Impact of Trump's Economic Policy on China

The assignment provided explores how Trump's approach to economic policy has impacted the economy of China in great extent. It uses examples like Coca Cola to illustrate business opportunities that focus on global expansion. Additionally, it discusses the role of fiscal and monetary policies in facilitating economic activities and growth in the economy.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
A. Explain how President Trump’s approach to economic policy impacts upon foreign
economies such as China.......................................................................................................3
B. Interpret how emerging economy are presenting opportunities for global expansion......5
C Fiscal and monitory policy used by government................................................................6
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................7

INTRODUCTION
Environment comprises of external factors that are beyond the control of organisations
and it is fully dependent on various factors such as pricing, vendor demands and raw material
etc. Global environment of businesses comprises of factors such as economic policy of different
countries and technological factors that can have a great influence on the working of an
organisation. The report will analyse how president trump's approach to economic policy impact
upon foreign economies such as china (Salvatore, 2015). It will also analyse how emerging
economies can present opportunity for global expansion. The later part of the report deal with
hoe government can use fiscal and monetary policies to stimulate economic activity.
A. Explain how President Trump’s approach to economic policy impacts upon foreign
economies such as China
Donald John Trump is currently holding the position as 45th president of the Unites states. His
presidency will be termed for the period of 2017 to 2021. the economic plan which is being
proposed by trump largely emphasizes on making America great again. The nationalistic
philosophy of the trump depicts a dream that comprises of taking America back to favourable
position where it was in the past. He took pledge that comprised of certain policies and
regulation which involved declining the level of immigration in the country, reforming
individual and corporate tax laws.
Trump's economic policy led to trade wars between countries. Which involved nations
attacking each other by ways such as quotes as well as taxes. Which resulted in political tension
among several countries. The president placed tariffs on goods that are worth a billion of dollars
around the world and in particular from china. He also plans to cut the trade deficit with china.
The unites state has a massive amount of trade deficit with china. In order to cut back the trade
deficit he intends to use tariffs to do the same.

(Source: US Trade in Goods with China, 2019)
The president levied heavy tariffs on steel and aluminium trading against china. In regard
with the there were announcements that declared the rates to be 10% on aluminium and 25% on
steel. It has a massive impact on the china's economic condition and also on it's exports. If the
tariffs are imposed on exports the the overall cost of manufacturing products are going to raise.
Will will affect the desire of enterprise to export goods to china. Therefore the entire situation
have great impact on manufacturing of the nation. When the manufacturing sector get impacted
on such a great level it is going to impact and reduce the level of various factors such as
employment opportunities, economy value and various other correlated issues. Therefore the
Illustration 1: US Trade in Goods with China

trump's approach to economic policy have impacted the economy of china on great extent (Trade
wars, Trump tariffs and protectionism explained 2019)
B. Interpret how emerging economy are presenting opportunities for global expansion.
Emerging economies comprise of developing markets that have the potential of providing
profits to the organisation that are entering the developing markets. The key essential element in
emerging market are lower rate of per capita income, more level of return fro the investors and
rapid growth which have been witnessed in the recent times. All of these factors results in
establishment of merging market economy. According to statics March, 2018 the Morgan
Stanley emerging market index classified 24 countries as emerging countries. The countries are
China, Brazil, Korea, India etc. (Outperformers: High-growth emerging economies and the
companies that propel them, 2019).
A example of how emerging countries provide opportunities for global expansion can be
gained by looking into the coca cola company. It began it's operation in international market in
the year 1920 and started expanding globally in 1920. The business focussed on taping region
that can provide business growth opportunities. In the initial stage the coke expanded their
production in location such as Guam and Europe. After gaining popularity the business began to
expand in other countries such as Australia, Italy and south Africa (The Chronicle of Coca-
Cola: A Global Business, 2018). By effectively using infrastructure facilities and transportation
the company was able to expand globally and was bale to gain edge over other competitors in the
market.
By global expansion businesses are able to access to talented and skilled personnel. The
labour in the international market tent to pose advantage to the organisation. They tend to posses
advance level of skills and language knowledge which gives and edge to the business
corporations therefore, they tend to desire for expansion in the global market. A example of this
is Apple Inc that is functioning in major manufacturing units that are based in china. Which was
done with motive to take advantage of labour that were present there which have helped the
business in their production processes. Whereas the Netflix organisation started operating in
Amsterdam. When the company started their operation there the entire management team was
impressed due to the the availability of multilingual workforce which was offered by the
location. As by hiring multilingual staff that company focussed on ensuring that their staff can

