A question from Yahoo! Answers:
Is the growth of Asian economies(China, India) a threat to the US?
I need to analyze the growth of US trade with China and India. Is growth of these and other Asian economies a threat to the US? I’d prefer to hear both sides(pros and cons), if that’s possible.
Depends on your energy outlook.
From the standpoint of conventional economics, the growth of China and India is not a threat, but an opportunity; to develop, China and India will require lots and lots of capital goods (from power plants to wide-body airliners), in which developed countries have a distinct comparative advantage.
At the same time, it is possible that continuing growth in China and India will put upward pressures on energy prices and increase emissions of greenhouse gases (even now, China’s carbon dioxide emissions are second only to those of the U.S., mostly because of China’s reliance on coal), so in this regard, growth in Asia can be a threat, but not just to the U.S., but rather to the survival of the human race. Indeed, it can be argued that the greatest threat to the survival of the human race actually comes from the U.S. and its unwillingness to do something about its greenhouse gas emissions…