Trade wars are, at least in short term, bad for people as they lead to increased prices. On a macro level, they lead to poverty in poor developing countries that do not enjoy a bargaining power concerning terms of trade with super powers.

My country is enjoying cooperation with China which is big market for coffee.

Trade wars are, at least in short term, bad for people as they lead to increased prices. On a macro level, they lead to poverty in poor developing countries that do not enjoy a bargaining power concerning terms of trade with super powers.

The effects of trade wars affect poor people

Less trade and rich countries can contain their riches. Pushes other countries outside the more privileged ones down. Causes economic global slow down.

Ya if it continues, there will be further slowdown in the economy.

It will affect countries that export a lot to the two big economies

Hello, trade war is when a nation imposes tariffs or quotas on imports and foreign countries retaliate with similar forms of trade protectionism. As it escalates, a trade war reduces international trade.

A trade war starts when a nation attempts to protect its domestic industry and create jobs. In the short run, it may work. Tariffs are supposed to give a competitive advantage to domestic producers of that product. Their prices would be lower by comparison. As a result, they would receive more orders from local customers. As their businesses grow, they would add jobs.

In the context of the above considerations, the following question is also current: Is economic cooperation and trade between the world's largest economies developing or is this cooperation diminishing due to the current trade wars?

Does the current policy of limiting trade by imposing new prohibitive tariffs and other protectionism instruments of current trade wars may lead to such a serious slowdown in economic growth that it may lead to a global economic crisis?

Please reply

I invite you to the discussion

Thank you very much

Best wishes

Following answers

Following

Dear Rafiq Idris,

Trade wars can lead to a decline in revenues in the state budget if the country developed exports and obtained high income from the state budget. In this situation, trade wars can lead to a public finance crisis if the state budget has a high budget deficit and public finances are burdened with high public debt. In this situation there is a systemic risk of increasing indebtedness and loss of liquidity in the state finances. This type of situation can lead to an economic crisis.

Best wishes

Hello everyone,

Please, I need some help. I am doing my master in International Trade but having some difficulties in choosing the right thesis topic. I am more interested in the U.S --China economic conflict surrounding the (trade war).