In: Economics
Assume that Trump is re-elected President. Analyze the impact of this event on the China-US trade dispute. Your answer will have two parts a) Discuss the method/framework that you are using to perform the analysis. b) Using the method that you described above, quantify the impact on China’s exports and imports from the US.Assume that Biden is elected President. Analyze the impact of this event on China-US trade dispute. Your answer will have two parts a) Discuss the method/framework that you are using to perform the analysis. b) Using the method that you described above, quantify the impact on China’s exports and imports from the US
a. When Donald Trump is re-elected, it will impact the trade between US and china. This built argument regarding the trade maker with the countries. The economy of america solves the underlying economic concerns that the trade between china and USA by resolving the trade war. The effects of the business war was seen through the policies by the trump government. The prioritization on the trade deal from all the dimensions of the business policies. The environment for china and USA changes by re-elections and regulations of trade war also changes the interests. The american secures the knowledge for the trade and the trade restrictions will increase.
Trump also argued that the restrictions and tariffs would shrink the trade war of US with china and will cause companies to bring jobs back to the US. The trade war will caused economic pain in china and USA. The president will led to diversion of trade flows away from the countries.
b. The imports and exports are affected by the changes made in trade by the usa government. If USA stops importing the goods from china. This will decrease the GDP of china and Usa by at least 3% which would negatively effect the economy growth. Although the trade agreement between China and america, that will become a part of trade flows and commitments. The exports and imports will be restricted by the policies and procedures by the government. The global trade defiit will decrease the capital inflow. Many countries also helps to finance the trade Our global trade deficit is simply the mirror image of this large capital inflow. Deficit.