Essay on International Relations

·       “The strongest of all warriors are these two - Time and Patience.”

Hi Friends, Today i would like to share about global Trade war, how it would arisen and other problems will be discussed in the essay friends.

War means a conflict between two societies, countries etc.. Now a days it turn to mortality, destruction and financial. Recently we heard about economic conflict between U.S. and China. It is nothing but a Trade War.

A trade war means when a nation imposes tariffs  on imports and foreign countries retaliate with similar forms of trade protectionism and a huge impact on international trade market. It starts when a nation attempts to protect a domestic industry and create jobs. In the short time, it may work. But in the long run, a trade war costs jobs and depresses economic growth for all countries involved. It also triggers inflation when tariffs increase the prices of imported goods.

A global trade war is turn to an economic conflict resulting from extreme protectionism in which states raise or create tariffs or other trade barriers against each other in response to trade barriers created by the other party. It is increasingly turning from talk to reality as U.S. President Donald Trump's government prepares to impose tariff on china. It is signalling, the start of a trade war between the world's two largest economies. The Imposition of Tariff's had little impact on Asian Markets. Prepare well, Thank u friends.

Essay on Global Trade War:

Almost all wars, perhaps all are trade war connected with some material interest. They are always disguised as scared wars made in the name of god or civilization or progress. But all of them or almost all of the wars have been trade wars.

Trade wars usually start, when a country tries to protect a specific domestic industry by enacting custom duties or other kinds of taxes on competing foreign goods. Countries, whose industries were affected, sometimes react with enacting some kind of duties on goods importer from the country, which had originally enacted protectionist duties. This can easily escalate into tit for tat duty enactment and in very short time the trade between the countries can drop to a minimal level, hurting various industries in both countries and also related industries in other countries, which can then get involved in the trade war.

To Illustrate:- USA wants to protect domestic furniture manufacturers, so it enacts a customs duty on furniture from Mexico. So Mexican furniture exports dropped by 80%. Mexican furniture manufacturers have been buying wood from Canada and now Canadian companies are adversely affected. Because Canadian industry was damaged by U.S. tarrifs or quotas, Canada now enacts tarrifs on the USA, USA retaliates, and now a number of industries in three countries are affected, their suppliers might come from yet other countries who might join the trade war.

Once this trade war escalates, it is very difficult to stop, and it takes a long time to reverse them all. It can adversely affect economies of many countries for a very long time. Thus, The trade war could strain the global economy. India is obviously one of those countries with higher exposure to commodities, especially oil imports.

We are pretty bearish (on the rupee) at this moment, given all the circumstances combined. Not only high oil prices but also the trade war that has been taking off. So, although India has a large internal market, still chances are high that Indian recovery will last, the external pressure is really building at the moment. This is not good for the Indian currency.

The Impacts of the on-going trade war between U.S. and the Rest of the world regarding tariff on steel and aluminium can have both positives and negative effects on India. As levy hits china’s imports, India can potentially fill the demands of china as well as other countries and thereby expanding its exports.In case of soya-bean, one of the key items in the list, can cause a great impact on openings for India to enter other markets.

Whereas Higher tariffs lead to higher consumer prices, caused by importers passing on their increased costs of raw materials, which could lead to higher interest rates causing problems in the economy. Hence, the Indian economy will need to brace for significant alterations and stress from combined effects of global and domestic challenges.

In general, Trade war will not ultimately produce winners. Tariffs tend to increase consumer prices, raise the costs of companies that use imported materials in manufacturing, and detract from economic growth. Indeed, The current outbreak of confrontation may drag down the rest of the world.

Besides, USA is a mature democracy. Hence, it is a duty of  President Trump to respond to the apprehensions rising against the choices he made. Therefore, he should show his leadership skills and come forward to build the trust with people all over world as said by India's First Female Prime Minister "You Can Not Shake Hands With A Clinched Fist".

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