ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Trade war
|
|
|
Misallocation of resources
|
|
|
A threat to national security
|
|
|
None of the above
|
Detailed explanation-1: -Trump imposed the trade fees in 2018 to shrink the mammoth U.S. trade deficit with China and to compel the Chinese to abandon several unfair trade practices, including coercing American companies into sharing their technology secrets.
Detailed explanation-2: -On March 22, 2018, Trump signed a memorandum under the Section 301 of the Trade Act of 1974, instructing the United States Trade Representative (USTR) to apply tariffs of $50 billion on Chinese goods. Trump said the tariffs would be imposed due to Chinese theft of U.S intellectual property.
Detailed explanation-3: -Examples for very high tariffs in China are cars and other luxury products. It is generally distinguished between three main tax/tariff categories: a value-added tax (VAT), a consumption tax and general custom duties. High taxes on imports are the most obvious way to restrict the influx of goods.
Detailed explanation-4: -ANSWER 1: Most students will probably agree that Donald Trump’s views on trade appear to be most closely aligned with mercantilism and the philosophy that it is in a country’s best interests to export more than it imports.