Final answer:
The possible consequences of a trade war mentioned in the memo are trade barriers and an economic slowdown, which can result in higher consumer prices, retaliation from trading partners, and overall negative effects on the economy.
Step-by-step explanation:
According to the memo, the possible consequences of a trade war include trade barriers and economic slowdown. Protectionist measures like tariffs, quotas, and embargoes tend to create specific winners and losers: consumers face higher prices while domestic producers are sheltered. However, the overall effect of protectionism is negative for the country imposing restrictions, as it can lead to retaliation from other nations, harming different industries and causing a loss in economic efficiency.
Trade disputes, such as the trade war between the U.S. and China, can lead to harmful tariffs on exports which impact various sectors, from agriculture to manufacturing. Moreover, international agreements like the World Trade Organization aim to decrease protectionist measures and foster global trade by setting common rules. This reduction in trade barriers generally increases the availability of products and services, lowers costs, and can stimulate economic growth on a global scale if properly managed.