ASSIGNMENT - Economics Homework Help

Running head: ECONOMICS ASSIGNMENT
ECONOMICS ASSIGNMENT
Name of the Student
Name of the University
Author Note

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ECONOMICS ASSIGNMENT
Table of Contents
1. Introduction.........................................................................................................................2
2. To explore the spillover effects for Singapore....................................................................2
3. To highlight the serious concerns of the Singapore’s economy if there is an escalation
trade tension...............................................................................................................................4
4. How the Singapore government should be responded the current situations?.......................6
5. Conclusion..........................................................................................................................8
6. Referencing.........................................................................................................................9

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ECONOMICS ASSIGNMENT
1. Introduction
1.1. What is trade tension?
The term Trade tension can be explained as the discrepancies which has happened at
the time of trade between the two countries. There are several causes through which the trade
tension can arise, some of the cause can be the growing complexity and the number of trade
organizations.
1.2. What are the reasons behind the US-China trade tension?
There are several reasons in which the trade tension is being arise between the United
States and China. At the time of trading, China has used some unfair means, so the President
of United States was not eager to trade with Chine anymore. On the other hand, China thinks
that due to the rise of the power in their economy, Unites States is not interested in trading
with them anymore.
2. To explore the spillover effects for Singapore
2.1. Maritime and Shipping
One of the largest port which is being enjoyed in the region of the Asia-Pacific is by
Singapore. The major portion of the that region is being enjoyed by Singapore mainly
because of the Strait of Malacca. With the help of Strait of Malacca, they have achieved the
level of success in the maritime industry (Rugman and Verbeke 2017). There are many areas
in which the Singapore has succeeded, they are ship financing, bunkering, forward freight
agreement trading, port terminal operations, marine insurance, ship brokering, maritime
lawsuit jurisdiction and offshore building (Carleton and Hsiang 2016). In performing all these
activities, there are 1,70,000 who are employed here and has made more than 5,000

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ECONOMICS ASSIGNMENT
achievements and as per the reports their revenue has contributed more than 7 per cent of the
GDP.
With a growth in the economy, China is expanding the market in the market of marine
insurance. Due to this expansion there are various achievements which they have achieved,
one of them is becoming the second one to have the largest market in the cargo insurance
sector and further they have regained the position and achieve the top position in that market
segment (Zhang, Fung and Changhong 2017). China has done major investments in the sector
of the maritime insurance, because of the economy of the Singapore has facing a tough
competition. China is doing this investment so that they can achieve the level at which
Singapore is at right now, with the terminal efficiency and the ability of the post
transshipment. In the area of the currency exchange, China does get help from Singapore as it
can convert the American Dollars easily at the time of payment.
2.2. Manufacturing or electric sectors
The economy of Singapore has affected badly due to the trade war between the China
and United States, most of the products that are manufactured in China is banned as per the
order of President of United States. The sales of many products is decreasing day by day and
because of these that manufacturers are forced to stop the production as there is almost no
demand both in the economy and also for exporting (Stubbs 2017). There are several
subsidiary organizations in Singapore who use to supply goods to the Chinese market, is also
suffering a huge loss as the Chinese products are banned in several markets. There were
imposing of tariffs on most of the Chinese products which were done by the Government of
United Sates, due to all these reasons both the economy of Singapore and China is facing
imbalances and is running through a period of recession (Li, He and Lin 2018). One of the
major issue that has been faced by the tech giant Huawei is that the smartphones which they