BM461: Analysis of Trump's Economic Policies and Global Impact

This report analyzes the economic policies implemented by President Trump and their subsequent impact on the global economy, with a particular focus on emerging markets. It discusses the withdrawal from international agreements like the Paris Climate Accord and mega trade deals, highlighting the resulting uncertainties and shifts in global leadership. The report also examines the effects of tariff changes on developing countries and the devaluation of currencies, particularly concerning China's economy and its trade relationship with the US. Furthermore, it addresses the consequences of Trump's debt reduction plan, which paradoxically led to an increase in the national debt. The report also discusses opportunities for global expansion by emerging economies, including income growth and innovation. Desklib is a platform where students can find past papers and solved assignments.

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b. President Trump’s economic policy

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Table of Contents
Introduction......................................................................................................................................3
Trump's economic policy and its impact.........................................................................................3
Conclusion.......................................................................................................................................4
References........................................................................................................................................5

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Introduction
In this report, the President Trump's approach will be discussed which is made in relation to the
economic policy. With that, the impact which will be made by the approach on the foreign
economies will be discussed. All the aspects in relation to this will be considered by which the
proper understanding in relation to them will be gained. The required steps will be taken with the
help of the findings which will be made in the report.
Trump’s economic policy and its impact
In every nation, it is important to maintain a good economic position and for that, there is the
need to have the appropriate policies. Trump has made certain policies in Us and the main focus
of them was on making America great again (Fxcm, 2019). There were various such actions
which were taken by him and impacted the economy of various other nations. There was the
withdrawal from the Paris Climate agreement which also affected all other parties to contract.
There were mega trade deals and trump made the withdrawal from them which lead to
uncertainty as the US lost the leadership in the international trade market. Due to this the other
signatories of the TPP were in response and were trying to keep the agreement running. In this
situation, China came into the role as some countries came in its orbit (Amadeo, 2019). There
were various opportunities which were lost due to this and this includes the transatlantic alliance.
The whole scenario gave an opportunity to the EU who can now lead the international trade
agreements. All of this lead to the downfall of the US economy losing its stake and other
economies got the benefit of the same.
Trump changed the tariff plans which were earlier imposed and there were strict tariffs which
were imposed on the imports made from all the countries. By this, the goods which are exported
from developing countries to the US will be affected. The currency is devalued due to the
imposing of the high tariffs on the imports. Due to this, there were various corporations which
relocated their production facilities (Wang, 2017). The main impact of this is faced by China as
most of the goods which are produced here are supplied in the US only. By this, the Economy of
the country is affected and in order to maintain the required relation, there will need to make
various concessions with the US. The global markets are affected by the change in the GDP of

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China. Also, there was a policy in relation to the currency of China according to which the
increase in the valuation of Yuan was made. This lead to an increase in the product cost of China
and that too more than the competitors in Southeast Asia. The decision of trump to consider the
Yuan as undervalued was not correct as the currency was overvalued (McKee, Greer and
Stuckler, 2017). Due to this, the currency faced a disadvantage when the exchange rate was left
in the free market to float.
According to Trump, there was wastage which is made due to the federal spending and so the
debt shall be reduced. There was a debt reduction plan which was imposed but the impact was
reverse and there were an additional 5.3 trillion dollars which were added to the debt of the
nation (Hochschild, 2016). There was cutting of the taxes by which growth was anticipated bit
that lead to an increase in the cost of the government thereby increasing the country's debt.
There were various other policies also which were imposed by trump and all the economies had
to face the impact of them. This lead to various negative as well as positive impacts on the
complete environment in the economy.
Conclusion
The report above presented all the important policies which were introduced by the trump in the
US. They were such policies which have impacted on the other economies. All of the
information in relation to the changes has been provided in the report. There was an increase in
the rate of the tariffs which are imposed on the imports and exports made. By that China had to
suffer and that has been identified in the report. The change which has been made in the currency
has also been determined and the impact which is faced due to that has also been considered. The
manner in which debt reduction plan was made and the effect it had on the overall debt position
has been evaluated in an appropriate manner.

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References
Amadeo, K. (2019) President Donald Trump's Economic Plan. [Online] Available at:
https://www.thebalance.com/donald-trump-economic-plan-3994106 [Accessed 5 June 2019]
Fxcm. (2019) How Will President Trump’s Policies Affect Trade And Economics?. [Online]
Available at: https://www.fxcm.com/uk/insights/how-will-president-trumps-policies-affect-trade-
and-economics/ [Accessed 5 June 2019]
Hochschild, A.R. (2016) The ecstatic edge of politics: sociology and Donald
Trump. Contemporary Sociology, 45(6), pp.683-689.
McKee, M., Greer, S.L. and Stuckler, D. (2017) What will Donald Trump's presidency mean for
health? A scorecard. The Lancet, 389(10070), pp.748-754.
Wang, H. (2017) How May China Respond to the US Trade Approach: Retaliatory, Inclusive
and Regulatory Responses. Colum. J. Asian L., 31, p.1.

