Since RMB is artificially fixed at lower than actual value, the cost of producing price has to go up because of the increasing cost of materials and labors. Material and labors have to be paid in more RMB because of the artifically low exchange rate. Therefore the rice price will have to go up.
安校, 莫急 (I can only write English fast). Your Rice example is not a good example. Rice is much cheaper in China than in US. The real scenario is more likely this. -- king - (295 Byte) 2005-4-23 周六, 13:54 (612 reads)