Sunday, February 23, 2020

As India's economy decreases, Trump's brand is struggling


Video

Most of the $2 million apartments are vacant in the Trump towers, sales have slowed down, and buyers are barely visiting. Pankaj Kapoor, the managing director of Liases Foras, an Indian real estate research company, says that India’s economy is at an all-time low and that “In the past, the Trump name may have helped attract investors, but gone are those days.” However, the Trump brand is not the only thing being affected, many apartment buildings are vacant or trapped in construction delays.

According to India’s most recent annual financial disclosure for 2018, the company earned as little as $200,000 last year on all four of its projects in India. The maximum revenue reported at Trump Organization from the projects dropped from $6 million in 2017 to $2 million in 2018. 

The goal for India’s economy to prosper once again is to have Trump visit again, assure that he will help overcome the challenges of India’s property market, and a promise of investment.

  1. Do you think other countries who have an economic slump will have the same effect on Trump’s business?
  2. If Trump does not win this upcoming election, will his efforts worsen the economy of countries like India?
  3. What do you think is the next step to help 3rd world countries?

3 comments:

Anonymous said...

I think that especially if Trump does not win this election, then India's economy will definitely slump because people will not be interested in investing in a company that has the name and face of someone who is not the current American president. People will think that since he did not win the election, he was not that great in the first place, causing them to stop funding these investments. On a side note, it honestly is very saddening to me to see how diverse India is and Modi trying to promote a national Hindu agenda. As a Hindu, I do embrace my culture but also respect other people's heritage there. But since Trump has had a lot of influence over India, I almost feel that his mindset is being rubbed off on Modi.

Anonymous said...

I see no reason why other countries in the same situation would not have a similar effect on the Trump brand. As for helping third-world countries, the UN has a whole extensive list of goals that seem reasonable to pursue, all of which somehow probably translate to giving money and labor in the target countries/regions. There is also programs the US already runs, such as Peace Corps, which sends volunteers abroad to help promote economic development and such. Maybe more of these kinds of programs would be the right next step in helping other countries. However, it might be wise to consider if we should even be intervening in some of these countries at all. Some actions that may seem helpful in the present could become harmful in the future due to a number of factors, just like this situation in India.

Anonymous said...

Regardless of what country it is, Trump’s business will probably suffer if the economy slumps as it has in India; if people are not earning a lot of money and/or are opting to save their money instead of spend it, there won’t be a lot of buyers, especially in something as expensive as moving into a new apartment. If Trump isn’t reelected, I don’t think it would hinder his business very much. Trump still has the global name recognition and assets to leverage his company as a businessman, regardless of whether he is president or not. In helping third world countries, each country has their own situation that necessitates individualized approaches; what works for one country may not work for another. Introducing big brands like Trump has may boost one country’s economy, but for another, the same action may serve to be a crutch that, once taken away, plunges the country into deeper economic trouble. I think foreign aid should definitely be high on the US’s list of priorities, and providing more support to foreign aid programs and making sure such programs are effective for each individual country would probably be the best next step.