President Trump's trade war and the world economy and politics
Professor of international departments of Wayo Women's University, Kageaki Yamashita
In the current globalization age where goods and money moves freely throughout the world, the effects of fiscal policy and monetary policy independently undertaken by each country are getting smaller. The same is true for the country's unique trade policy. In addition, many of the modern social problems are issues in which politics and economy are closely related.
1. President Trump's War of Trade
In the trade war that President Trump launched, on the blog yesterday 25 I stated that it is not as effective as expected in modern times where goods and money move freely, globalization has advanced. It is important to note that when export of emerging economies becomes difficult due to trade wars by import restrictions, emerging economies will not be able to earn dollars and will not be able to repay foreign debts in line with the depreciation of the currency. Such circumstances are similar not only in Turkey but also in China.
It should be noted that if the currency depreciation goes too far and the currency collapses or the repayment of foreign debts is delayed, there is a risk of currency crisis and financial crisis. And President Trump should recognize that such economic crisis will have a serious impact on the American economy. (However, the progression of a mild currency depreciation has the positive effect that exports become advantageous and foreign tourists increase in tourism countries like Turkey)
2. North Korea issues and China
China already has the problem that domestic companies and local governments can not repay their debts. Furthermore, in such a world situation, not only is it difficult to repay debts from foreign countries but the problem of not returning the dollar China lent under the concept of The Belt and Road Initiative is starting to arise.
In addition to the situation where China's excessive hegemony is beginning to be criticized by other countries as being new colonialism, the problem that the Chinese economy is likely to worsen more and more by the trade war that Trump started was added .
Expanding principle of Xi Jinping chairman of China has aroused opposition from the United States as well as neighboring countries. It is reported that some elders in China questioned his responsibilities.
Then, Xi Jinping Hu, as a way to avoid a trade war with the United States, have showed the attitude to help North Korea. This is one reason why North Korea does not give way to the United States in terms of denuclearization.
That denuclearization is ineffective unless the United States and China cooperate in the North Korean problem is what I pointed out many times in the past Tweet. Xi Jinping president that is struggling in the trade war with the United States by showing intentionally attitude to help North Korea wants to deal with the United States.
If America wants to cooperate with China on the issue of North Korea, he will argue
that Trump should retract trade war with China.
By the end of the trade war, President Trump should bring the global economic crisis and the North Korean problem at the same time to avoid and solve it.
#Trump # Trade war # Turkey # China # North Korea
Professor of international departments of Wayo Women's University, Kageaki Yamashita
In the current globalization age where goods and money moves freely throughout the world, the effects of fiscal policy and monetary policy independently undertaken by each country are getting smaller. The same is true for the country's unique trade policy. In addition, many of the modern social problems are issues in which politics and economy are closely related.
1. President Trump's War of Trade
In the trade war that President Trump launched, on the blog yesterday 25 I stated that it is not as effective as expected in modern times where goods and money move freely, globalization has advanced. It is important to note that when export of emerging economies becomes difficult due to trade wars by import restrictions, emerging economies will not be able to earn dollars and will not be able to repay foreign debts in line with the depreciation of the currency. Such circumstances are similar not only in Turkey but also in China.
It should be noted that if the currency depreciation goes too far and the currency collapses or the repayment of foreign debts is delayed, there is a risk of currency crisis and financial crisis. And President Trump should recognize that such economic crisis will have a serious impact on the American economy. (However, the progression of a mild currency depreciation has the positive effect that exports become advantageous and foreign tourists increase in tourism countries like Turkey)
2. North Korea issues and China
China already has the problem that domestic companies and local governments can not repay their debts. Furthermore, in such a world situation, not only is it difficult to repay debts from foreign countries but the problem of not returning the dollar China lent under the concept of The Belt and Road Initiative is starting to arise.
In addition to the situation where China's excessive hegemony is beginning to be criticized by other countries as being new colonialism, the problem that the Chinese economy is likely to worsen more and more by the trade war that Trump started was added .
Expanding principle of Xi Jinping chairman of China has aroused opposition from the United States as well as neighboring countries. It is reported that some elders in China questioned his responsibilities.
Then, Xi Jinping Hu, as a way to avoid a trade war with the United States, have showed the attitude to help North Korea. This is one reason why North Korea does not give way to the United States in terms of denuclearization.
That denuclearization is ineffective unless the United States and China cooperate in the North Korean problem is what I pointed out many times in the past Tweet. Xi Jinping president that is struggling in the trade war with the United States by showing intentionally attitude to help North Korea wants to deal with the United States.
If America wants to cooperate with China on the issue of North Korea, he will argue
that Trump should retract trade war with China.
By the end of the trade war, President Trump should bring the global economic crisis and the North Korean problem at the same time to avoid and solve it.
#Trump # Trade war # Turkey # China # North Korea
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