How dependent is Asia's economy on the United States?
With the recent troubles of the US economy and the sinking value of the dollar, how will this affect Asia? Is Asia dependent on the United States economy? If the dollar drops in value what does that do to the currencies of Asia? I have relatives in the Philippines and it sort of worries me.
Economics - 4 Answers
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1 :
It's a good thing for Asia. Because the dollar drops, that means the value of other currencies becomes stronger which makes the exchange advantageous for other countries other than US. It also means the Asian countries will be able to purchase more from the US because its value has gone down and they do not have to spend as much in order to buy the same thing.
2 :
Asia is sort of dependent on U.S. economy. I'm pretty sure the U.S. invests in foreign countries, and U.S. companies hire workers in Asia. The sinking value will not affect much, and a sinking dollar value is not exactly trouble. Some economists view budget deficits as a sign of strong economy because its citizens are able to afford more consumable goods. Exchange rates will be more favorable, though it doesn't matter much. The dollar isn't dropping that fast, so there's not much to worry about.
3 :
As far as China goes.... 21% https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html Scroll down to Economy.. then Export partners. If the US goes downhill, we will buy less consumer goods... which means a downturn for China. But I dont think that will happen on a huge scale.
4 :
"With the recent troubles of the US economy and the sinking value of the dollar, how will this affect Asia?" The sinking dollar will be good for Asian currencies. How much will it affect their lifestyles? Not much. Asians in general are pretty self-sustaining people both environmentally and economically. I would think that even if the US economy collapsed, Asians would still be okay, for the most part. Asian investors in the American economy and financial markets would be devestated, but they make up only a small part of the population. "Is Asia dependent on the United States economy?" It depends where. The Phillipines for example, wouldn't be affected much as compared to Saudi Arabia, which relies heavily on its oil exports. You will find that the United States is more dependent on Asia than Asia is on the US. If the US economy collapsed (not just receeded), which it will most likely do in the next 3-5 years, most of the world will be affected. The only places that would survive is places that sustain their own economy. Places where most of the jobs are domestic.
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