The Assignment Trade War with China

The objective of this assignment is to use the tools from the class to analyze a current events topic. You should look at the included articles and use the information from the articles in your answers. You should NOT summarize the articles since the assignment does not ask you what the articles states and summarizing the articles will be severely penalized. You should not use any outside references and there will be no grading advantage to using outside references (the objective of the assignment is to apply concepts, not to do a literature review).

The format for the assignment should be written paragraphs with full sentences organized into a memorandum-style document. This will allow you to focus on the content of your answers and to not focus on writing an introduction, conclusion, linking sentences etc. While part of your grade will be based on writing style, this is mostly to eliminate sloppiness in writing. With the exception of the few passages that are necessary to make a substantial point, you should avoid using quotations of the articles. While using quotations avoids charges of plagiarism, it also reveals that you were not able to put the information into your own words.

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The assignment should be 5 pages maximum (double-spaced with 12 point type and 1 inch margins).

The Assignment Trade War with China

Please look at the following articles (links are also on our web page:

NPR, What Trump’s Tariffs have cost the U.S. Economy, October 11, 2019

Quctrung Bui and Karl Russell, “How Much will the Trade War Cost You by the End of the Year?” NYT, September 1, 2019.

Taheripour and Tyner, “Impacts of Possible Chinese 25 % Tariff on U.S. Soybeans and Other Agricultural Products,” Choices, 2nd Quarter 2018, Volume 33, Number 2

Your paper should include the following sections:

1. (15 points) Applying ideas from the course to the topic

1a. Please use concepts from our class (not from the articles) to explain the likely effect, including the overall effect, on the United States of the United States imposing tariffs on consumer goods from China. Please show the effects that you describe on a graph.

1b. Please use concepts from our class (not from the articles) to explain the likely effect, including the overall effect, on the United States of China imposing tariffs on agricultural goods from the United States. Please show the effects that you describe on a graph that is different that the graph from part 1a.

2. (15 points) Please use information from the articles to organize an explanation of how large the effects that you describe in part 1) are estimated to be. You should have one explanation for goods that the US exports to China and one explanation for goods that China imports from the US. In your explanation, specify how the numbers you are citing are related to the graphs that you drew in parts 1a and 1b. Note that the numbers in the articles may not correspond exactly to the concepts that you discussed in part 1. That is okay, just state how they are related.

3. (10 points) Summarize what you consider to be the total effects of the trade war on the United States. This should be a section that stands by itself and does not refer to part 1 or part 2.

4. (5 points) Based on your discussion in parts 1), 2), and 3), please explain why the Trump Administration engaged in a tariff war with China. You answer should include at least one rationale for the tariffs that has increased U.S. well-being as a goal.

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