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.
It is an interesting question because often policy makers are tempted to pursue this as a strategy to boost domestic demand in the face of a recession. If a country increases import taxes (tariff), then it may cause a shift to domestic demand.Higher tariffs on imports will increase the cost of imports, and therefore consumers will buy less imports and increased demand for domestic production.This will have a positive impact on employment and economic growth.t is an interesting question because often policy makers are tempted to pursue this as a strategy to boost domestic demand in the face of a recession. If a country increases import taxes (tariff), then it may cause a shift to domestic demand.