European Conference On Language And Social Sciences
Global Trade (currency) Wars
Disiplin:
Economic Growth
The mechanism of the work of the international exchange markets has been constantly discussed from the past to the present day.The proper understanding of the functioning of the international currency mechanism is important in terms of providing commercial and economic advantages to companies and even individuals.The globalization movement that emerged after glasnost and perestroyka has changed the nature of trade throughout the world.Beyond globalization, the entry into force of the World Trade Organization agreement that enables free trade has also changed the nature of the rules of trade in the world.During this period, countries with cheap labor and cheap raw materials advantages, including mainly China, have achieved very serious advantages in trade.In addition to the advantages of cheap labour and raw materials costs, a significant competitive advantage is the low rate policy.A large portion of the countries that make trade disadvantages (Japan, the United States, Europe, etc.)by vd)They could only apply low currency policies to profits in the trade battles they were losing.Because it is almost impossible in practice that developing countries compete with low labour costs or raw materials costs.But the low interest and low currency currency policies that Japan and the United States insisted and failed in the beginning ended with failures to be certain by subscribing almost all their defenders.The low-cost low-cost policy has not shown a long-term sustainable improvement while providing short-term relief: low-cost and low-cost policies reduce the pain (problem) for a period of time, such as the short-term effects of the pain-cutting, but in the long-term the pain, the problems continue.Low local currency policy (currency wars) is not the right strategy in winning trade wars.That’s why, first of all, the 2017 Brexit vote in Britain, the US election results and finally the French election results showed that the citizens of the country concerned want serious changes in economic matters as well as political matters: they don’t want the implemented low-percentage low-percentage policy, they want more protective policies.In this context, we can easily predict that in the near future the rules of world trade, i.e. the economy, will change again (in the direction of protection).Countries, companies and their managers, who want to gain a sufficient share of world trade, must know the mechanism of exchange-trade wars in order to analyze the rules properly and make the best possible decisions within the new conditions that will form.
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