Effects of Trade Wars on Real Estate. Finance Research Paper

Effects of Trade Wars on Real Estate
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Abstract
One of the challenges that the international community faces in contemporary society is instilling control on international trade and preventing the event of a trade war and its consequences, especially on 'standby' countries. Organizations like the World Trade Organization (WTO) have not been able to keep international trade in check as unfair competition is still the main approach of many countries to achieve global economic powers of scale. With an increasing number of companies engaging in real estate, it is imperative to focus on the impacts of trade wars on real estate. Different researches have been conducted in recent generations to understand how trade wars have affected the real estate industry. To address the research gap existing in this area, this research focuses on addressing the implications of trade wars on the real estate market. This research will focus on presenting different case studies including the United States, the U.K., China, and Canada. Further, the research will discuss how the real estate industry has evolved over the years, the challenges it has faced, and the approaches and policies that have been implemented to address the same. The findings of the paper show that trade wars can have both positive and negative influences on real estate depending on the targeted products and nations. The paper draws from different trade wars in history and their effect on the countries involved but mostly covers the most recent trade war between China and the US.[The WTO is responsible for controlling the international trade through policy-making, negotiation and dispute resolution]
Introduction
International trade claims numerous supremacy battles between nations in the effort to provide an attractive business environment for their products and put barriers to another’s. Chen (2019) defines trade war as the result of countries retaliating against each other by raising the tariffs and other restrictions like quotas on opposing countries. It is the tedious process of talking, bargaining and retaliating between countries aimed at gaining economic advantage for their traded goods (Kwa-Zulu Natal Provincial Treasury, 2018). A trade war begins at the point a country protects her domestic industry by restricting the imports of another; an exercise that harbors the potential to benefit domestic producers and job opportunities but can slow economic growth and trade between all the involved countries in the long run (Khan, 2019). Trade wars have the power to affect the market flow of both products and human resources which can adversely affect the respective industries and even the larger economy of the country.
Chen (2019) defined real estate as a property that comprises land, buildings and natural resources like plants, animals, and minerals. Real estate forms a significant element of a county's economy and a recession in the industry can result in dire effects on the overall economy of the country. Productivity and growth in the real estate industry of a country depend on the availability of raw material like stone and steel as well as human resources like builders and buyers and /or renters. Just as the industry affects ...