Disadvantage of increase Chinese Exchange for China - International Trade
Why USA want to increase Chinese Exchange Rate
As we all know, China is a big processing and export country, we can see many products all be made in China. Therefore, when the Chinese exchange rate increased, the demand of Chinese product for American companies and residents will be reduced, because the Chinese exchange rate increase, the cost of Chinese products will be increased at the same time, so they have to expend more dollars for Chinese products. The competition of Chinese products will be decreased in American market.
For example, the price of one Chinese phone is 100 RMB that be exported to America with 8.264 exchange rate, so the price of this phone in America is $12.1. However, if the exchange increased to 7.0, and the price of this phone is $14.2. According to increase Chinese exchange rate, USA can reduce imports from China and this can be as a Non-tariff barriers. In addition, with the increase of Chinese exchange rate, China will import more products from USA, duo to the lower cost. Therefore, USA want to increase Chinese Exchange not only reduce the export of China, also increase the amount of export to China.
Finally, China is the biggest creditor country for America and the amount of national debts is about 1.4 trillion. So the exchange rate increased, America can pay lesser money back for China with lower exchange rate. For example, if the exchange rate is 7.6 than the amount of national debts America have to pay for is 1.4 x 7.6 = 10.64. But now the exchange rate is about 6.30 than the amount reduce to 1.4 x 6.3 = 8.82 trillion. So this can be a main reason for why America want to increase Chinese exchange rate.

Advantage for increase Chinese Currency
Increasing of Chinese Exchange rate will effectively improve Chinese term…...

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