In: Economics
Choose a topic of the course and compare what happens in US and what is the current situation in China or In your country and how you would change the Chinese (or your country) - or the American - approach based on the esperience of the other country (for example compare the tort system in your country and in USA and tell how you would change your country - or the American - approach to the issue based on how things have worked in the other country).
at the least 5 pages
should have 1-2 pages of description and 3-4 pages of independent,’original analysis.
TRADE WAR BETWEEN US AND CHINA A trade war is an economic conflict arised from extreme protectionism in which nation impose or rise the tariffs or other trade barriers against each other in retaliation to trade barriers created by the other party. Increased protection causes both nations output compositions to move towards their autarky position.According to the World Bank's Global Economic Prospect, the global economy has slowed to its lowest pace in last years as international trade and investment have been feeble than expected. Global trade scenario has been severely affected by the trade war between the US and China. The conflict arised between US and China regarding trade tariff imposition on each others goods.This retaliating effects of nations affect the international trade; it also causes the inflationary situation by tariffs increases prices of imports.In short run this tariff imposition may protect the domestic products. But in the long run, a trade war costs jobs loss and depression in economic growth (by suppressing demand for goods as they become expensive) for all countries involved in the trade.On July 6, 2018, the United States administration slapped a tariff of 25% on $50 billion worth of imports from China. China responded immediately with retaliatory tariffs on a similar way. On April 2, China announced tariffs on US goods worth $3 billion on some 130 American products like fruits, nuts, wine and steel pipes, as well as pork and recycled aluminium. |
Trade Protectionism
Smoot Hawley Act - a lesson for protectionist This was designed to protect U.S. farmers from cheap agricultural imports coming from Europe (which was increasing farming output) after the destruction happened after the World War I.
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Pros and cons
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here are many complexities in the goods that are traded between the two or more countries. For example, A “Chinese” product comprises elements from other countries.The logo on the iPhone notes, “Designed in California, assembled in China”. The iPhone costs Apple $220. It is assembled in China for $6.50, but the rest of the cost is for its sophisticated components made in Germany, South Korea, Japan and the US. In other words, any “trade war” between the US and China will have consequences for many other smaller countries — there will be collateral damage.According to The Economist, 30% of the value of goods that China exports to the US is added elsewhere — Taiwan, Malaysia, Singapore and so on. If the situation worsens, “countries entwined in Chinese supply chains will suffer”. Criticism towards US approach
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China must change their export oriented economy to strong self reliant approach; over dependency on trade shivers the economy and acts as a hurdle for sustainable development of the nation.
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