Internal Assessment Microeconomics

IB
The link to this article is: https://www.nytimes.com/2019/04/11/us/politics/us-china-trade-
deal.html?rref=collection%2Ftimestopic%2FInternational%20Trade%20and%20World%20Market
&action=click&contentCollection=timestopics&region=stream&module=stream_unit&version=late
st&contentPlacement=1&pgtype=collection

In this article is about the United States pushing to allow tariffs on Chinese goods so if the if China
not do their promises, without allow that China have their answers. Until today the Chinese headers
have shown that by their acts may took their future in the hands of the Americans, so they need to
get an agreement.

The article states that for a global growth in the economy just a 3.3% down from the previous
estimates of 3.5% in January and in October will be a 3.7%. It wills continue the tensions between
both countries and as well it will be influenced on financial conditions.

Well the United States in considering a financial down because of the promises of China especially
Beijing that some trades that they must follow to agreed won’t be able to do it. So, for that answer
Donald Trump will introduces some tariffs to the goods from China letting the economy from them
in America get low on demand. So, the trade is not too clear because of the law of demand and what
they need to do in a certain way as the article mention the United States doesn’t know jet what they
need to punish until they get to an agreement.

International trade refers to the movement of goods and services through different countries and
their markets. It is done using foreign currency and is subject to additional regulations established
by the participants in the exchange and the governments of their countries of origin. When carrying
out international commercial operations, the countries involved benefit from each other by better
positioning their products and entering foreign markets. The regulation of international trade is
carried out through traditional mechanisms such as tariff barriers, quotas on imports and exports
or, of course, bilateral or multilateral agreements. Likewise, the balance of payments informs of the
accounting of the foreign transactions of a country, while the Incoterms are universal rules that
regulate the conditions and terms of the international transport of goods.

So that’s why the United after been pushing to get on a agreements they will impose some tariffs
so China will suffer some consequences unless that they mention in the article that they will
regularly make meetings at some levels of the government to try to resolve the differences that
they had.

Trying to resolve the problems in different perspective I think that it will be better that the United
states had a good deal with Beijing beside imposing the $250 billion imposed last year because China
wont lead to an agreement with those terms they need to get a balanced in economy so they won’t
have a collapse.