The Research On The Impact Of RMB Appreciation To The Import&Export Trade Balance Of Jiangsu Province

Exchange rate plays a role of price conversion in the foreign trade, meanwhile it’s also an important comprehensive price index. Exchange rate is a media between international price and domestic price, it’s a critical index in the price system of foreign trade。Its fluctuation will directly affect the development of foreign trade of a country。Every country in the world abandoned the fixed exchange rate system and put floating rate system into effect successively after the collapse of Bretton Woods system in1973。 Compared with fixed exchange rate system, lawful money exchange rate of different countries gains bigger undulatory property because of floating rate system。 At the same time, floating rate system has also affected the growth speed of foreign trade in different countries。So, international trade gets an impact from it. From this aspect, scholars in different countries begun to realize that the fluctuation of exchange rate can affect the development of international trade, meanwhile, they focus on this phenomenon which is related to this matter and started their research and analysis。JIANGSU province is oriented by foreign economy, according to this fact, the usual development of foreign trade will give an extreme influence on the stable operation of JIANGSU economy。 On the basis of related theory and method, this paper will research the JIANGSU foreign trade which is impacted by the fluctuation of exchange rate according to the trade income and consumption。 After the research of theory and application, this paper gives some practical suggestions which satisfy JIANGSU objective circumstances。At the beginning, this paper describes the development process of exchange rate regime in China and collects the research result whether the exchange rate fluctuation will affect the foreign trade then, then reviews former researchers’ achievement of related theory, explains the principle of foreign trade influence caused by the fluctuation of exchange rate。 I review the the development of JIANGSU foreign trade, then analyze the impact on the income and consumption of JIANGSU foreign trade on the basis of the listed data and theory, Finally, this paper provides some suggestions which will relieve adverse effect of RMB appreciation according to former analysis。...