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Book Analysis Final 1

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Book Analysis/ Review: Trade Wars Are Class Wars By Klein And Pettis
Student’s First Name, Middle Initial (s), Last Name
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Book Analysis/ Review: Trade Wars Are Class Wars By Klein And Pettis
Question 1: How are Trade Wars Impacting Capital Projects?
Financial sectors and global trade are sectors that interconnect almost everyone in the
world. Although these connections bring about a myriad of benefits, they also have a negative
side; the transmission of problems from one society to another. Oftentimes, countries find
themselves in conflicts with one another due to what they interpret as a conflict of interests,
especially on the trade front. However, Mathew Klein and Michael Pettis, in their book Trade
Wars are Class Wars: How Rising Inequality Distorts the Global Economy and Threatens
International Peace bring about a different perspective. They opine that the global conflict
between economic lasses is what is being misinterpreted by most as conflicts between
nations. When inequality within a country rises so much that there is a considerable gap
between the affluent and the poor, this translates to heightened trade conflicts between
countries. Depriving the poor of the power to purchase by opportunists and chauvinists is
what leads them to believe that their interests are at odds with those of people in other
countries (Klein & Pettis, 2020). A good example is a dispute that has erupted between the
U.S and the Chinese governments. When these trade wars erupt and escalate, capital projects
of the countries that are involved are adversely affected, and this is due to several reasons.
What Are Trade Wars?
In the common sense of it, trade wars usually commence when one country perceives
or believes another competitor country is enabling or encouraging unfair trade practices.
When this happens, Industry lobbyists and domestic trade unions begin pressuring the
government and politicians to promote local goods while making imported goods less
attractive to consumers, thus effectively commencing a trade war (Ossa, 2014). Trade wars

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occur inevitably as a result of globalization, with each country seeking to protect its interests,
sometimes at the expense of others. The trade war between the United States and China is a
model of what trade wars entail, especially in the Trump administration, which fostered open
hostility to the Chinese trade. Trump placed excessively punitive tariffs on imports from
China, terming Chinese trade practices as manipulative, and at the same time, he blocked
Chinese investments in companies in the U.S. However, Klein and Pettis take a diversion
from this standard view of trade wars. They assert that while trade wars present themselves as
conflicts between two countries over trade interests, they are not. According to these authors,
trade wars are conflicts between financial assets owners and bankers on the one hand and
ordinary people and households on the other -the conflict between the ultra-rich and
everybody else. This inequality produces a loss of jobs, indebtedness, and an abundance of
manufactured goods that are not being consumed (Klein & Pettis, 2020). Trade wars are not
just limited to the one in the U.S. and China, but it is a global issue. In essence, people who
share common interests are being pitted against each other because the ultra-rich are waging a
class war against people not as affluent as they are and being successful in doing so.
Trade wars as a phenomenon have been observed to stifle foreign spending on or
investment in capital projects by corporations. In the given context, Trade wars only
contribute to preventing international capital from being spent where it is needed most and on
capital projects that are most useful. It is worth noting that in the recent past, hostility toward
the liberalization of trade and economic globalization has amplified. The opposers contend
that the globalization of capital markets and trade liberalization has produced losers and
winners, with the U.S. largely seen as the loser. According to this argument, the labor force is
involved in a zero-sum competition for work, with laborers in countries with a trade deficit
like the U.S. losing jobs to countries with a trade surplus such as China. In response, the
two countries have engaged in a trade war that involves imposing tariffs on each other’s

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1 Book Analysis/ Review: Trade Wars Are Class Wars By Klein And Pettis Student’s First Name, Middle Initial (s), Last Name Institutional Affiliation Course Code and Title Instructor’s Name Assignment’s Due Date 2 Book Analysis/ Review: Trade Wars Are Class Wars By Klein And Pettis Question 1: How are Trade Wars Impacting Capital Projects? Financial sectors and global trade are sectors that interconnect almost everyone in the world. Although these connections bring about a myriad of benefits, they also have a negative side; the transmission of problems from one society to another. Oftentimes, countries find themselves in conflicts with one another due to what they interpret as a conflict of interests, especially on the trade front. However, Mathew Klein and Michael Pettis, in their book Trade Wars are Class Wars: How Rising Inequality Distorts the Global Economy and Threatens International Peace bring about a different perspective. They opine that the global conflict between economic lasses is what is being misinterpreted by most as conflicts between nations. When inequality within a country rises so much that there is a considerable gap between the affluent and the poor, this translates to heightened trade conflicts between countries. Depriving the poor of the power to purchase by opportunists and chauvinists is what leads them to believe that their interests are at odds with those of people in other countries (Klein & Pettis, 2020). A good example is a dispute th ...
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