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The U.S.-China Trade War And Global Economic Dominance

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U.S. President Donald Trump speaks to reporters after a phone conversation with Mexico’s President Enrique Pena Nieto on trade in the Oval Office of the White House in Washington, DC on August 27, 2018. President Trump said Monday the U.S. had reached a “really good deal” with Mexico and talks with Canada would begin shortly on a new regional free trade pact. (Photo: Mandel Ngan/AFP/Getty Images)

Why is U.S. President Donald Trump willing to negotiate and compromise with Mexico and the EU on trade, and not China? The answer, in short, is that Trump’s dispute with China is more than just America’s trade deficit. It is a head-to-head struggle between an incumbent superpower and a rising challenger, fueled by a deep conviction among the White House’s economic policy team that America’s problem with China is not just the trade deficit, but China’s very economic structure itself, which disadvantages foreigners not only in trade, but also in investing and operating in China, and distorting business competition in favor of Chinese companies.

In Trump’s crosshairs is the Made in China 2025 initiative, announced in 2015 aiming to upgrade comprehensively within a decade China’s industrial production, especially in manufacturing, to be among the best in the world. It is therefore being seen increasingly in the U.S. as a direct challenge to its global economic dominance. In fact, the Council on Foreign Relations, a U.S. policy think tank, stated in 2018 that “[Made in China 2025] is a real existential threat to U.S. technological leadership.”

China is indeed snapping at the heels of the U.S. in closing the technology gap. According to the UNIDO Competitive Industrial Performance Database, the share of exports that can be considered medium/high tech in 2016 is 63% for the U.S. and 58% for China. This is getting uncomfortably close for the U.S. China clearly has come a long way from the days of exporting low-tech, labor-intensive exports like garments and shoes.

Consequently, Trump’s trade war with China is really about blocking, or at least slowing down, China’s technology upgrade and its expanding global economic influence. Chinese investment in the tech sector in the U.S. has come under tougher scrutiny, and American government agencies are put on high alert against Chinese efforts in industrial espionage. The clause of protecting national security in the U.S. Trade Act of 1974 is increasingly invoked to impose new tariffs on Chinese imports and to curtail China’s business mergers and acquisitions in the U.S.

However, the tactics with which the Trump trade war is being fought to block China’s technological advances will fail. Trump and his economic advisers are stuck in the old paradigm of industrial production where trade and industry secrets are recorded in design blue prints, instructions and protocols that are locked up in a safe. In today’s modern economic production, the more complicated and high value-added the task, the more important is tacit knowledge, or knowhow, which resides only in people’s brains, especially in knowledge and capital intensive industries like banking and finance, biotechnology, aerospace, nanotechnology and artificial intelligence.

Knowhow is everything that we need to know but find hard to explain. Skiing is a knowhow. We learn how to ski by skiing with good skiers, not by studying the physics of skiing. The only way to acquire knowhow is to have the opportunity of working alongside people who already have such knowhow. In this connection, as Trump’s trade war makes it increasingly difficult for American businesses to export to China, they will need to move more of their operations to China to produce locally in order to sell their goods and services in one of the fastest growing consumer markets in the world. And that means more American brains with high grade technical and management knowhow will be spending more time in China, offering more opportunities for their Chinese colleagues and employees to work alongside them to acquire their knowhow.

In 2017, the value of products that American companies made and sold in China was estimated at $250 billion, about double that of U.S. exports to China, according to the IMF Direction of Trade Statistics  This is a consumer market that is growing at 14% a year, about four times faster than the U.S. In the next few years, it is set to bypass the U.S. to become the world’s largest consumer market. This is not a market that global companies can ignore. If the only way to sell more in this market is to move more production there because of Trump’s trade war, that’s what global companies will do. And that in turn means creating a great deal more opportunities for China to acquire valuable American knowhow that is critical to upgrading China’s technology, helping Made in China 2025 to succeed.

The only way for President Trump to stop China from acquiring American technological knowhow is to bar all Americans traveling to and working in China. This is not going to happen. His trade war is making it more necessary for more American brains with the knowhow that China needs to spend time in China. We are conditioned to think only that leadership is critical for countries to rise and succeed. The fact of the matter is that leadership is equally important for countries to fail and decline. President Trump will be seen in history as a pivotal leader that seriously undermined America in its struggle against China for global economic dominance.

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Education

Essay Writing: All You Need To Know

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The first step to write an excellent essay is to plan, understand the question, research and gather relevant information and come up with a skeleton plan. You should also have in mind about the word limit you intend to write. In this article, you will learn on the guidelines for writing essays and the common mistakes you need to avoid.

Structuring Essay

To make an excellent essay, you need to write it in a natural manner where all your sentences flow logically. Besides, you will also need signposts that will guide the audience. For an essay to be complete, it has the following format:

  1. Introduction
  2. Body
  3. Conclusion
  4. References
  1. Introduction

The role of this introduction is to ensure you introduce the subject. Here, you will explain the way you understand your question and therefore describe the way you plan to deal with it.

You can start where you define essential terms, provide a brief history, personal context when appropriate and the significance of the subject. You should avoid lengthy introduction because it will limit the available number of words for the assignment.

The best introductions are short and brief. They should be one or two paragraphs that are brief to the point. You will find some people starting with a provisional introduction and then rewrite after completing their first essay draft. So that you can write a tentative selection, you will ask yourself whether your audience wants to know so you can follow the subsequent discussion.

  1. Body

An excellent essay will generally be a blend with researched evidence and comment. Some essays require a catalog of factual sources or summaries of other people’s viewpoints, philosophies, attitudes, and thoughts.

