Business Law 3322315 Essay: International Trade and Protectionism

This essay delves into the fluctuating nature of international trade, examining the interplay of protectionism, great power rivalries, and global economic factors. The author discusses the impact of protectionist measures like tariffs and quotas, analyzing both their short-term benefits and long-term drawbacks. The essay highlights the influence of organizations like the WTO and the impact of geopolitical tensions, such as those between the US, China, and Russia, on trade dynamics. It also explores the effects of trade agreements like USMCA and their implications for countries like Canada. The essay concludes by assessing the potential for easing trade tensions and the prospects for trade growth in the current global landscape.

Running head: BUSINESS LAW
BUSINESS LAW
Name of Student
Name of University
Author Note

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In agreement with the facts mentioned in this document it can be said that nature of
international trade is fluctuating. According to reports of WTO rate of trade growth can be seen
to decrease by 0.4% in 2019 which, the economists think, would increse within 2020 (WTO,
2019). It is agreed that protectionism can be both positive and negative depending on the
situation. Protectionism can be beneficial in the short term as various tariffs on imports would
result in growth of the domestic economy. In further agreement it can be seen that in long-run it
would create a lack of international competition and higher debt of the country (explainity,
2017). In further agreement with the essay it can be stated that with detoriating relations with
China and US and with the problems in ratification of the USMCA with Mexico, Canada’s
economy would be facing serious trouble (The Globe And Mail, 2019).
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In agreement with the second essay it can be stated that protectionism and great power
rivalry has direct impact on international trade. In agreement with the statement that by
implementing subsidies, tariffs, quotas and product standards the government is giving the local
businesses control over domestic market. It is further agreed that protectionism often leads to
lack of competition in international market and increase in product prices (Institue, 2016). In
further agreement with the essay it can be stated that great power rivalry is a principal theme of
global politics affecting trade. It is agreed that problems between Russia and China with US
causes economic tension between countries and affecting trade (Institute, 2016). In conclusion it

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can be agreed that the expectation of fall of trade volume growth from 3.0% to 2.6% would
likely to ease trade tensions and Canada has potential to increase trade powers.

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Reference
explainity. (2017). Protectionism easily explained (explainity® explainer video). Retrieved from
https://www.youtube.com/watch?v=wFO8FDvLoms
Institute, C. F. (2019). CFI. Retrieved from
https://corporatefinanceinstitute.com/resources/knowledge/economics/protectionism/
The Globe And Mail (2019). A thorny road lies ahead for canadian-chinese relations. The
Globe and Mail. Retrieved from https://www.theglobeandmail.com/opinion/article-thorny-
road-lies-ahead-for-canadian-chinese-relations/
WTO. (2019). Global trade growth loses momentum as trade tensions persist. Retrieved from
https://www.wto.org/english/news_e/pres19_e/pr837_e.htm
Institute. (2019). CFI. Retrieved from
https://corporatefinanceinstitute.com/resources/knowledge/economics/protectionism/