Changing World Trade Patterns, Tariffs and Their Cost

International Marketing

MKTG 732-003

Individual Assignment

Changing World Trade patterns, Tariffs and their cost

After reading the given article, I found these two articles which are similar to this on the basis world trade, tariffs and the potential of a world 'trade war.'

Trade War Update: U.S. Goes for China's Jugular: "Since Trump reported his intend to force taxes on numerous Chinese merchandise, numerous Hong Kong and terrain makers are genuinely considering setting up a reinforcement generation line in Malaysia or Vietnam to get ready for the most exceedingly awful."

A patriot’s guide to shopping during a Canada-U.S. trade war: In light of the broadening exchange war amongst Canada and the United States—and Donald Trump's broadsides against this current nation's political administration—we've aggregated a rundown of items you can bolster to the detriment of their American partners. At times, you'll be increase weight in key U.S. political voting demographics by previous items on Canada's tax list.

The United States government impacting the political dimension of domestic organizations within the United States. This is demonstrated by the presidents discussed protectionist policy to introduce higher tariffs on Chinese imports to protect domestic organizations from foreign competition.

The article also highlights a positive effect from the discussed potential protectionist policy and its impact on domestic organizations within the United States, with an increase in domestic business and public sentiment as reflected by the positive result to the local financial markets.

Additionally, another highlighted example of the president’s protectionism agenda and its impact to domestic organizations through their political dimension, is the presidents promise to revive domestic growth through public investment and a reduction in international spending, resulting in a 5 per cent rise to the Dow Jones Industrial Average.

The topic relates to the article:

• Global economy;
• Globalization; and
• World Trade Organization.

The introduction of higher tariffs on Chinese imports threatens organizations within the United States and in particular their level of globalization and participation in the global economy. Globalization, which Schermerhorn et al. defines as the worldwide interdependence of resource flows, product markets and business competition.

The threat to globalization and the global economy could materialize through retaliatory action from both the Chinese and the United States, which experts believe could result in a ‘global recession’. The potential of a global recession created by a United States and Chinese trade war is a key example of a negative effect protectionist policies can have on the global economy through the introduction of trade and foreign investment restrictions. The global economy can be defined as a marketplace in which resources, markets and competition are worldwide in scope.