Assignment 6A – Identifying Opportunities in Economic & Regulatory Trends

Assignment 6A – Identifying Opportunities in Economic & Regulatory Trends

Economic Opportunity 1: Strengthening Global Demand

I found an economic opportunity for American goods to become more competitive abroad. This is a result of the growth in global GDP, which is protected to be at 4% in 2018. When the economies abroad are stronger and wealthier, there is more demand for US goods and exports. Thus, this leads me to believe that there is definitely an economic opportunity for American goods to become more competitive and more sought after. Both the United States and countries abroad are the prototypical customer of this opportunity because with higher GDP, there are stronger economies, more spending, and more money circulating. I think this opportunity is relatively easy for the US to exploit because they can export more goes to the countries abroad that have growing GDP’s. I believe I saw this opportunity because I learned about GDP in my macroeconomic and microeconomic courses. I was already aware of the concept that higher GDP leads to stronger economies and more buying power. Thus, it makes sense that the US can capitalize on this economic opportunity.

Source: https://commercial.jpmorganchase.com/pages/commercial-banking/executive-connect/six-key-economic-trends

Economic Opportunity 2: Tax Reform Taking Hold

I found an economic opportunity for consumers to have more money in their pockets by the end of 2018. This is a result of Trump’s tax reform to reduce the effective tax rate by about 4%. Thus, by cutting the federal government’s revenue they are able to lower taxes and ultimately give the consumers more of their money from their paychecks. Therefore, this definitely leads me to believe that there is an economic opportunity for Americans to have more money in their pockets by the end of the year. In addition, all American citizens are the prototypical customers for this opportunity. I think it is relatively easy for Americans to exploit, because if there is tax reform, they automatically have more money in their pockets. I believe I saw this opportunity because I am aware of the idea of taxes. Over the summer, a large portion of my money was deducted from my paycheck for taxes. Thus, if we were to have tax reform, I would have a lot more money in my hands.

Source: https://commercial.jpmorganchase.com/pages/commercial-banking/executive-connect/six-key-economic-trends

Regulatory Opportunity 1: Sales Tax

I found a regulatory opportunity regarding sales tax. This regulation is a result of the Supreme Court case South Dakota v. Wayfair, which resulted in the end of zero sales tax on solely e-commerce businesses. Thus, as a result of this information I believe an opportunity now exists for brick-and-mortar retailers. They are now able to stay competitive with e-commerce retailers. Thus, brick-and-mortar stores re the prototypical customers for this regulatory opportunity regarding sales tax. I think this opportunity is relatively easy to exploit because there has to be sales tax on e-commerce purchases. I believe I saw this opportunity because I used to buy expensive goods on the internet to avoid paying sales tax. However, now since you have to pay sales tax online I will go to a store to buy the expensive good because it is the same price and I will have it sooner.

Source: https://www.businessnewsdaily.com/7671-regulatory-issues-changes.html

Regulatory Opportunity 2: Tariffs and Trade Policies

I found a regulatory opportunity regarding tariffs and trade policies. As a result of Trump’s policies regarding tariffs on our current trading partners, our trading partners have set high tariffs on US exports in defense. Thus, I believe an opportunity exists for small businesses to buy more goods and equipment now to avoid impacts in the future. I think small businesses are the prototypical customer because they do not have as much spare capital to waste on tariffs. I think is opportunity is relatively difficult to exploit because some small business may not have enough capital to stock up on goods, supplies, and equipment before the tariff increase affects their business. I think I saw this opportunity because I have a lot of passion about small businesses. My dad owns his own business so I am always on the lookout for opportunity for him to increase his business.

Source: https://www.businessnewsdaily.com/7671-regulatory-issues-changes.html