Trade War Explained (US and China).

                                               TRADE  WAR EXPLAINED

    Nowdays  we are watching that everywhere  news about the Trade War between US and China.Going to explain you about what it is.

1.What is Trade War?
-Trade war means some restrictions on Goods which is come from another country.
Have you heard about globalization?Yes,it explains on it in a defination form.United states restricted on China goods.Lets take a example:-US sales a Pen on 10$ but China exports Same quality of pen at 8$.So, people will buy chinese products.So US president Trump takes a step for decrease the demand of chinese product.They improve the export duty so chinese product(pen) cost goes up to 11$.Now everyone will move on product which is manufactured by US.


2.Trade Deficit:-Trade Deficit means Exports of goods is less then Import.Lets take a example,India is importing 5000/- goods and exporting 4000/- goods so there is 1000/- Deficit seen which is known as Trade Deficit.

3.Impact of US and China Trade war on India:-If the Trade war between them will be short periods then there will no benefit for indian economy but if it will go for a long period then it may be good for indian economy.You will know think what is the logic about no impact on India of good impact on India. See,China know about the War there government also took some political steps on it.They are not Exporting some nessesary goods to US,loke Soya.
Many farmers of US become bank rup due to this war.So US is worried about that in this case two thinks can be happens that US will stop this War,So due to stoping this War Chinese economy will again grow up fastly or the second is that if the War will go for along period of time then They will may be import many goods from India which will grow indian economy and this Trade war will Give a good advantage for india to become a good powerful country.
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So you can se in the above image that China is No.2 .