Question

Who are the winners and losers in international trade? Discus the positives and negatives of a government placing barriers on international trade. With the current Covid-19 pandemic and the role of China in the pandemic, how do you believe the U.S.A. should structure its trade practices in regards to China? You will want to examine why the U.S. trades with China and is there a potential trading partner substitute for China, or should the U.S. continue developing the "Phase 2" of the U.S. - China trade agreement?

Answer 1

There will be gainers and losers in international trade. Consumers and firms who are now able to buy imported low-cost goods are the obvious benefits from trading. In international trade, the winners include consumers and domestic companies who export goods.The losers are the most obvious third parties selling products that cannot come to the global market. These companies are likely to go out of their way to make their products competitive or not make other products.

Government usually imposes barriers to protecting or punishing a trading partner. The benefits of trade protectionism include improved trade balance and the emergence of emerging domestic industries. But the downside of this is the lack of financial efficiency and the lack of choice for consumers.
Covid-19 China was the one most responsible for the spread of the disease. The Covid-19, which broke out in China, had to try to contain itself there. Unfortunately, it spreads around the world and destroys the world economy. Countries including the US have accused China of taking responsibility for it. They also blame China for its commercial gain.

Due to trade issues with China, the Trumb administration has decided to review its trade relationship with China. China has decided to reduce its trade deficit with China. Trump has announced a 25% tariff on $ 50 billion of Chinese exports.This resulted in a trade war between the two countries.

There are a number of reasons why US trade relations with China continue. For example, although the US has lost some manufacturing jobs due to trade deficits, US companies sell cars, trucks and some manufacturing equipment to China. Thus gains. Moreover, people get cheap goods from China.China is one of the largest consumers in the world .China is a good market. Although there are countries to replace China, the action of both countries is needed globally.