How President Trump’s Approach to Economic Policy Impacts Foreign Economies

This article discusses the impact of President Trump's economic policy on foreign economies, specifically focusing on the UK, EU, and China. It explores the potential effects of trade policies, tariffs, and stock market fluctuations. The analysis highlights the possible consequences of Trump's proposals and their implications for global trade.

Running head: BUSINESS ENVIRONMENT
Global Business Environment
June 7
2019

BUSINESS ENVIRONMENT 1
Table of Contents
Task (b) - Describe and explain how President Trump’s approach to economic policy impacts
upon foreign economies such as the UK or EU or China..........................................................2
Introduction................................................................................................................................3
How President Trump’s approach to economic policy impacts upon foreign economies
such as the UK or EU or China..............................................................................................3
Possible impacts of the Proposal resented by Trump.........................................................4
Label China as the Currency Manipulator.........................................................................4
Bring Trade Cases..............................................................................................................4
Apply Tariffs to goods of China........................................................................................4
Policy Impact on Stocks.....................................................................................................5
Conclusion..................................................................................................................................5
References..................................................................................................................................6
Task (c) - Discuss and interpret how emerging economies are presenting opportunities for
global expansion for businesses using examples to illustrate your work...................................7
Introduction................................................................................................................................8
How emerging economies are presenting opportunities for global expansion for
businesses?.............................................................................................................................8
Conclusion................................................................................................................................10
References................................................................................................................................11

BUSINESS ENVIRONMENT 2
Task (b) - Describe and explain how President Trump’s approach to economic policy
impacts upon foreign economies such as the UK or EU or China

BUSINESS ENVIRONMENT 3
Introduction
The government economic policy is a kind of the a system that is framed for setting taxation
levels, budgets of the government, rates of interest, the supply of money and the labor
market, national ownership and different zones of the government interventions in the
economy. Major factors of the economic policy could be distributed into either fiscal policy
or monetary policy (Merlo, 2018). The intent of this paper is to discuss how the approach of
Trump to economic policy influences foreign economies.
How President Trump’s approach to economic policy impacts upon foreign economies
such as the UK or EU or China
The commitment of Trump to enhancing the economy of the U.S is majorly dependent on
basically altering the way in which the country's government operate the business. Trump's
specified standards from the range of rearrangement of the United States debt abroad to
renegotiation of the agreements of trade have shocked the entire financial community (Forex
Capital Markets, 2019b). As noticed by the financial market of the world, immediate after the
results of elections, the possible influence of the policies of Trump towards worldwide
commerce is majorly arguable (Lehman, 2016).
During 2016 pledge presidential campaign, Donald Trump represented a number of proposals
that will majorly influence the country's trade relation with China. It is comprised of labeling
the country that is China as the currency exploiter by imposing the taxes and tariffs, United
States withdrawal from the partnership of Trans-pacific, inculcating the trade representative
of U.S. to highlight cases of trade against of China, in the United States and at WTO in order
to encounter the China’s suspected biased subsidies to its industry and impose tariffs on the
products of China reliable with the trade act 1974 Section 201 and Section 301 and Trade
Expansion 1962 Section 232 (Forex Capital Markets, 2019a).

BUSINESS ENVIRONMENT 4
Possible impacts of the Proposal resented by Trump
There is a number of speculation make regarding the conceivable influence of the proposed
action against trade with China of Trump; however, they are yet not clear whether they will
be executed as planned.
China as the Currency Manipulator
Donald Trump has announced that he will inculcate the U.S. Treasury to formally label China
the manipulator of the currency such that the United State can take disciplinary actions. The
United State treasury in the past has utilized this tool, against Taiwan and Japan in the 1980s,
and in fact against China too in the 1990s (Forex Capital Markets, 2019a).
Trade Cases
In addition to other countries, the United States has raised number of barriers for the trade
policies of China. These barriers or challenges will be raised to the country's farm support on
the grains, and duties of export on the raw materials that are initiated by China for making
cheaper manufacturing in the country than abroad (Franck, 2019).
Apply Tariffs to goods of China
The advisers of Trump during the campaign suspected that in addition to manipulating its
currency and offering illegal subsidies of export, China also involved in these following:
 Involved in huge theft of the intellectual property in order to evade the cost of
research and development
 Fails to apply standards related to the safety of the water and environmental
regulations to cut costs
Meanwhile, China has been noticed to respond to the possible moves of the United States by
reducing imports from different manufacturers like GM, Boeing, Ford, and Apple. However,
the researchers have identified that China's export Trade with the United States is comprised

