Description Last year saw the rejection by the US regulators of a possible buyout of the Chicago Stock Exchange by Chinese investors. This year we are seeing the current trade war between China and the US. This has just got compounded with the detention of the Huawei CFO in Canada. Apparently, the CFO was detained at the behest of the US. Currently, the US has imposed or threatening to impose very strong tariffs on all major Chinese exports into the US. This interestingly has placed not just China under pressure, but virtually every US multinational with linkages to China. Europe has been witness to steel dumping as a result. Worse still, it has impacted many countries as well given the global supply chain linkages. Countries, economies, and businesses (and irms) are impacted. The doomsdayers predict a slowdown in the economy. Canada is also likely impacted as a result. While there is a lot of speculation that China will be give up some share of the global market as a result of a Trump administration imposed tariffs, economists are predicting that in reality, USA will continue to import heavily. It has been argued that some other countries may benefit as a result of the tariffs and penalties and those economies may be literally gaining at the expense of China. Under the circumstances, what kind of policies should these countries (economies) undertake or follow to maximize the opportunity? What business strategies can be thought of for enterprises/businesses in these countries. Are these beneits/gains sustainable? Lastly, if you were a CEO of an enterprise with a globally linked supply chain (impacted by Trump’s’ China policy) what steps can be undertaken to minimise the impact of the trade war on your organization or may be even convert that into an opportunity?
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