group assighmnet i just need 400 words
This group assessment provides the opportunity to apply your research skills and insights on protectionism and the “specificity rule” to examine the effect of the USA-China trade war and government policy towards less inequality without tariffs. Apply your knowledge on trade protection and externalities to analyse the effect of the USA-China trade war on specific groups and identify government policies (both on trade and domestic) that can assist vulnerable groups to overcome the negative effects of globalisation and improve their lives. The unit learning outcome(s) assessed is/are: · LO1: Demonstrate conceptual and practical understanding of the diverse effects of free trade and trade protection · LO2: Analyse the effectiveness of government subsidies and protection in the context of environmental protection · LO3. Examine how markets of foreign investment and labour migration might be affected by trade protectionism · LO4. Apply international economics insights to examine the impact of free trade and trade protection on particular sections of the population Details The group presentation should pay attention to the flowing qualities & requirements: 1. The powerpoint slides should be limited, clear and relevant to the topic 2. The group and countries examined should be clearly identified 3. The presenters should engage with the audiences and all group members should take part in the presentation. 4. The presentation should make references to concepts and insights gained during the BEO3430 study. 5. Powerpoint slides and poster should be uploaded on VU Collaborate Dropbox the night by 4:00pm of the day of presentation. 6. The total project is worth 30% out of which the presentation is worth 20% and the poster is worth 10%. Instructions 1. Groups size between 5-6 students 2. Duration of presentation should be 8 minutes 3. No more than 8 PowerPoint slides can be used 4. Include contributions from all members of the group 5. A Poster should be presented (worth 10%) that summarises the key concepts and linkages with appropriate visual effects, colours & fonts. 6. A copy of the slides and the poster should be handed to the teacher Assessment Criteria · Content relevant to the topic · Organisation and clarity of argument · Delivery, engagement with audiences and time management · Supporting materials (Poster & a bibliography) · Teamwork See the Rubrics for more details: Poster Rubric Presentation Rubric Template ID: ponderingpeacock Size: 48x36 The specificity rule states that governments should ‘act as directly as possible on the source of distortions’ (Pugel 2019). Therefore, the US government must implement measures that are more targeted than tariffs and quotas, to lower inequality for Americans, including farmers, and achieve long-term benefits. Before other policies are considered, a bilateral trade agreement should be sought as it is the most efficient method towards improving economic equality. Although phase one of a new trade deal is in effect, further talks between the highest levels of government are necessary (Bown 2021; Dupont 2020). The focus should be improving China’s business environment by altering their policies on FDI, reducing their domestic subsidies, strengthening intellectual property protection and property rights, removing compulsory technology transfers, and improving overall transparency (Cyrill 2019; Zhou, Jiang & Kong 2020). This will increase US FDI into China, benefiting US firms through greater returns on investment, and China through increased consumption of US products and increased tax revenue (Bekkers & Schroeter 2020; Pugel 2019). If a deal is unsuccessful, the US has alternatives including: ● Subsidies for agricultural products, such as soybeans and sorghum, would continue counteracting China’s import tariffs, helping increase domestic production, and improve US trade balance (Faris 2021). This would minimise increases to consumer prices, compared to tariffs, however, subsidies still create deadweight losses and should be temporary while other policies are introduced. ● Multilateral trade agreements: Although not mutually exclusive with a bilateral agreement, the US would benefit from diversifying their trade relationships which may influence China to reform their current policies (Broadman 2018). One possibility is re-entering the Trans-Pacific Partnership (TPP), which would further liberalise trade with eleven countries, increasing market size for US producers, and acting as alternatives to investment and manufacturing in China (McBride, Chatzky & Siripurapu 2021). Furthermore, the US Department of Agriculture supports the TPP as it opens markets for ‘food and farm products’ which increases exports, improves terms of trade, and raises income for individuals (Karsting 2017). ● WTO: The US could pressure the WTO to take actions towards fairer trade including removing China’s ‘developing country’ classification (provides preferential treatment through import restrictions for certain industries), better enforcing intellectual property protection, removing domestic subsides, and increasing transparency (Dupont 2020; World Trade Organization n.d.; Broadman 2018). Similar to a bilateral trade agreement, the US would gain improved trade conditions and increased export opportunities. One downside is the worsened US-China relationship, however, without a bilateral agreement, correspondence may already be suffering and benefits of WTO actions likely outweigh the downsides. ● Exchange rate: A strong US dollar or weak Chinese yuan hurts US firms as exports to China are more expensive relative to domestic items (Makin 2019). The US could depreciate its currency by selling US dollars and purchasing foreign currency (Freund 2017). Additionally, the