Question

In: Economics

List 5 recommendations that can be made regarding the latest Political Risks that is happening in...

List 5 recommendations that can be made regarding the latest Political Risks that is happening in the United States:

(please answer with some sense not just copy paste it from google, I'm sick of it)

Solutions

Expert Solution

United states is one of the global nation and thus its decisions whether they are related to political or economical concerns has a direct impact on other countries which are dealing with United States economically and as well as politically. Recently United States has made some changes and rules by which political risks have been created.In December US announced tax reforms which changed the growth forecast by IMF by 50% so United States should make these type of decisions by taking acceptance of other member countries through which other countries will also be prepared earlier and it will affect them not much to some extent. In the first part of the year US announced tariff increases on steel and aluminium and other trade policy measures targeting China. Through which Share prices of German car manufacturers decreased not because of impact of increase in Tarrifs but because of fear that like this policy was made targeting China, other countries like Germany also thought that United States can soon target them also.Sony United States should not perform these types of steps which have a negative impact on other countries directly, they should not target any other countries directly. There should be rules that prevent other countries. Most recently US Treasury unexpectedly announced sanctions against Russia, targeting 24 Individuals and 12 companies, effectively cutting them off from the western markets. There are good and bad elements to these political shocks for businesses and investors. Thus United States should stop these type of actions which are affecting economic growth globally. US is attacking every country one by one and by this actions they are weaking other countries growth and development.


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