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c. Opportunities for global expansion by
emerging economies

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Table of content
Introduction......................................................................................................................................8
Opportunities for expansion by emerging economies.....................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Introduction
In this report, the concept of the emerging market will be discussed. In that, all the opportunities
which are available for the global expansion will be discussed. There are various such ways
which are available in the new economies by which the growth can be made by the existing
businesses as well as the new entities. All of the aspects by which this will be made possible will
be taken into consideration in the report presented below.
Opportunities for expansion by emerging economies
Emerging markets are the economies in which there is the advancement taking place and the
economy of those nations is on the rise. It is important that all the new emerging economies shall
be identified so that the benefit of them can be attained (EDC, 2019). There is the need for the
expansion and the new markets provide great scope for the same. It is important for the company
to understand the economies which are emerging so that they can attain the growth by that. This
is due to the reason that there are several opportunities which are available in those markets for
expansion. In such markets, there is fast income growth which is involved. If the income will be
more than consumers will have more demands and will want new and quality products (Velocity
global, 2019). In such a situation if there will be the correct market and the appropriate product
to be supplied then the expansion will be made. In that various other aspects will also be required
to be taken into account by which the progress is affected such as the price of the product.
Globalization is going and in that there is the need for innovation so that new markets and
customers are attracted. There will be an identification of the needs of the consumers so that
provision of service can be made accordingly. There are certain shortcomings also of the new
markets and they are needed to be considered while considering innovation (Madhok and
Keyhani, 2012). The product shall be such which can beat the other competitors in the market
and by that competitive advantage will be gained. Several risks are also involved such as the
legal system of another country, corruption, and various others. By undertaking all of them in
consideration the companies can plan for global expansion. There will be needed to make the
process in such a manner that all the risks are avoided so that they do not affect the expansion in
an adverse manner. The emerging economies will be new and in that new technology will be

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used by which the expansion can be made in a better manner. There will be the development of
such products and services which will be new to the market and then the benefit of the same will
be attained. There will be no such product in the market and so the same will be able to attract
the consumers who are fond of new and innovative products.
In the process of making of expansion, there will need to have the understanding of cultural
aspects of the market so that all the elements in relation to that can be taken into account
(Hoskisson et al., 2013). All the problems which are there in the existing situation will be
identified and then the process will be formulated for the elimination of them so that expansion
and globalization can be processed in an effective and efficient manner. All of these will be
helping in the expansion and by that various other benefits will also be attained.
The emerging markets will be giving the opportunity for the adoption of the best management
practices. This is because of the fact that there are no older techniques in such economies and so
the practices as per the requirements will be made which will be provided with the required
results (Kiss, Danis, and Cavusgil, 2012). They will be making the process easy so that it can be
undertaken in a proper manner to have the expansion made adequately.
Conclusion
The report has considered all the important areas which need to be covered and kept in
knowledge about the emerging economies. There is a wide scope for the growth and expansion
in such markets and all the factors for the same have been identified. The opportunities which are
available have been determined and the manner in which they will be helping in the attainment
of the expansion in the globalized market. The risks which will be faced are also considered and
the manner in which the process shall be carried has been developed.

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References
EDC. (2019) The outperformers: Opportunities to grow sales in emerging markets. [Online]
Available at: https://www.edc.ca/en/article/grow-sales-in-emerging-markets.html [Accessed 5
June 2019]
Hoskisson, R.E., Wright, M., Filatotchev, I. and Peng, M.W. (2013) Emerging multinationals
from mid‐range economies: The influence of institutions and factor markets. Journal of
Management Studies, 50(7), pp.1295-1321.
Kiss, A.N., Danis, W.M. and Cavusgil, S.T. (2012) International entrepreneurship research in
emerging economies: A critical review and research agenda. Journal of Business
Venturing, 27(2), pp.266-290.
Madhok, A. and Keyhani, M. (2012) Acquisitions as entrepreneurship: Asymmetries,
opportunities, and the internationalization of multinationals from emerging economies. Global
Strategy Journal, 2(1), pp.26-40.
Velocity global. (2019) Taking Advantage of Emerging Market Opportunities. [Online]
Available at: https://velocityglobal.com/blog/taking-advantage-of-emerging-market-
opportunities/ [Accessed 5 June 2019]