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Implications of US-China trade wars for Australia
Task
On 28 August, 2018 KPMG Australia published a report, Trade Wars: There are no winners, on economic modelling of the expected impact of the recent US-China trade disagreements.
The report estimated that should the trade war escalate to involve a significant number of other countries Australian national income could be cut by approximately half a trillion dollars over 10 years -the equivalent of 40 percent of 2017's total household disposable income. Around 60,000 jobs would be lost, and real wages pushed down by $16 per week for the average worker.
Your task is to:
1. Read the full report and some of the Australian media coverage of its contents (refer attachments). Summarise the key findings of the report. You may also search the internet for other commentary on on the report.
2. Since publication of the report what have been the subsequent developments in the US-China trade disagreements?
3. Discuss these developments in the context of the three scenarios modelled by KPMG in its report?
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