MNE VS. TRUMP's USA


Today’s political rhetoric is difficult to navigate. This is due to confusing messages sent from the current US administration, but also echoes from the base which flung it into office. One very publicized reason for the conflict now engulfing the US economy is the emphasis on trade and more precisely, the actions of multi-national corporations. These companies hold considerable wealth and power which threaten the position of the US.

The United States is concerned with maintaining control of its economy. President Trump continually attacks friend and foe alike in defense of this aim. He has recently aimed at automotive manufacturers, pharmaceutical, and technology companies who utilize well-developed and versatile transnational means to acquire extreme wealth and ultimate efficiency, in his mind, at the expense of American people.

Whether President Trump is aware of the current international atmosphere or not is unclear. What is abundantly evident, however, is that multinational corporations have far more options for success and riches than states do. In all of these threats and blustering, very little has been accomplished. International companies have considerable leverage to move production overseas and may have economic incentive to do so. Ultimately, President Trump is trying to bully corporations into complying with very little ammunition. Taxes and tariffs can be avoided by moving production and anything further could risk shocks in the economy which would hurt the regime politically.

In this age, multi-national corporations are not easily persuaded to comply with demands from governments unless incentivized with positive rewards. President Trump’s tax overhaul certainly was on track for this, but his tariffs and anti-free trade rhetoric has reversed the good fortunes that the new tax code promised for corporations. If this administration continues with the current strategy of threats, tariffs, and protectionism then a confrontation with these multi-national enterprises is approaching in which the US has much less economic weapons available.    

Comments

  1. AnonymousJuly 19, 2018 at 5:32 PM

    It definitely goes to the heart of finding your competitive advantage and exploiting it. If the US cannot produce steel and other labor intensive goods as cheap as China can, then we should continue to focus on data and technology, cultivating Silicon Valley and empowering our society to become part of that economy. Understanding what trades to support would be critical as well, why force the steel industry to stay afloat when you can invest in training plumbers, electricians, and other crafts that will always have value within society. All that being said #covfefe

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