Dien Rice
January 28, 2017, 12:25 AM
How do u feel about Donald Trump?
Hi Hilda,
A very successful entrepreneur I was speaking with thought there are going to be many business opportunities with Donald Trump...
Why?
My interpretation is, because there's change. Whenever there's change, there's opportunity.
Donald Trump is causing rapid legislative change.
Every change means there will be winners and losers.
That means opportunity. If you can figure out who the winners will be, you can figure out how to "win" from the change, too. If you can figure out who the losers will be, you can figure out how you can profit by helping the "losers."
Here's an example I just thought of...
Trump has floated the possibility of a 20% tariff on products from Mexico entering the USA. That is essentially a tax that US consumers will pay to the US government on any products from Mexico. However, because the price of Mexican products will be higher to US buyers, Mexican producers will end up selling fewer products in the USA.
About 60% of avocados sold in the USA come from Mexico. That means avocados from Mexico will (with the tariff) cost a lot more!
Who will be the winners? Other avocado exporters... Like Chile, Indonesia, or Colombia. They'll probably be able to sell more avocados in the USA, if there's a tariff on Mexican avocados. I suppose you could rush out and buy an avocado farm in Chile!
Who will be the losers? Obviously, Mexican avocado farmers will lose. Could you help them? Maybe... If someone started a guacamole production company in Canada, and bought avocados from Mexico for their guacamole, I suspect it is no longer a Mexican product, but a Canadian one. This guacamole could then be sold in the USA without a tariff. Because of lower demand for Mexican avocados, they might be able to buy the Mexican avocados more cheaply (since they're in Canada, not the USA), and get a higher net profit than they would otherwise. They could possibly outcompete US guacamole companies (who would have to pay a higher price for avocados). So there could be an opportunity there.
If the USA puts a 20% tariff on Mexican products, Mexico will probably retaliate with a 20% tariff on US products. The USA sells a lot of machinery to Mexico, so they will probably make fewer sales, as Mexico will then buy more of their machinery from China, South Korea, or Germany. There will be winners and losers among US companies too.
That means plenty of opportunities for those who know how to spot them!
All the other legislative changes create opportunities too (though some are easier to take advantage of than others)...
Best wishes,
Dien
Hi Hilda,
A very successful entrepreneur I was speaking with thought there are going to be many business opportunities with Donald Trump...
Why?
My interpretation is, because there's change. Whenever there's change, there's opportunity.
Donald Trump is causing rapid legislative change.
Every change means there will be winners and losers.
That means opportunity. If you can figure out who the winners will be, you can figure out how to "win" from the change, too. If you can figure out who the losers will be, you can figure out how you can profit by helping the "losers."
Here's an example I just thought of...
Trump has floated the possibility of a 20% tariff on products from Mexico entering the USA. That is essentially a tax that US consumers will pay to the US government on any products from Mexico. However, because the price of Mexican products will be higher to US buyers, Mexican producers will end up selling fewer products in the USA.
About 60% of avocados sold in the USA come from Mexico. That means avocados from Mexico will (with the tariff) cost a lot more!
Who will be the winners? Other avocado exporters... Like Chile, Indonesia, or Colombia. They'll probably be able to sell more avocados in the USA, if there's a tariff on Mexican avocados. I suppose you could rush out and buy an avocado farm in Chile!
Who will be the losers? Obviously, Mexican avocado farmers will lose. Could you help them? Maybe... If someone started a guacamole production company in Canada, and bought avocados from Mexico for their guacamole, I suspect it is no longer a Mexican product, but a Canadian one. This guacamole could then be sold in the USA without a tariff. Because of lower demand for Mexican avocados, they might be able to buy the Mexican avocados more cheaply (since they're in Canada, not the USA), and get a higher net profit than they would otherwise. They could possibly outcompete US guacamole companies (who would have to pay a higher price for avocados). So there could be an opportunity there.
If the USA puts a 20% tariff on Mexican products, Mexico will probably retaliate with a 20% tariff on US products. The USA sells a lot of machinery to Mexico, so they will probably make fewer sales, as Mexico will then buy more of their machinery from China, South Korea, or Germany. There will be winners and losers among US companies too.
That means plenty of opportunities for those who know how to spot them!
All the other legislative changes create opportunities too (though some are easier to take advantage of than others)...
Best wishes,
Dien
