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Economics - Effect of US-China Trade War On Global Economy
Effect of US-China Trade War On Global Economy
Economy has always been the engine that is running a nation’s security. In 2020 we are way pass the time when the sovereign states were self-dependent on managing their economy. Trade has been the backbone of every nation. All the nations of the world are inter-dependent on each other in one way or the other with respect to trade. For example the goods that you see at Walmart are stocked there on the shelves from various different countries. If one of them stops this supply it will surely affect the revenue from that particular area of the shelf. This will result in the company to substitute the product from some other country. This is how Global Trade works- One country’s loss is the other country’s gain (Devaranjan et al., 2018).
Whenever a country wants to promote its domestic goods it levies a tariff on the imported goods to protect its domestic industry as it will inflate the costs of the foreign goods and the people would have to buy the domestic goods as a substitute. In the cases where heavy tariffs are placed and the other country retaliates in the same force, a trade war begins. This essay will draw essential focus on origin of the United States and China trade war and its repercussions on the economy (Ji, Zhang and Zhu, 2020).
United States and China were majo