The budding trade war between the U.S. and China has great potential to upset the relative calm of global markets. Their two-way trade is estimated to be worth more than US$ 640 billion annually. This relationship will evolve dramatically if new tariffs involving hundreds of billions of dollars come into effect. Industries are likely to be negatively affected as producers and corporate interests on both sides to jockey for survival, from agriculture to technology.
In short, a disruption of the existing trade relationship
between the US and China has the potential to redefine
international economics. Aside from an intensive revaluation, the
consequences will be exchange rate volatility. Periodic Volatility:
Short-term volatility will plague the USD as announcements for new
tariffs or the enactment of existing ones become public.
Fed Policy: U.S. decisions are the primary drivers of the value of
the US Dollar. Fed. Fed. Increases in the federal funds rate limit
inflationary pressures generated by strong economic performance,
fostering monetary power. Future plans include four-fold increase
of the federal funding rate in 2018, to 2.5 percent by
year-end.
It's important to remember that although a trade war between the U.S. and China is daunting on many fronts, it's a fluid situation. It is clear that, as conversations continue, both sides are interested in preserving their economic prowess. In the case of a major downturn in these economies, a cease-fire can come in short order. An extended trade war may be more bad news for the economy at large. Enterprises may refrain from investing in new plants or hiring until a trade agreement is in place. Such a pullback could lead to slower growth in employment and, in turn, affect consumer spending, which is the US economy's biggest driver. "That's going to be a concern," Still, a lot needs to change before the economy takes a real turn for the worse. The trade war could be resolved relatively soon and, in turn, would encourage firms to boost investment and persuade consumers.
how has the U.S. and China Trade war impacted the global market, foriegn currency, and stock...
Which of the following is NOT an example of the impact of the US-China trade war? a. Decrease in global trade b. Decrease in China’s exports to the U.S. c. Decrease in the U.S.’ imports from Vietnam d. Decrease in the U.S.’ foreign direct investment in China
What is the reason for the trade war with China? Why doesn't China allow U.S. companies to get access to their 2 billion consumers? No google, no youtube, no Facebook, why? Is Trump correct for initiating this trade war? Make a case.
Explain in 2-3 paragraphs how the trade war between the US and china affects consumers in the long run, who you think is winning, and how this affects the global market.
The U.S. dollar became the unofficial world vehicle currency after the First World War. At the end of the Second World War the Bretton Woods Agreement formalized the dollar as the world's vehicle currency. Please discuss 1.) the purpose of a vehicle currency for global use (100 words minimum) and 2.) how it impacts the U.S. (100 words minimum). Please include at least one external source to support your answer. Answers with less than the minimum word count and/or no...
Research the current trade war with China. Why has the Trump administration decided to stick it to China ---all of a sudden? How did we get here? What does it mean for both sides of the dispute? Who's “winning”? How is affecting consumer prices and/or current marketing practices?
Describe what has happened in this trade war between the US and China, both in terms of policy changes on both the US and Chinese sides. Then discuss what you would recommend the US do in order to get China to change its trade policies with the US, particularly in terms of the requirements it puts on US firms wanting to do business in China (give them their technology, etc) and in terms of creating a more balanced trade with...
4. Some are urging that China will try to dump the U.S. Treasuries as part of the ongoing trade war. Although it is not likely to happen, what will be the impact on (1) the value of the U.S. dollar (appreciate or depreciate) and (2) the interest rate of the U.S. market (raise or drop) if China really sells a lot of Treasuries holding at a low price?
Answer the following questions as briefly and precisely as possible. (5 points each) 2. a. Trade war between China and the U.S. has been escalating in recent weeks. What are the main reasons for the trade war to start? Discuss at least two reasons. Which countries (and groups within a country) most likely support international labor standards? Explain why b. c. Explain why some countries prefer import quota instead of import tarif? Contrary to what trade theory predicts, some countries...
2. Last week, the United States and China signed a trade deal, de-escalating the trade war that was going on for two years. This event was well received by the stock market. What did this "deal" involve? Which points of contention between the two countries did it resolve, and what are some that require further negotiations? 3. The United Kingdom of Great Britain and Northern Ireland is set to leave the European Union on January 31, 2020. Enumerate some of...
Shares and Bonds Valuation US-China Trade War has affected Unlucky firm recently. Unlucky firm has announced that next year's dividend will be $1 per share and is expected to decrease at a rate of 6% forever. Market price of stock has declined to $3.50 when this development was disclosed. Find out the expected return investors hope to get from investing in the stock based on constant dividend growth model and explain one disadvantage of using this model approach. Discuss 2...