Second test: culture and economic of Asia

Name: Juan Diego bello torres.

Teacher: Víctor Alejandro Godoy López

Topic choose by me: trade war between thee United states and china.

Main authors of the conflict between the United States and China: Government of Donald
Trump, Government of Xi Jinping, world trade organization and some brands of both parties
that are positioned in the global market.

Economic variables: the war and conflict between these two economic powers, left traces in
the financial and economic part in several parts, collateral and indirect damages as well as
direct, several countries that have great characteristics and strengths in their export and
commercialization of goods around of the world were quite affected by this huge trade war,
and even Chinese and American consumers were also drastically affected by this conflict,
because when Donald Trump decides to promote protectionist policies with respect to
products arriving from abroad (especially from China and some countries that did not have
trade agreements with the United States), was a response by the government of former
President Donald Trump, he wanted to have economic dominance and characterize the United
States as the main exporting power in the world, even surpassing the Union. European, then
decided to implement a At a fairly large tariff rate for those products that came from far away
China, the trade war between these nations also harmed large companies such as Google, for
example: when the owners and partners of the Huawei company took the drastic decision to
avoid enter the foreign market (which was also the United States), then Huawei was going to
move away from projects and jobs with Google, because these two companies wanted to
promote many digital tools, Huawei also threatened to leave the Playstore, which is the page
where we download the main applications of our mobile devices, in this context, the economic
causes that were deployed around the world were enormous, from the separation and the
breaking of several international contracts between recognized companies and also the
destruction of new projects and ventures between China and the United States.

Potential results: in my opinion I consider that this war only brought totally negative results,
because at first the United States was the one that started this commercial conflict, the Donald
Trump government wanted to banish China from the market and international trade, Donal
Trump was demanding withdrawing various parameters, such as illegal subsidies, on
production and possible manipulation of the yuan, it could also say that in the results that
were evidenced after this conflict, there were losses of capital for both parties, as in the
previous example, we were debating the case of Huawei, then it can be concluded that many
users of this company, left disappointed because the contract they had with Google would be
affected, then a large part of the population that followed Huawei and were loyal customers,
withdrew and switched to operational different or even other cell phone brands like iPhone,
Nokia, etc …

Personal analysis: in my personal opinion, I consider that this trade war affected almost
everyone, economic stability was not secure, nor could adequate commercial activity be
promoted, protectionist and tariff barriers only protect goods, services, businesses, Local
companies and industries in each country, but they do not promote the commercial
development of the market for goods and services at a global level, it seems absurd to me that
they had not found a good agreement to avoid this conflict that affected countries such as
Mexico, El Salvador, Guatemala and Other countries that had associations with China, that is,
some Asian countries that worked or possibly continued to be partners of the great world
power of Asia (China), we know and are aware that the first government that directly attacked
the other country was the United States. , and from my personal opinion, I think they were
wrong because when Donald Trump gave the order to introduce tariffs of 25% at s products
from China, it seems illogical and something that is not competitive, China also reacted the
same, proposing to put tariffs on all goods and products that arrived from the United States of
America, but the vast majority of countries were affected because currently , The United States
is the country with the largest number of imported goods and products and is also the largest
consumer in the world, and China is the country with the largest number of exports and is
obviously the most productive country in the world, by the way, when we buy and consume
many products that they sell in our countries, cities, neighborhoods, towns, etc … They always
have the label that specifies that the product was made in China, because the industries in
China are dedicated to generating more products and working hard every day to generate the
largest production in the world, then countries such as Canada, Mexico, Ireland and Taiwan,
were close to a great economic crisis due to this war or conflict. Ct that originated in 2018, a
very interesting fact, is that China and the United States represent 40% of the world economy,
so, if these two powers are in a bad moment, we will be able to show a great economic crisis in
a very near future, it is illogical to think that an economic crisis is approaching due to a
commercial conflict between these two powers, but the reality is different, another important
aspect is that many Chinese companies were going bankrupt economically and financially,
because China is the country most affected And it is the one that generates the most losses,
Chinese exports are the structure and economic stability in that country, now I also
understand why China proposed to the European Union, that later they generate an
agreement and an alliance to be able to generate pauses to the follies of Donald Trump, that
is, China and the Chinese government, were in a rather complicated situation and for this
reason they were desperate, because they could not export After the large number of
products they make daily, they had large inventories and a large accumulation of unsold
products, subsequently, Donald Trump continued to pressure the Chinese government so that
they can reach an agreement and avoid a future economic crisis around the world.

Last one, I Would like to tell you about the profile of colombia or our country, because is really
important for us and we need to know some important aspects regarding protectionist policies
and free trade in Colombia.

Well, I am going to explain You the profile of our country and its politics…

Colombia Profile:

Protectionism in Colombia is a basic measure that encourages the implementation of policies

that protect local goods and services, so protectionism prevents and prevents the importation
of foreign goods without a tax for export, this tax is known as a tariff, and we know that the
Colombian industries, companies, businesses and enterprises are a bit weak and do not have
economic stability compared to other Latin American industries, but in the period of economic
and commercial stability in Colombia, the president at that time, executed a negotiation with
the United States. Of North America, and this negotiation was about implementing a free trade
agreement, after the completion of thirteen rounds of negotiation. On February 27, 2006,
Colombia and the United States concluded a free trade agreement. On August 24, 2006,
Congress was notified of the intention to sign the agreement. The congress of Colombia
approved the free trade agreement with the United States in 2007, the main advantage of the
free trade agreement between Colombia and the United States is that it guarantees greater
access of the Colombian productive apparatus to the acquisition of capital goods,
fundamentally machinery and equipment imported from the United States due to the
immediate elimination of the vast majority of tariffs (between 5% and 20%). For this reason,
Colombia varies in its decisions regarding promoting trade and protecting goods and services
in the local market, but Colombia has also participated in trade agreements (without tariff
barriers) with other countries, has participated in the Andean community and It has negotiated
various commercial aspects with a Middle Eastern country, in this case we are talking about
Israel.

Personally, I Think that it is better to promote free trade and free trade between all countries,
because we will develop a better commercial activity and our exported products will have a
greater scope, in addition to the products imported by us, we pay for them. The same, that is,
the tariffs or taxes that are granted when importing a foreign product, always those who are
going to pay said tariff, are the consumers of that product, but we also think about the
different sectors of the country, the agricultural, agricultural and livestock sectors. Peasants
who sell local products and goods are very important for the stability of products and services
in the local market, so it is a very difficult decision.