Question

China and U.S.A Trade war: What was the intent/goal of the truce or trade deal? Why...

  1. China and U.S.A Trade war: What was the intent/goal of the truce or trade deal? Why is it fragile? (to answer this, think of the gains from trade)

Homework Answers

Answer #1

The goal of the trade deal is to protect the super power status of United States and also the businesses of the United States in the anti dumping activities and also low-cost goods imports from China so that United States will be better off and its industries can be protected on the whole. it is so fragile because the gains from trade are huge where the specialisation levels in different goods of both the countries are very high so that at the same budget United States can get more amount of goods from China then to produce itself and vice versa

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