Question

USA and China tried to harm each other by restricting trade. They imposed heavy taxes on goods bought from each other. USA even banned certain goods from China. Due to this, both the countries suffered economically.

Suggest what should be done to stop this trade war.

• A. The World Trade Organisation should interfere and handle the differences related to trade, as both USA and China are its members.
• B. The United Nations should interfere and try to bring peace by resolving the differences as both USA and China are its members.
• C. BRICS should help China strengthen its armed force as China is a member.
• D. USA and China should strengthen their armed forces and prepare for war.

Answer 1

The correct option is A The World Trade Organisation should interfere and handle the differences related to trade, as both USA and China are its members.

When countries have trade wars, they try to harm each other by restricting their trade. That is why, there is the World Trade Organisation or WTO that handles the differences related to trades and provides a platform for negotiations in international trade for member countries like China and USA.