Question and Answers Assignment

Question and Answers

Question 1

A trade war with China would not be wise because it could lead to a decrease in exports and an increase in imports, which would have a negative effect on the US economy. It could also lead to the Chinese government imposing tariffs on US goods, which would make them more expensive for consumers and hurt American businesses (Liu, Margaritis, & Zhang, 2019). Furthermore, a trade war could lead to a deterioration of relations between the US and China, which could negatively affect the global economy.

Arguments for a trade war with China include the fact that China has been engaging in unfair trade practices, such as intellectual property theft, forced technology transfers, and currency manipulation (Liu, Margaritis, & Zhang, 2019). These practices have put American companies at a disadvantage and cost American jobs. As a result, a trade war could pressure the Chinese government to change its policies and level the playing field for American businesses.

Arguments against a trade war with China include that it would be costly for American consumers and businesses and could lead to a decline in global trade. Moreover, whether a trade war would effectively change Chinese policies is unclear. For example, the Chinese government could respond to US tariffs by imposing its tariffs, and it might be difficult for the US to get other countries to support its trade policy (Liu, Margaritis, & Zhang, 2019).

Question 2

The United States currently has a trade embargo in place against Venezuela. The embargo prohibits the export of goods, services, and technology to Venezuela (Mijares, 2021). The embargo also bans US citizens from investing in Venezuelan companies. The goal of the embargo is to pressure the Venezuelan government to change its policies and restore democracy to the country.

The trade embargo has had some success in weakening the Venezuelan economy. However, it has also had negative consequences, such as increasing poverty and hunger in Venezuela. Moreover, the embargo has not succeeded in restoring democracy to Venezuela. The US government has said that it is willing to lift the embargo if the Venezuelan government agrees to hold free and fair elections (Mijares, 2021). However, it is unclear whether the Venezuelan government is willing to make this concession.

The current trade policy toward Venezuela is not good for democracy. The embargo has not restored democracy to Venezuela and has instead caused hardship for the Venezuelan people. The US government should lift the embargo and pursue other methods of promoting democracy in Venezuela.

Question 3

The United States should follow up its military action in Iran with an economic approach. The goal of the economic approach should be to pressure the Iranian government to change its policies and stop supporting terrorist organizations (Alaaldin, 2021).

One way to pursue this goal would be to impose sanctions on Iran. Sanctions could target the Iranian oil industry, banking sector, and other key parts of the economy. The goal of sanctions would be to weaken the Iranian economy and make it difficult for the government to support terrorist organizations.

Another way to pressure the Iranian government would be to provide economic assistance to countries affected by Iran’s support for terrorism (Alaaldin, 2021). This assistance could include financial aid, security assistance, and other forms of support. This assistance would make it harder for Iran to support terrorist organizations and pressure the Iranian government to change its policies.

The United States should also pursue a diplomatic approach toward Iran. The goal of diplomacy should be to resolve the underlying issues that lead to Iran’s support for terrorism (Alaaldin, 2021). This might entail collaboration with other countries to find a solution to the Syrian conflict, resolve Iran’s difficulties, and foster better US-Iranian ties.

References

Alaaldin, R. (2021, February 26). Biden’s decision to strike Iran’s proxies is a good start. Retrieved from Brookings: https://www.brookings.edu/blog/register-from-chaos/2021/02/26/bidens-decision-to-strike-irans-proxies-is-a-good-start/

Liu, M. H., Margaritis, D., & Zhang, Y. (2019). The global financial crisis and the export-led economic growth in China. The Chinese Economy, 52(3), 232-248.

Mijares, V. M. (2021). The Foreign Policy Assertiveness of the Latin American Petro-State: Venezuela’s Enduring Patterns. Problems and Alternatives in the Modern Americas, 262-284.