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What is trade friction?

Updated: 12/14/2022
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12y ago

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Trade friction is the process through which jobs move from one country to another, the friction comes from the international tension as people lose jobs.

For example, Japan created trade friction with the United States by exporting cars, reducing sales by U.S. based car companies which in turn caused plants to shut down and jobs to be lost.

Similarly reverse trade friction occurs when an exporting nation begins to feel the effects of trade friction from another nation.

A good example of reverse trade friction is the movement of textile manufacturing from Japan to China.

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