IB Economics HL Extended Essay (A)

Introduction

After rapid economic growth in 2017, the global economy had reached a peak and is now entering into a recession. The recession (negative economic growth occurring over two or more quarters) began when the United States of America argued about their trade deficit and requested trading nations for renegotiations. The trade renegotiation dealt a heavy blow to global trade, and the most significant was to China, which led to the outbreak of the trade war between the G2. Due to the trade war global industrial production, world trade and new manufacturing order has decreased from May 20181.

Trade protectionism revolves around the protection of domestic companies and strengthening local economy. However it would be interesting to find out if there is any impact on Korea’s economic growth by investigating: “What Repercussion has the Trade War between China and U.S.A had on Korea’s exports?” Trade wars happen when a country raises barriers to trade and countries on the receiving end of those barriers retaliate. Usually when trade wars happen they damage both consumers and producers for both countries. However, in a rare case like the one above, if two big countries were to have a trade war, the surrounding countries would also have a huge economic impact.