Now shopping mall giant (Dalian) Wanda, owned by Chinaâs richest man Wang Jianlin, and Vanke, the worldâs biggest residential real estate developer, founded by the mountaineering-loving Wang Shi, have âstunned the capital markets,â in the words of Chinese news site The Paper, by announcing a âstrategic partnership.â.
The second macroeconomic consideration of increased imports is the impact on exchange rates. As we have shown in the previous section, as U.S. consumers increase their consumption of imports, the supply of dollars in foreign exchange markets rises.
Smuggling - If quotas and tariffs ultimately raise the price of domestic goods so the goods are now much more expensive than similar goods sold in foreign countries, this can incentivize or encourage consumers or entrepreneurs to utilize a black market or find other ways to get foreign products at cheaper rates.