Question

- What are the pros and cons of the belt and road initiative for countries receiving the investments from china?

- What is Rodrik’s view of state capitalism as practiced by China?

- According to Irwin, are most job losses in the U.S. due to imports from China?

Answer 1

1) the belt and road project of china connects china to other economies and makes trade and transportation easier.

pros-the econmies connected with china are high on poverty and this initiative gives better scope to reduce poverty by trading.

this project will also help to explore the un explored potential growth factors available in the countries. due to lack of infrastructure and other amenities many country were lacking in potential growth. this project will hope fully fill this gap.it will definitly improve connectivity and trade among nations which will bridge the gap eventually.

cons- different policy barriers could be one reason for barrier to trade. bio diversity loss, environmental degradation are some risks associated with the project. few market risks are also there to execute the project.

2) according to ridrik the fundamental cause of development in china is its institutionalframe work and socio economic relations. and it confirms there capitalistic character which creates more capital. rodrick favoured the idea of capitalism practiced by china.

3) according to IRwin , most job losses in the us are due to technology driven productivity growth and not imports from china. while many economist argued that to be true IRwin opposed the statement and showed that in 2009 when the employment increased there was huge trade deficit in us tregery so its not because of trade.