As you may notice a true trade war between China and the U.S and the same...

As you may notice a true trade war between China and the U.S and the same with the European Union. Could you explain what's going on and how this disorder and disagreement in macro-economic policies will impact the international economy and impact the US economy? explain

Solutions

Expert Solution

A trade war is a back and forth dispute wherein a country imposes tariff on the imported goods of other country in order to restrict trade in response to this the other country also imposes taxes on imports on the contrary to it the US raises concern about theft of the intellectual property by the China.

Trade is a effective measure to increase the economic growth.The IMF have said the growing protectionism would hamper the world economic growth.Taxing imported goods would make the goods costlier for the cunsumers within a country would result in decrease of household consumption which is not good for the economy also some time in economics it is less costly to import than to produce so discouraging imports will results more costly production hence trade war damages busineses as well as household confidence. It creates an environment of mistrust and fear certainly not good for international economics.By imposing taxes on steel and aluminium The agriculture sector in US fears the counter tariff that will be imposed by the Chinese government .Also the extraction of steel and aluminium is costly than imported the price to be paid by US consumer increases hence hamper the household consumption which is bad for US economy

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

The trade war between the U.S. and China has been in the headlines for sometimes. The...

The trade war between the U.S. and China has been in the headlines for sometimes. The trade war comes as a shock and significantly affects countries and companies across the globe. Discuss the impact of the trade war on Malaysia at least in the following ways. 1. Explain the mechanisms of the trade war and its current state. 2. Analyse how the trade war has been affecting Malaysia. 3. Make a prediction on the impact of the trade war on...

The benefits of the trade war on the U.S. and China.(better to be specific)

The bilateral trade war between the U.S and China has lasted for over two years. The...

The bilateral trade war between the U.S and China has lasted for over two years. The issues mentioned in the trade war include trade imbalance, IPR protection state-owned enterprise (SOEs), and currency manipulation etc. Please choose 2 of the above-mentioned issues, provide a brief explanation, comment on its role in the trade war. Then answer the following questions: What are the main causes of the conflict between the two countries? How trade-war develop in the future? please need 150 words...

A) Topic : Elaborate the China-U.S. Trade War and the impact to China Business Environment as...

A) Topic : Elaborate the China-U.S. Trade War and the impact to China Business Environment as follows: i) Briefly elaborate the trade practices and their effects which the current U.S. President, Donald J. Trump claims are unfair such as the growing trade deficit, the theft of intellectual property, and the forced transfer of American technology to China from 2010 to present. ii) Analyze the outcomes of the China-U.S. Trade War and U.S.’s subsequent policies impacts to current China Business Environment...

What do we say? How the U.S-china trade war has escalated? How the trade war has...

What do we say? How the U.S-china trade war has escalated? How the trade war has played out? What could be hit by the new tariffs? Has the trade war hit the markets? what other trade battles are going on? winners and losers? economic theories involves? impact of this war?

name a U.S. firm confronting the negative consequences of tariffs from the U.S.-China trade war. In...

name a U.S. firm confronting the negative consequences of tariffs from the U.S.-China trade war. In your discussion of the first article, you must explain the strategies employed by the firm to manage the negative effects of trade tariffs

If you need to do a research design report about the trade war between China and...

If you need to do a research design report about the trade war between China and US. Whom would you survey to find first-hand information concerning your research statement?Why did you choose this group of people to focus on? What is the population for your survey? Why did you choose this population? What is your sample size? How your sample will be chosen? How the term random in relation to your survey? Will you need a mathematical formula to choose...

Question