What is the likely impact of United States-China trade war on both of those countries?

Solutions

Expert Solution

The trade war has received an enormous amount of attention. Its impacts today have been limited because the U.S. and China have been a bit restrained. Lots of firms have gotten exceptions to these tariffs and there have been lots of delays in their full implementation. It’s also been the case that U.S. firms have been delaying making adjustments to their global value chains. What has been striking is that the impact of tariffs on U.S. prices has been one-for-one. These tariffs are unlikely to have a significant impact on manufacturing employment in the United States: the job loss that we observed as a consequence of import competition from China came primarily from factory closure, furthermore U.S. tariffs didn’t target all U.S. imports. They targeted imports from China. Looking forward, to the extent the trade war is dampening GDP growth in China, itcould happen political consequences at home. As for us, this is a defining moment in which we’re going to see whether the U.S. is willing to maintain its commitments to more open borders.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

The trade war between the United States and China might last for 2-4 years as the...

The trade war between the United States and China might last for 2-4 years as the world’s two largest economics have not found an efficient way to deal with their economic and trade problems, according to Douglas Paal. How do you think that all this would influence the economic and trade relations among China, ASEAN and Taiwan?

Consider the trade relations between the United States and China. Assume the leaders of the countries...

Consider the trade relations between the United States and China. Assume the leaders of the countries believe the payoffs to alternative trade policies are as follows. If both countries impose low tariffs, then both countries will gain $60 billion. If both countries impose high tariffs, then both countries will gain $40 billion. If one country imposes high tariffs, the country that has high imposed tariffs will gain $50 billion and the country that imposes low tariffs will receive $20 billion....

If trade war continues with China, what is the impact on US good that competes with...

If trade war continues with China, what is the impact on US good that competes with Chinese imports, US employment in firms that are in competition against those of Chinese imports, and US corporations' profitability that ships intermediate goods made in China and convert them into finished goods?

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 are the major challenges in trade (and national security) between China and United States?; What...

What are the major challenges in trade (and national security) between China and United States?; What are the differences in political economy between US and China that created the above major challenges?; What should be the short term and long term approach in resolving the issue? write as much as possible thanks

What are your thoughts on the ongoing trade talks between China and the United States? President...

What are your thoughts on the ongoing trade talks between China and the United States? President Trump has made it an important goal of his administration to try to level the playing for American producers. Without letting politics outweigh the economics, offer your thoughts on these trade negotiations. Most agree that an all out trade war would negatively impact both economies, at least in the short run. Is this a fight worth sacrificing for?

What is your favorite color? A large survey of countries, including the United States, China, Russia,...

What is your favorite color? A large survey of countries, including the United States, China, Russia, France, Turkey, Kenya, and others, indicated that most people prefer the color blue. In fact, about 24% of the population claim blue as their favorite color.† Suppose a random sample of n = 57 college students were surveyed and r = 10 of them said that blue is their favorite color. Does this information imply that the color preference of all college students is...

What is your favorite color? A large survey of countries, including the United States, China, Russia,...

What is your favorite color? A large survey of countries, including the United States, China, Russia, France, Turkey, Kenya, and others, indicate that most people prefer the color blue. In fact, about 24% of the population claim blue as their favorite color (Reference: Study by J. Bunge and A. Freeman-Gallant, Statistics Center, Cornell University). Suppose a random sample of 56 college students were surveyed and 12 of them said that blue is their favorite color. Does this information imply that...

What is your favorite color? A large survey of countries, including the United States, China, Russia,...

What is your favorite color? A large survey of countries, including the United States, China, Russia, France, Turkey, Kenya, and others, indicated that most people prefer the color blue. In fact, about 24% of the population claim blue as their favorite color.† Suppose a random sample of n = 59 college students were surveyed and r = 11 of them said that blue is their favorite color. Does this information imply that the color preference of all college students is...

What is your favorite color? A large survey of countries, including the United States, China, Russia,...

What is your favorite color? A large survey of countries, including the United States, China, Russia, France, Turkey, Kenya, and others, indicated that most people prefer the color blue. In fact, about 24% of the population claim blue as their favorite color.† Suppose a random sample of n = 57 college students were surveyed and r = 11 of them said that blue is their favorite color. Does this information imply that the color preference of all college students is...

Subjects