Besides, other people will express only their personal opinions and therefore lacking or little evidence. They might also take essay examples from other writer and support their views. The essential thing to do is to balance between your analysis and other researchers on the subject. It is, therefore, necessary if you back up your points from your experience and findings from other writers and researchers.

When you are writing other peoples researches, you will need to cite them. What is important is that you will need to illustrate or quote the material by providing evidence to the points you make and depends on the essay type.

Avoid using quotations to substitute your words. For a quote, let it be an explanation using your words and show the significance to the argument. When citing another author’s test, ensure you indicate your evidence in the reference. When done, provide a full list of your references at the end.

Conclusion

When you complete an essay, you need to write a short conclusion. The conclusion should sum up your argument or comparison of your viewpoints. You should what you accomplish or learned and also mention the questions that you have left open. You should not summarize your argument entirely.

References

In a different page, you will need to include a list of references or bibliography. When you don’t reference correctly, then you will get the accusation of plagiarism. When you indicate another author’s text, then you will need to show where you get your evidence in a reference. Besides, even other documents that you read so that you can contrast your argument, ensure you reference them too.

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Health

The Affordable Care Act Led To Gains All Across The Healthcare Industry

Medicare Advantage brought insurers millions of taxpayer-subsidized customers.

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The earnings and stock prices of healthcare companies have soared since former President Obama signed the Affordable Care Act into law in 2010.

Despite gloomy predictions, the Affordable Care act boosted the healthcare industry. Take Medicaid and ACA marketplace insurers, for example, Centene’s stock price has multiplied by 12 times or 1,100%. Shares of UnitedHealth Group have also increased by more than 700%.

Medicare Advantage brought insurers millions of taxpayer-subsidized customers.

While they struggle with a 2.3 percent tax put in place in 2013, the medical device industry created more jobs.

Thanks to ACA, executives in healthcare took home average yearly earnings of $20 million since 2010. Their compensation included salary, bonuses, stock, perks, and retirement funds.

In addition, ACA has spurred massive innovation in healthcare with the help of startups and retail giants like Apple and Samsung, that launched breakthrough therapies, digital devices, and apps, revolutionizing healthcare trends.

Eight years later, ACA’s efficiency is still being validated by health leaders and lawmakers who recently fought back Trump administration’s attacks on the health law. In August this year, four cities sued the administration after it announced new short-term healthcare plans to roll back restrictions of ACA.

Read more about the top healthcare startups in the industry here!

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Business

Tips To Make The Best Use Of A Personal Loan For Chartered Accountants

Chartered accountants provide vital support to streamline the financial management of a firm.

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Chartered accountants provide vital support to streamline the financial management of a firm. They are the essential cogs in the wheel of every business or enterprise to plan, streamline and execute targets right from the monetary basics.

As a CA, you are a strong mediator for balanced financial administration and supervision to ensure a sound financial future. Availing a personal loan for chartered accountants has to be a pre-planned step with financial positives. But instead of a typical business audit, these loans are supposed to be for your personal life.

As per ICAI, there are more than 2.5 Lakh CAs in India. With the current average remuneration for CAs around 7 LPA, you are already among the highest salary medians by profession. Higher income slabs directly translate into a better FOR, but not necessarily a better CIBIL score. The latter has more to do with proper repayment of loans with sound financial management, an obvious expectation from a CA like you.

Either way, here are some tips to make the best use of a personal loan for chartered accountants: –

  • A vacation –

There’s a whole world beyond your home, your workspace and whatever is in between. Get out and have a look. Take a month-long trip to Europe or the Caribbean. Get a taste of a life outside your 24×7 schedule. Don’t think about the expenses. Let your personal CA loan cover it for you.

Personal loans are unsecured. So, you do not need to put your personal assets as collateral to go for your dream vacation. Most importantly, these loans are easy to avail with minimal documentation requirements, simple approval procedures and quick disbursals. This means you can plan your vacation alongside the on-going loan procedures and find on-time funds for hotel or plane ticket bookings.

  • For your child –

You want your child to get the best educational exposure you can provide. But the top schools or colleges can be quite a financial setback without proper planning. A personal loan for chartered accountants can end up as education funds for your child.

One of the top benefits of these personal loans is that you can use the funds at your discretion; that is, you can utilize the credit however and wherever you want to use. Lending institutions provide loans up to Rs. 35 Lakh for CAs, enough for education abroad and perhaps a vacation for the two of you!

  • Refinancing –

Refinancing can be tricky only for those who don’t know their way through it. Loans are financial investments for a better future. Refinancing is the best way to consolidate the overall debt and reorganize accordingly. If you have more than one credit, you can take a personal loan for CAs and use it as your refinancing option.

You can make the best of competitive CA loan interest rates and consolidate the previous credits by repaying them with this one. You must understand that these are professional loans, in this case, for chartered accountants. You can get a better overall EMI, i.e. pay a lower percentage of interest, by refinancing your existing debts under one professional loan.

  • Home renovation –

You may think about general home loans but what you need instead is a loan tailored for you, as per your profession and the subsequent financial pattern. There are a couple of things CAs should consider before buying a new home. Furthermore, you will find it hard to come across a loan for home renovations in the first place.

So, stick to your personal loan for chartered accountants. These loans are fine-tuned with your financial requirements as per the loan value, EMIs, features, etc. Moreover, NBFCs such as Bajaj Finserv provide with pre-approved offers on personal loans for CAs. These are also valid on personal loans, business loans, home loans, loans against property and other financial products and services. The offers are as per your individual eligibility pointers which make the process of approval and disbursal faster.

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