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Question: Fears of a trade war heightened in March 2018 as the Trump administration slapped trade sanctions on China, including restrictions on investment and tariffs on $60bn worth of products. Fears of a trade war between the two biggest economies in the world were also reflected in the bond market, with US 10-year treasury bonds posting their biggest one-day drop in yields since September. Further, bank and tech stocks also fell.
a. What are the various trade barriers that companies can resort to under such situations?
b. What is the impact of such trade barriers on global trade in general and international financial markets in particular?
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