• ISSN: 2010-023X
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing: Engineering & Technology Digital Library, ProQuest, Crossref, Electronic Journals Library , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2011 Vol.2(5): 419-423 ISSN: 2010-023X
DOI: 10.7763/IJTEF.2011.V2.142

Politics vs. Market; Implication of the Present Trade Row on US –Sino Relations and Global Balance of Power

Rashad Yazdanifard and Nnamdi Ogbodoakum.
Abstract—Trade disputes and potential broader conflicts between Washington and Beijing need to be averted due to high risk potentials it poses to the global economy. US leadership, influence and other capabilities largely depends on her strong economy. U.S competitive advantages in key industries are almost nonexistent now, as economic re balancing continues to take its toll on the overall economy; jobs that nurtured the most cherished ideal in modern history (AMERICAN DREAM) are in their droves to emerging countries with comparative advantages. Both the short to medium and long -term implications of a weakened American will be felt in its global Leadership, regional security, diplomacy and development. (Aims) the paper will explore the connection between China’s currency value and US trade deficit with particular emphasis on the rise of protectionism against free market principle. The relationship between economic growth and power will be explained in other to understand the implication of rising China on Asian pacific and on emerging new global order. (Methods) we have reviewed available literatures on the subject matter in other to support the above objectives and the Results showed that, China’s currency appreciation without adequate structural reforms in the US will have less than expected impact on the huge trade deficit; Protectionism will continue to gain momentum against free market as competitions intensify among the major economic players in protecting their prized assets. Moreover, rising China with its economic prowess could tilt the balance of power and possibly challenge American global Leadership and influence. Both the short to medium and long -term implications of a weakened American will be felt in its global Leadership, regional security, diplomacy and development.

Index Terms—International Relations, Protectionism, Rising China, U.S Trade deficit

Rashad Yazdanifard is with the Faculty of Management, Multimedia University, Cyberjaya, Malaysia. (rashadyazdanifard@yahoo.com).
Nnamdi Ogbodoakum is with the Center of Post Graduate Studies, LimkokwingUniversity of Creative Technology, Cyberjaya, Malaysia (nnamdiogbodoakum@yahoo.com).

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Cite:Rashad Yazdanifard and Nnamdi Ogbodoakum., "Politics vs. Market; Implication of the Present Trade Row on US –Sino Relations and Global Balance of Power," International Journal of Trade, Economics and Finance vol.2, no.5, pp. 419-423, 2011.

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