IB- Case 6

Answer the following questions:

1

Reflect on the notion of a technology decoupling between the United States and China. What are the potential implications of such a separation for companies? Consider the implications for global trade patterns of Trump’s message to European companies that they either choose to do business with China or with the United States. How could this change the nature of U.S. trade policy?

2

Using the theories of absolute and comparative advantage, discuss the current standoff between the United States and China. What are the two countries trying to achieve? How do their objectives fit with what the two trade theories suggest?

3

Reflect on Trump’s position that all technology from China should be viewed as being suspect. In your opinion, is the United States being reckless with its allegations that Huawei and TikTok are being used by Beijing for espionage? Could the administration’s position ultimately result in the creation of new competition for U.S. companies?