Trade war and its impact on global economy Group Discussion Topic for Airforce Phase2

Trade war and its impact on global economy:

Trade war is a situation where two or more countries try to destroy the trade between them by imposing restriction.

Trade war is an economic battle between countries where they levy additional taxes on each others products exports in order to protect their on Economy.

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

 

Trade war does have its own advantages and disadvantages as well. It promotes local job growth and  it will also increase demand for domestic goods and protect nations with un-ethical trade policies, on the other hand It increase costs and it will also slows down economic growth. It hurts diplomatic relations and cultural exchange between nations.

Due to trade war various Nations have moved towards protecting their economy to tackle the race of International Trade like in India various programs like make in India, startup India and Atmanirbhar Bharat are running by Indian government to enhance their local  business and to provide employment and uplift their economy as well. A study by IMF (International Monetary Fund) shows that recent USA- China trade war affect global economy very badly.  WTO (World Trade Organisation) should make their own norms to regulate global trade as it will mostly affect the developing countries.

Effects of trade war :

     Protect domestic companies

Increase local jobs

     Domestic products demand increases Reduced choices for customers 

     Increase cost induce inflation 

Slow economic growth 

      Hurt diplomatic relations

In conclusion, trade Wars between countries are said to be more harm than cure and it will bring failure in the economic activities, trade tensions, economic downfall and inflation.