Trade war

Trade War

A trade war happens when one country retaliates against another by raising imports tariffs or placing restrictions on the opposing countries import.

In the global economy a trade war can become very damaging to the consumers and businesses, this can affect many aspects of both economies. Trade wars are a side effect of protectionism economy. Government action and policies of strict international trade. The aim is to protect the domestic businesses and jobs from foreign competition.

The basics of a trade war:

Trade wars can start if one country seas that a competitor nation as unfear trading practices, this wars also desalt from a misunderstanding related to benefits of free trade.  

A trade war is different from sanctions. The war are detrimental effects on the trading relationship between two countries. On the other side sanctions deal with other goals, there are not strictly related to trade. In the edition the tariffs governments can place a limit on import quale’s, set products standers or create subsidies to fight outsourcing.

The advantages and disadvantage of a trade war:

Advantages:

-A trade war protects the massive companies from unfair competitions.

-It increases demand for domestic goods

-It promotes local jobs growth

-It improves trade deficits

-It policies nations with an unth trade policies

Disadvantages:

-A trade war increases costs and generate inflation

-It cases marketplace shortages and reduces choice

-It discourages trade

-It slows economic growth

-It creates tensions

In 2016 Donald Trump express his views on many trade agreements, he promest the bring back manufacturing jobs back to the US after his elections he started a protectionist campaign and he threatened to the US out of world trade organization.

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