The anti-immigration policy adopted by the USA government

Running head: GAME THEORY
Game Theory
Name of the Student
Name of the University
Author Note

GAME THEORY
1
Table of Contents
Answer to 1......................................................................................................................................2
Answer to 2......................................................................................................................................3
Reference list...................................................................................................................................6

GAME THEORY
2
Answer 1
Data suggests that the economic power has been started shifting from the developed
countries of the USA and Europe to the developing countries of China, Brazil and India since the
last decade. The overwhelming presence of the multilateralism and dynamism are considered as
the causes of this change in the international economic power. During 2000, China’s economy
was around one eighth of the USA economy. However, the situation has been started changing
since the early of 2010. China has exhibited a dramatic change owing to improvement in the
exogenous economic factors including foreign direct investment, dumping price and devaluation
of the exchange rate. On this account, China’s growth is expected to surpass the growth of the
USA economy by 2030. The anti-immigration policy adopted by the USA government can cut
down the employability of the country (Athukorala 2017). Moreover, the increasing tariff rate
further discourages the foreign traders to trade with the USA exporters. This will bring
regressive impact on the earnings of the USA economy. In response, the USA economy will lose
its international market size. As per the researchers, the Chinese economy might be advanced by
50% more than the USA economy. China has been successful to continue its strong position in
the international economy due to steady reliance on the capital investment and exports. This has
resulted in the improvement in the domestic consumption level and contraction in the import
demand.
Answer 2
It has been observed that the USA and China have initiated the trade war more than a
year ago. Over the last year several goods have been imposed by high tariff rate. This has caused
a loss of billions of dollars (Berthou et al. 2018). The unfair trade practice including the dumping
polices and adoption of fixed exchange rate of China is considered as the source of its explosive