Trade War

Trade war

A trade war is an economic conflict often resulting from extreme protectionism, in which states raise or implement tariffs or other trade barriers against each other as part of their commercial policies, in response to similar measures imposed by the opposing party. If tariffs are the exclusive mechanism, then such conflicts are known as customs wars, toll wars, or tariff wars; as a reprisal, the latter state may also increase the tariffs. Trade war arises only if the competitive protection between states is of the same type and it is not valid in case of dumping exports. Increased protection causes both nations' output compositions to move towards their autarky position. Minor trade disagreements are often called trade disputes when the war metaphor is hyperbolic. Trade wars could be escalated to full conflict between states as evidenced in the Massacre of the Bandanese after alleged violations of a new treaty.

Data Source : Wikipedia

• Related Topics:  Balance Of Trade - Balance Of Trade Is The Difference Between The Monetary Value Of A Nation's Exports And Imports Of Goods Over A Certain Time Period. Sometimes, Trade In Services Is Also Included In The Balance Of Trade But The Official Imf Definition Only Considers Goods., Currency War - Currency War, Also Known As Competitive Devaluations, Is A Condition In International Affairs Where Countries Seek To Gain A Trade Advantage Over Other Countries By Causing The Exchange Rate Of Their Currency To Fall In Relation To Other Currencies., Economic Sanctions - Economic Sanctions Or Embargoes Are Commercial And Financial Penalties Applied By States Or Institutions Against States, Groups, Or Individuals. Economic Sanctions Are A Form Of Coercion That Attempts To Get An Actor To Change Its Behavior Through Disruption In Economic Exchange., Economic Warfare - Economic Warfare Or Economic War Is An Economic Strategy Used By Belligerent States With The Goal Of Weakening The Economy Of Other States. This Is Primarily Achieved By The Use Of Economic Blockades. Ravaging The Crops Of The Enemy Is A Classic Method, Used For Thousands Of Years., Trade Barrier - Trade Barriers Are Government-Induced Restrictions On International Trade. Most Trade Barriers Work On The Same Principle: The Imposition Of Some Sort Of Cost On Trade That Alters The Price Or Availability Of The Traded Products. Barriers Take The Form Of Tariffs And Non-Tariff Barriers To Trade., Water Conflict - Water Conflict Typically Refers To Violence Or Disputes Associated With Access To, Or Control Of, Water Resources, Or The Use Of Water Or Water Systems As Weapons Or Casualties Of Conflicts., Trade Wars, Economic Warfare, Metaphors Referring To War And Violence, Customs Duties