BUSINESS ENVIRONMENT 5
of around 18% and 4.5% of the country’s GDP, whereas trade of United States with China is
comprised of 7% of the exports, which is equal to 1% of country’s GDP (Forex Capital
Markets, 2019a). From this, it could be said that the economy of China will be majorly
influenced by the change in the policy.
Policy Impact on Stocks
The execution of the restrictions on the trade against China announced by the president will
have a major influence on the stocks of the business. These can include companies of US in
China are General Electric, Nike, Apple, Tesla, etc. In the same way, the companies of China
that are established in the US are Alibaba, Baidu Inc., JD.com, and Netease, etc. (Lee, 2018)
Conclusion
The above report has discussed the possible impact of the economic policies of Donald
Trump on foreign countries like China. The analysis highlights that Trump has announced
different proposals against China in his presidential campaign such as labeling China a
currency manipulator, raining tariffs and taxes over goods exported by China in the U.S, etc.
These will have huge influence on the China’s economic position because a huge part of the
economy of China is based on the U.S exports. In addition to this, the businesses that are
operating in both the country will also be impacted after the implementation of the policies.

BUSINESS ENVIRONMENT 6
References
Forex Capital Markets (2019a) How Will Donald Trump’s Policies Affect Trade With China?
[online]. Available from https://www.fxcm.com/uk/insights/how-trumps-policies-affect-
trade-china/ [accessed 7 June 2019]
Forex Capital Markets (2019b) How Will President Trump’s Policies Affect Trade And
Economics? [online]. Available from https://www.fxcm.com/uk/insights/how-will-president-
trumps-policies-affect-trade-and-economics/ [accessed 7 June 2019]
Franck, T. (2019) WORST CASE SCENARIO: Here’s what it looks like if Trump starts a
trade war with China [online]. Available from https://www.cnbc.com/2019/05/07/worst-case-
scenario-if-trump-starts-a-trade-war-with-china.html [accessed 7 June 2019]
Lee, A. (2018) China data shows economic growth slowing as impact of trade war with US
intensifies [online]. Available from
https://www.scmp.com/economy/china-economy/article/2174541/china-data-shows-
economic-growth-slowing-impact-trade-war-us [accessed 7 June 2019]
Lehman, J.P. (2016) The Trump effect on China [online]. Available from
https://www.imd.org/research-knowledge/articles/the-trump-effect-on-china/ [accessed 7
June 2019]
Merlo, A. (2018) Political Economy and Policy Analysis 1st ed. U.S: Routledge.

BUSINESS ENVIRONMENT 7
Task (c) - Discuss and interpret how emerging economies are presenting opportunities
for global expansion for businesses using examples to illustrate your work.

BUSINESS ENVIRONMENT 8
Introduction
An emerging market economy is said to be in which the nation is becoming the developed
country and is resolute by a number of socio-economic aspects. This type of market is said to
be the economy of the country that is developing toward being advanced (Arouri, Boubaker
and Nguyen, 2013). The intent of this report is to discuss regarding how emerging economies
offer opportunities to the companies for global expansion.
How emerging economies are presenting opportunities for global expansion for
businesses?
Emerging markets are generally considered to have the potential to make higher returns in
comparison to the developed markets; however, these markers also raise a number of risks.
Emerging economies possess structural advantages such as modernizing economies and
increasing population which reflects that they are prospective to have higher growth of the
economy and hence provide possibly better returns (Fin 24, 2017).
Around 60% of the economic growth of the world in the coming next decade will be due to
the emerging economies, highlighting the equivalent of US$15.5 Trillion. Out of 71 emerging
markets across the world, 18 markets have been considered as the global benchmarks for
outperformance (Export Development Canada, 2018). Indonesia and South Korea have
always been on the locator. According to the founder of Sekar Group Harry Susilo,
“Indonesia possesses substantial advantages in consideration to cost of labor. The country has
a population of around 250 million, which makes it the fourth largest populated nation. It
covers around 70% of the population which makes it the most favored market by business
people across the globe. Indonesia is also anticipated to be the seventh largest economy
across the world. Kazakhstan and India have also joined the ranks of the fastest growing
marketing in the world. India for its part, it majorly investing in developing new

