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  • Essay / President Donald Trump's Policies and Their Effects on Merger Activity

    The global economy has evolved significantly since 2016. Led by Brexit, the rise of populism on the European continent, and Trump's presidential victory, the globalization has been shaken to its foundations. and is plagued by uncertainty, both politically and economically. The election of Donald Trump perfectly illustrates the political uncertainty that fuels our arguments. By adjusting our studies for the effects of election results and noting their dramatic effect, we should be able to link these results to cross-border M&A activity. Our essay will attempt to examine how his policies on factors such as taxation, trade, politics and international relations interacted to affect merger activities, both locally and globally. Say no to plagiarism. Get a custom essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay President Donald Trump has made several bold promises during his path to the presidency, including regarding tariffs, taxation and repatriation. Starting with tariffs, Trump promised to rebalance the trade deficit with China. To do this, he imposed several rounds of tariffs on Chinese goods, with the last round occurring in early September 2019, slapping 15% tariffs on $110 billion of Chinese imports. He also proposed tariffs on $300 billion worth of Chinese goods in May, a further escalation of simmering tensions between the world's two largest economies. This is in addition to 10% tariffs on $200 billion of Chinese imports in 2018. On tax, during his campaign speech, the president promised a major overhaul of US tax law, with promises of major changes. tax cuts, reducing corporate tax rates to as low as 15 percent. The president stayed true to his word with the introduction of the Tax Cuts and Jobs Act in 2017, which reduced corporate taxes from 35 to 21 percent. It also made repatriation easier by reducing tax on profits made abroad. All of these factors have impacted business investment decisions globally. The trade war has wreaked havoc on its two main counterparts: America and China. For America, due to the President's efforts to target China and its products through punitive tariffs and executive orders, many companies will begin to consider moving their business operations to other countries to avoid the associated costs. to the continued fallout between the two largest countries in the world. savings. These actions would result in decreased foreign market presence and increased costs of foreign products imported into the United States. As for China, losing access to American technology, an important weapon in the president's arsenal, would result in an economic slowdown for China, especially as it continues its path to becoming a global power. Another factor that poses a problem for China is that America, through CIFIUS, continues to carefully monitor incoming foreign investment in the name of national security, particularly from China, in areas such as technology, and blocks several deals involving the acquisition of low-cost tech startups in the country. name of national security. Several Chinese sectors, such as technology and.