Question

Write a 800 word essay. The purpose is to demonstrate your knowledge about principles of macroeconomics and ability to apply these principles to issues in the real world. It should be as analytical as possible; you should avoid merely describing the issue or simply repeating work by other authors. You have to pick a company and show how macroeconomic developments impact its business. It can be about trade, foreign exchange rates, foreign direct investments, financial criris or something else.

Answer 1

Verizon has seen massive problems due to US China Trade deficit as many of import gears for network consolidation comes from Chinese counterparts.

The second biggest issue been surfaced is US China Trade War, Immigration Laws, US National Debt, Foreign Relations policy  

US and china have great history of trade wars however recent times has been largely due to sanctions been imposed on china by USA.

Recently, USA slpped tarrifs on 40% of chinese goods. which has caused prices of US goods to go up substantially becuase cheap imports fro china have been stopped.USA has also stopped cheap imports of steel and as a result Chinese government too has imposed substantial tarrifs on USA goods.

As a result, there has been currency devaluation in China to make it goods look more cheaper and attractive and has started selling Goods in emerging markets. US goods however have become more costlier and hence sales have decreased.

Chinese government has aggravated trade war by imposing fresh round of tarrifs , however before G20 summit which will be held in 2018, such issues will be resolved.

Since, China has imposed tarrifs we see there has been lack of entry of chinese workrs and visas in USA which has nullified the clear cut winner. Because of trade war, India has managed to export steel and aluminium to US markets and hence has been the greatest beneficiary.

Given the Presidential Power following economic strategies need best case implementation :

Resolution of NAFTA deal with negotiation as well as maintenance of great relationships with South Korea on denuclearization by maintaining an eye on all developments
US China pact and removal of tarriffsby signing of MOU and economic cooperation
Immigration laws been relaxed by allowing H1B for Indians who look to create startups IN UsA and generate more employment
Debt refinancing and additional taxation on corporates with large market Capitalization to decrease debt in short term.
Increasing interest rates to appreciate dollar and control inflation and money supply in market  

We have also seen widescale implications due to microeconomic concepts of proprietary information and copyright laws in Telecommunications industry.

Proprietary information in organisation like Verizon is generally trade secret or patent or distribution process.

One of such issue faced by Verizon was the secret of offering heavy data speeds in high capacity areas and peak hours which was best known to them and had been replicated by competitors like Tmobile and Sprint.

As results lawsuit was filed for patents been disregarded by competition and adopting similar framework of Verizon.

Solution to address such issues:

SSL 552 encryption of documents
Blockchain methodology to keep confidentiality of information
Cyber security teams and strong firewall networ

References:

Bailey, Martin Neil, What Happened to The Great American Job Machine!? The impact of trade and electronic Offshoring.

Cline, William R 2004. Trade policy and Global Poverty. Washington : Institute for International economics

Goldman Sachs, 2003. Dreaming with BRICS: the path to 2050. Goldman Sachs Global Economics paper 99

Zoelick, Robert B 2001. American Trade Leadership : What is at Stake? Speech before Institute of International Economics washing mton, September 24.

Schott, Jeffrey, 2004. Free trade agreements :US strategy and Priorities. Washington: Institute for International economics