Information AboutTrade War |
| CATEGORIES ABOUT TRADE WAR | |
| international trade | |
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Economists generally believe trade wars are very non-productive and decrease the economic welfare and total Social Surplus of all nations involved. However, political scientists may see the ''threat'' of a trade war as helpful in winning a concession of some sort from the other side. Some economists would agree that some economic protections are more costly than others because they may be more likely to trigger a trade war. For example, if a country were to raise tariffs, then a second country in retaliation would similarly raise tariffs. But increasing, for example, Subsidies , is difficult to retaliate against by a foreign country. Many poor countries, for example, do not have the ability to raise subsidies. In addition, poor countries are more vulnerable than rich countries in trade wars; in raising protections against Dumping of cheap products, it risks making the product too expensive for its people to afford. A series of articles by Henry C.K. Liu under the heading '' The Coming Trade War '' provides an analysis on current problems in global trade. SEE ALSO |
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