Conclusion – Trade Wars
Trade conflicts and the imposition of trade barriers have advantages and disadvantages. Short-term protection for industries can be achieved by it. This can be especially helpful in protecting emerging or small businesses. In this case, protectionist policies can support these industries, which may be important to future domestic output. On the other hand, prolonged trade wars are usually seen negatively. Lower consumption and increased expenditures are the main causes of this. Trade conflicts can reduce industry competitiveness in addition to causing market inefficiencies. Since there is less competition in both nations, industries may feel less pressure to develop, which could lead to a stagnation of manufacturing technologies.
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Trade Wars
Trade Wars: A trade war is an international conflict involving protectionist measures between countries over goods and services. A trade war may start when a country applies import restrictions or increases import tariffs in opposition to another. For example, when then-President Donald Trump slapped several tariffs on Chinese imports, the U.S.-China trade war broke out in the middle of 2018. China increased tariffs on American goods in retaliation.
Trade wars can start when one country thinks another is not being fair in trade. Groups within a country, like trade unions or industry supporters, may push leaders to make products from other countries less appealing, leading to a trade war. Trade wars may be harmful to both countries’ industries and consumers. They may spread to impact other industries as well.
In this article, we will look into the meaning, history, impacts, list, examples, advantages, and disadvantages of Trade Wars in detail.
Table of Content
- What is a Trade War?
- History of Trade Wars
- List of Trade Wars
- How are Trade Wars Fought?
- Impacts of a Trade War on the Economy
- Examples of Trade Wars
- Impact of US-China Trade War on India
- Advantages of Trade Wars
- Disadvantages of Trade Wars