China-U.S. Trade Dispute Has Broad Implications

In response to complaints form United Steelworkers, Friday evening President Obama announced that the United States would levy tariffs of up to 35% on tires from China. China’s commerce ministry criticized these actions on Saturday and on Sunday, declared they would impose tariffs on American exports of automotive products and chicken meat. This qualm could lead to growing trading tensions between the United States and China.

China – US trade dispute

The past few days there has been a trade dispute between China and the U.S., specifically about the importing and exporting of chicken meat and cars. This issue began when U.S. president Obama chose to levy tariffs on thirty five percent on tires being shipped from China. On the other side, China announced they would do the same, placing tariffs on our exports of chicken meat and car and automotive products.

PIMCO says recession will deepen without more fiscal stimulus by nations

PIMCO, the manager of the world’s largest bond fund, says that due to the recession we will have another round of problems in the future making the economic recession worse that it currently is.

Unplugged: Once the epitome of Japan’s post-war success, its electronics firms are in crisis

Electronic companies in Japan are struggling due to the world’s economic recession. Companies that were booming in recent years and now having major problems. One of the main problems are that these electronic companies have their hands in too many markets. This strategy used to work in the economic boom because things were cheaper.

Protectionism is certain to engulf the global economy

The article I found written by David Cox of the First Post, states the United States economic issues and how no matter what we do in order to solve the problem, it won’t change the end result. It talks about how the thoughts or protectionism and relying on ones own country alone will maybe help that sole country’s economy but still bring the world’s economy down.

Second Thoughts on Free Trade

Written for the New York Times, Charles Schumer and Paul Craig Roberts shared their combined opinion on Ricardo’s theory on comparative advantage. They proposed the question of “Is the case for free trade made two centuries ago undermined by the changes now evident in the modern global economy?”

Tariffs and competitive advantage

This article discusses the trade issues between the European Union and China; more specifically, Germany, France, and Italy and their trade relations to China. Currently there is a disagreement on whether or not to impose corrective or disciplinary tariffs on cheap Chinese imports to the European Union.

The effort of New Zeland wool farmers to expand their selling market

Much of European economic philosophy from the 16th – 18th centuries realized that, to increase wealth, a country should encourage the sale of exports. In line with this concept is Adam Smith’s theory of absolute advantage. In the article, “Luxury rug deal to benefit Romney wool producers,” Maria Slade of the New Zealand Herald reports on a recent agreement made between wool producers and rug sellers.