US could pressure the WTO and IMF to enforce fair valuation of the yuan, having been previously undervalued, thereby improving export competitiveness, but risking reduced international dominance of the USD and higher inflation (Yeung 2020; International Monetary Fund 2020). US-China Trade War and its Impact on the US Agricultural Industry BEO3430 International Economic Analysis Akshat Mohan Kasera, Tenglin Li, Howard Li, Amber Ring, Yuzhe Shi, Patrick Warburton, Wenxin Xu History of Trade Wars Trade wars are not a modern concept; in fact, in the 17th century, colonial powers fought with each other over the right to trade exclusively with foreign colonies. The British Empire also has a history of trade wars such as the Opium Wars with China during the 19th century. Not to forget the 1930s, when the United States passed the Smoot-Hawley Tariff Act, increasing tariffs to protect American farmers from European agricultural products. In reaction to this many countries struck back by placing higher tariffs of their own, leading to global trade declining, consequently the US entered the Great Depression (Investopedia 2021). What is a Trade War? A trade war occurs when one nation imposes higher tariffs or restrictions to imports from another nation. In response, the other nation strikes back, raising tariffs or restrictions of their own against that nation (Investopedia 2021). Trade wars are normally seen as a reaction of protectionism which happens when a government’s activities result in international trade restrictions. Protectionism generally occurs when governments need to protect domestic industries and jobs from foreign competition. Protectionism could also be used by governments to balance trade deficits. In the international trade context, a trade war could be harmful to the global economy as it affects businesses and consumers from both nations and the aftermath can be felt by other nations who are not directly involved in the trade war (Investopedia 2021). Basis of the US-China Trade War Since as far back as the 1980’s, Donald Trump has voiced his hostility towards Chinese trading practices and trade deficits. Moving forward to 2016 when campaigning for presidency, Trump voiced his discontent with numerous present trade agreements the US held (Semp 2021). Therefore, he reassured voters that he will be returning manufacturing jobs back to the US from countries where they have been outsourced; specifically referring to China and India. Moreover, he promised to reduce the large deficit the US has with China (Semp 2021). How did the Trade War Start? Once elected into office, Trump began his protectionist campaign with formal tariffs and attacks on Chinese imports based on grounds that China’s unfair trade practices have led the US into a massive deficit with China (Semp 2021). Inclusive of intellectual property theft, and artificial technology transfer, in addition to insufficient market opportunities and unequal playing field for Americans firms in China, attributed to the Chinese government offering subsidies to preferred Chinese firms (Semp 2021). Meanwhile, China’s international trade grew swiftly after its acceptance as part of WTO in 2001, followed by bilateral trade between the US and China which is estimated to be USD 559 billion by 2019. Nevertheless, that trade was off-balanced, with the US falling into a growing trade deficit with China, which grew from 103.1 billion in 2002 to to an estimated 375.6 billion by 2017. The deficit further increased to 419 billion in 2018, then decreasing to 345.6 billion in 2019, after the trade war had begun (Census 2021). Introduction July 6, 2018 The US imposed tariffs on US $34 billion worth of Chinese imports, which started the first shot in the US-China trade war. In response, China imposed a 25% tariff on 545 goods (estimated at $34 billion) imported from the United States, including a large number of agricultural products. August 23, 2018 The United States imposed tariffs on China's imports of US $16 billion. In response, China imposed a 25% tariff on US $16 billion worth of goods. September 24, 2018 The United States officially imposed a 10% tariff on US $200 billion of Chinese imports. At the same time, China imposed tariffs on $60 billion of US goods. December 1, 2018 The U.S. and Chinese governments agreed to stop tariff attacks on each other at the G20 summit in Argentina, and then Trump cut 25% tariffs on $200 billion worth of Chinese goods. May 10, 2019 The United States once again raised its tariff on US $200 billion of Chinese goods exported to the United States from 10% to 25%, and threatened to impose tariffs on the remaining US $300 billion of Chinese goods. China's Ministry of Commerce said it would have to impose tariffs on $60 billion worth of U.S. goods by June 1, 2019 (SCMP 2021). During this period, China and the United States conducted a total of 11 rounds of negotiations. The total amount of tariffs imposed by the United States on Chinese goods is US $550 billion, while the total amount of retaliatory tariffs imposed by China on American goods is US $185 billion (Wong & Koty 2020). Main Timeline American meat exporter: The outbreak of African swine fever has killed millions of pigs in China. US meat exporters had hoped to use the African swine fever outbreak to export more pork to China, but the 62% retaliatory tariff restricted US sales. The trade war prevented pork producers from seizing this historic sales opportunity (Gu & Daly 2019). Rural America: In 2019, more than 240 Midwestern farms have filed for bankruptcy protection, and more farms are struggling to repay their loans. American Government: Historically, U.S. agricultural trade has run a surplus to offset an increase in the U.S. trade deficit. But starting in