World Perspectives

Tariffs and Foreign Exchange

In the complex dynamics of the global economy, it is sometimes difficult to discern what is cause and what is effect. Not surprisingly, however, the Chinese yuan has dropped 9 percent against the U.S. dollar since mid-April amidst the trade sanctions being imposed between the U.S. and China. This is the most recent significant devaluation since 2015 and it is also the biggest drop in the yuan in about 25 years.  Obviously, the imposition of tariffs on Chinese goods – and the threat of more – has impacted the yuan’s value. Additionally, the strong economic growth in the U.S. is supporting the value of the dollar. However, the yuan is a managed currency, limited to moving within a 2 percent band, and it is likely tha...

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From WPI Consulting

Weighing in on strategic realignment

WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.

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