July 21, 2003

Foreign Policy Economics

I have not seen any statistics on the impact of the many cries to boycot French products we heard during the buildup to the Iraq war and I wonder just how happy the bushies corporate funders will be if current foreign policy has a large negative impact on worldwide sales.

Echoing harvard Professor Business School Professor John Quelch's April warning:

Selling the American dream has paid off handsomely. Eight of the ten most valuable brands in the world, according to the Interbrand consultancy, are American, and each derives more than half its sales from outside the United States. But now a deepening opposition to American foreign policy is threatening the long-term strength of these brands.
Newsweek reports:
Does the rising tide of anti-Americanism hurt American multinationals? The vocal antiwar protesters would like to think so, but there hasn�t been much evidence for a broader consumer turnoff, until now.
Reporting on the same study the Independent headlines:
Americans are used to resentment of their global dominance. Since the war on Iraq, however, this hostility has begun to hit them where it hurts: in corporate balance sheets.
Countering the gloomy reports Nike and Mcdonalds say that their European revenues are respectiviely either up or flat. It will be interesting to watch these figures over the next 6-12 months.

Via Alternet.

Posted by Steve on July 21, 2003
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