BUSINESS ENVIRONMENT 9
infrastructure in order to develop to more than 9% in the coming 12 months (Export
Development Canada, 2018).
Some other top emerging markets in terms of the region are Latin America and the
Caribbean: Chile, Asia: India, Europe: Hungary, and the Middle East: UAE (Export
Development Canada, 2018).
According to Madgavkar, there is a number of things that have allowed these nations to
develop at a fast rate:
 Effective utilization of the labor force and the capability of identifying ways to utilize
available workers (Gaeta, 2012)
 Investing and saving high at the domestic level
 Effective use of management practices and the implementation of advanced and
innovative technology (Uddin and Tsamenyi, 2010)
 The development of institutions, government and private entities that are responsible
to work in order to support the competition.
 Expanding business in the emerging market (Export Development Canada, 2018)
Understanding the priorities, expectations, and culture of the customers in the nation is one of
the key requirements while expanding business in the emerging markets. Businesses could
grow by taking advantage of these opportunities present in the market; but, they must be
careful while proceeding. Because these markets have unpredictable political, cultural, and
financial and climate risk (Velocity Global, 2019).
Sometimes the major challenged for businesses expanding in the emerging economy properly
understands the local culture, expectations, and market. For instance, when Gillette was
planning to expand its business in India, it observed that 500 million men make use of T-

BUSINESS ENVIRONMENT 10
razors (Velocity Global, 2019). The cost of these razors is very low for the customers but was
likely to cause nicks and cuts on the men’s faces. After identifying this, Gillette planned to
design a low-cost razor in order to resolve this issue due to T-razors. In the year 2002,
Gillette designed Vector razor, which was created to protect faces of men. This product was
designed with a sliding bar in order to clear the razor from rough hair. Gillette then tested the
razor on some Indian student who lived in Boston and they appreciated the product. Though,
when the Gillette Victor introduced in India it failed. The cause being sliding bar can only
work on the running water and many of the Indians are not accessed with the indoor
plumbing.
The company learned from its faults, and asked its managers to observe different men in
India for around 3,000 hours, and know about their habits of shaving (Velocity Global, 2019).
By doing so, Gillette identified that men in India have diverse priorities of shaving in
comparison to western men. In the Western region, men desire to have a close shave, while
men in India just desire to have shaving without any cuts on their faces. Then the designers
invented razor with the name Guard which could be inexpensive and used without running
water. Soon, this razor became the fastest developing product in the market of India for the
Proctor and Gamble the parent company of Gillette (Velocity Global, 2019).
Conclusion
The above report has discussed how emerging economies offer growth opportunities to
businesses. From the analysis, it has been identified that emerging economies are effective in
using labor force and has competencies to use the available workers. In addition to this, they
have a habit of investing and saving high at the domestic level. Besides this, the population in
the emerging market is increasing which offer increased opportunities to the business to grow
in the emerging market.

BUSINESS ENVIRONMENT 11
References
Arouri, M.E.H., Boubaker, S., and Nguyen, D.K. (2013) Emerging Markets and the Global
Economy: A Handbook 1st ed. U.S: Academic Press.
Export Development Canada (2018) The outperformers: Opportunities to grow sales in
emerging markets [online]. Available from https://www.edc.ca/en/article/grow-sales-in-
emerging-markets.html [accessed 7 June 2019]
Fin 24 (2017) Emerging markets offer opportunities [online]. Available from
https://www.fin24.com/Finweek/Investment/emerging-markets-offer-opportunities-20171205
[accessed 7 June 2019]
Gaeta, G. (2012) Opportunities in Emerging Markets: Investing in the Economies of
Tomorrow 1st ed. U.K: John Wiley & Sons.
Uddin, S., and Tsamenyi, M. (2010) Research in Accounting in Emerging Economies 1st ed.
U.K: Emerald Group Publishing.
Velocity Global (2019) Taking Advantage of Emerging Market Opportunities [online].
Available from https://velocityglobal.com/blog/taking-advantage-of-emerging-market-
opportunities/ [accessed 7 June 2019]