In this paperwork, I am going to discuss the problems or the benefits Supply Chain Management may encounter as a result of the current presidential race- the implications if Donald Trump is elected.
The impacts have already started to be felt as a result of the presidential election race. The presidential race has established a major negative effect on confidence and mood in the United States, since candidates are creating a ground between hopefulness and trepidation. In the United States, most of the businesses have decided to go slow, due to the numerous uncertainties depicted by candidates running for presidency.
According to Terry, the 2016 presidential race has the prospective to pessimistically impact Hispanic ventures among United States Companies as a result of the ongoing subject on immigration, hence slowing down doubtful companies from investing. Hispanic ventures are, therefore, delaying their strategic planning waiting for the presidential race to conclude. It is, also, important to note that immigration policy is said to have an impact on judgments to employ United States citizens, HIB visa employees, or subcontract. According to my stand, either a democrat, or a republican president is liable to have a strong drive to raise taxes, thus, making operating cost to exacerbate (CNBC, 2015).
Donald Trump is thought to have the ability of bargaining for better deals when making business choices, by his supports, as a result of his understanding and honest system of international business leaders. Trump promised to inflict a 35% tax on American businesses that do not produce their products in the US; for example, Apple Company. According to Donald Trump, his main objective, to inflicting this tax, is to bring the American companies home (CNBC, 2015). It is important to note that numerous companies will always make calculated moves so as to achieve the goal of a rational company- maximizing profit. The cost of producing a product in a foreign country could be cheap as compared to the cost of producing the same product in United State as a result of the availability of cheap labor as well as material resources (Lewis, 2004). The companies that respond to this call are likely to raise the cost of products, thus, affecting their market share enormously- the tactic is, also, likely to institute harmful rapport with other countries, especially, China. It is also important to note that consumers will always insist on new products at the right time, for this reason, challenges will crop up, since creating both receptive and cost-effective supply chains is perilously complicated. The policy, on relocation, will be giving the competitor a competitive advantage in the global market (Lewis & Stephen 98). Apple coming home will mean that it will not be in a position of delivering products to the outside world on time, thus, ruining the already established trust. Clients from these countries will have no other alternative, but to pick other companies.
Donald Trump promises to inflict a 45% tax on commodities imported from china as well as a 35% tax on commodities imported from Mexico subsequent to being elected. His main objective is to reduce competition from outside world, thus, creating a good environment for the production of local goods. According to my view, this method is likely to cause a split from the global market. It is important to note that the Mexican plays a significant part towards the growth of United States economy thus; keeping them away from business will affect the economy pessimistically (98).
It is, now, clear that the method, projected by Donald Trump, is more likely to cause more problems than benefits in the global supply chain management. The businesses that operate within United States will end up monopolizing the market as a result of the application of this method, thus, generating more profit (Lewis, 2004).
Works cited
Lewis, Pamela S., Stephen H. Goodman, and Patricia M. Fandt. Management: Challenges for Tomorrow’s Leaders. Mason, OH: Thomson/South-Western, 2004.Print.
President Trump’ Would Shake up the Economy: CEO.’’CNBC.2015.Web.16 Apr.2016.
