Week 7 EOC: Trump and Small Business

My post is based off an article written by Dhani Mau for Fashionista.com. The article is entitled:

HERE'S HOW TRUMP'S WIN COULD AFFECT THE FASHION INDUSTRY AND GLOBAL TRADE.

It is basically an overview of what experts are saying in regards to Trump winning the election as well as what to expect and what damage has already been done to the markets. “Asian indexes tumbled as early projections of the U.S. election showed Donald Trump pulling ahead in the presidential race” (WWD, 2016). Also, luxury stock for European retailers such as L’Oreal and Prada are down across the board. It is important to recognize that much of what we wear and buy in America as far as apparel and accessories are made in other countries. Trumps intention to place limitations on Global Trade, could have adverse effects on the fashion industry. “When it comes to trade, Trump has proposed some pretty radical changes that could inhibit globalization, including getting rid of the Trans-Pacific Partnership deal” (Mau, 2016).  The United States is currently participating in negotiations of the Trans-Pacific Partnership (TPP) Agreement. Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam are among the 11 Asia-Pacific counties involved in negotiations. The “trade agreement that will open markets, set high-standard trade rules, and address 21^st-century issues in the global economy.  By doing so, TPP will promote jobs and growth in the United States and across the Asia-Pacific region” (United States Trade Representative, 2016). If Trump seeks to eradicate or limit the TPP, international luxury brands could take a significant hit due to increased taxes on foreign goods. Honestly, it is hard to say at this point what will or will not happen, Trumps volatile nature makes the outcome unpredictable. We will just have to wait and see what his next move is and pray that his strategy has a positive impact on the economy and global trade.