easily understand the mindset and culture of the customer that exist across different parts of the
Europe (13 Businesses With Brilliant Global Marketing Strategies, 2019).
Therefore by entering in the global market organisations can facilitates their product to
the customers that exist in the different part of the globe. Along with taking vanadate of efficient
labour force. So, emerging economies tent to create opportunities that can be taped by businesses
in order to operated in the global economy.
C Fiscal and monitory policy used by government
Fiscal and monitory policy both plays an important role in shaping the country. Fiscal
policy is associated with government spending and revenue collection. Where as the monetary
policy is related with the supply of money that is being controlled by various factors such as
interest rates and revenue requirements (Compact, U.G., 2014).
Fiscal policy
It is one of the tools by which government facilitates control. The main toll of fiscal
policy are taxation that effects the aggregate demand and government spending. The fiscal tools
tent to answer two question first one how much government should spend and how it should fund
their spending. The decision related to the amount of spending can depend upon the economies
current economic and political standpoints. In order to raise funds and tackle economic
conditions such as recession the government will focus on maximising the growth and keeping
the inflation low which is aimed at stabilising the economy. With the use of fiscal policy the
government can increase the tax which will cut down the spending of people and will help the
government in reducing the level of inflation in the economy. It will also help the government to
reduce the amount of budget deficit and will help them in reducing the aggregate demand in the
economy. Where as in recession the government will do the opposite and will increase the
government spending and reduce the tax rates which will assists them in increasing the
disposable income that will result in economic growth and reduction in unemployment level.
Monitory policy
The monetary policy of the government involves influencing the demand and supply of
money that can be done through various tools such as interest rate and other monetary tools. The
monetary tools are being used by authorities for example by central bank e.g U.K. The main
motive of the monetary policy is to lower the inflation rates in the economy in order to do so the
government uses the main toll which is interest rates For instance if the central bank thinks the

economy is growing on a higher rate and the rate of inflation is high then in order to maintain
balance they will increase the interest rate in order to reduce the demand in the economy. In
other circumstance the Central banks can also take help of some other tolls such as in the great
recession period that existed between 2008-12 they increased the supply of money in order to
increase demand.
Thus, government will use both fiscal and monetary policies effectively in order to
stimulate economic growth and activity in the economy.
CONCLUSION
From the above report it can be concluded that the the trump's approach to economic
policy have impacted the economy of china in great extent. The report will enlighten the how
emerging economy can facilitates business opportunities that focus on global expansion by using
certain examples such as coca cola and later part of the report will highlight the role of fiscal and
monetary policy in the facilitating economic activities and growth in the economy.
REFERENCES
Books and journals
Salvatore, D., 2015. Managerial economics in a global economy. OUP Catalogue.
Compact, U.G., 2014. Overview of the UN Global Compact. Recuperado de https://www.
unglobalcompact. org/ParticipantsAndStakeholders/business _associations. Html.
Pikhart, M., 2014. Implementing new global business trends to intercultural business
communication. Procedia-Social and Behavioral Sciences, 152, pp.950-953.
Online-
Trade wars, Trump tariffs and protectionism explained. 2019. [Online]. Available
Through:<https://www.bbc.com/news/world-43512098>.
13 Businesses With Brilliant Global Marketing Strategies. 2019. [Online]. Available
Through:<https://blog.hubspot.com/marketing/global-marketing-and-international-
business>.
The Chronicle of Coca-Cola: A Global Business. 2018. [Online]. Available
Through:<https://www.coca-colacompany.com/stories/the-chronicle-of-coca-cola-a-
global-business>.
Outperformers: High-growth emerging economies and the companies that propel them. 2019.
[Online]. Available Through:<https://www.mckinsey.com/featured-insights/innovation-
and-growth/outperformers-high-growth-emerging-economies-and-the-companies-that-
propel-them>.