Trade war implications
Based on the information we covered last week on International Trade, there could not be a better time to discuss many of the issues of “protectionism, tariffs, and trade barriers” from Chapter 9 based on what is going on in the U.S. and our trading partners, China and Mexico to mention a few. This ensuing trade war has HUGE implications for US producers, consumers and the rest of the world.
https://mobile.nytimes.com/2018/07/05/business/china-us-trade-war-trump-tariffs.html?emc=edit_na_20180706&nl=breaking-news&nlid=61604029ing-news&ref=cta (Links to an external site.)Links to an external site.
http://www.chicagotribune.com/business/ct-biz-us-china-trade-war-prices-20180706-story.html (Links to an external site.)Links to an external site.
These are just a few links, all one must do is to google, “trade war implications,” etc., and more than you can ever digest will appear. I want to know your thoughts on the implications of these tariffs based on what you have learned thus far in class.
Please post a 1-2 paragraph well-thought out discussion in the forum and respond to at least one classmate by Sunday night. This can be opinionated, to an extent but it should be based on citations and research, which is easily obtained. Please make sure to cite ALL of your sources within your essay.
The US-China trade war could have a lasting impact on US businesses, consumers, and the rest of the world. This trade war can directly interrupt global supply chains making it harder for companies to deliver products or resources. A tariff reduces the quantity of imports which would push to the point of equilibrium without trade. Companies who import parts from China will see increase in prices which may lead to buying smaller quantities. Due to smaller quantities, the company’s product price may rise to accommodate the lack. The price increase may turn customers away, and the demand for the product may go down. Prices of everyday necessities like batteries will increase making buyers worse off. Many retailers who rely on imports from China could see prices go up. Consumers could see cost of living become tight. China is dependent on exports to fuel their economic growth, and about 20% of exports go to the US. In addition, it was stated that a complete trade war risks putting the US economy into recession.
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