Real World Warning From Ted Bauman
At the end of August 2018, none other than esteemed business expert Ted Bauman issues a stern warning about the trade war that President Donald Trump has declared on foreign nations. While traveling throughout South Africa, Switzerland and Germany, Ted Bauman noticed and use quite a few “American” brands. These brands were such United States stalwarts as Coca-Cola, Ford, and Google. While the products he was using were actually manufactured in the respective countries he was using them in, they still generated revenue for American companies and their investors. Namely, by the money received from trademarks, copyrights, and licensing fees.
For some reason, the United States government does not consider these products and the revenue they generate as actual exports, a fact that Ted Bauman says baffles him to no end. It is also the main reason why he issued such a strong condemnation about Trump’s tariff plan and its potentially devastating effect on American investors.
What Trump, the rest of the government, and the media are failing to take into consideration are the literal billions of dollars that U.S. firms located in foreign nations take in. When this money is factored into the equation, these supposed deficits actually become surpluses in sales. There is no real reason that companies need to manufacture their items in a certain country and then ship them to a different company. Where much money is made is on the licensing fees that are generated when foreign companies use names trademarked by American companies.
According to Ted Bauman, any investor who invests heavily in American companies who have foreign subsidiaries should be terrified of the new tariff laws that Trump is proposing. This is true for companies as large as Apple all the way to major farms who grow soybeans.