How Might the Presidential Election Impact Your Company’s International Relocation Plans?

Moving forward with a global expansion or greenlighting an international assignment is a considerable investment for any business. Much time is spent on assessing various internal and external factors to ensure the ROI will be worth the time, effort and risk.

Leading up to any U.S. presidential election, many businesses choose to put major decisions on hold, waiting to see which candidate is elected and, subsequently, how the global economy will respond.

This year is no exception. Companies are holding off on hiring and other investments until the election is over and the president-elect is inaugurated.

As companies await the upcoming election’s results, here are some of the ways the outcome will affect the global economy and whether businesses proceed with or table significant international expansion initiatives.

Trade Policy and Tariffs

The election outcome could steer U.S. trade policy in different directions, impacting tariffs and trade relations with key regions like Asia, the EU, and Latin America. For instance, changes to trade agreements or tariffs might directly affect sectors like tech, manufacturing, and agriculture. Businesses could see either a more open approach to free trade or a push for protectionist policies, impacting global supply chains and pricing.

Investment in Renewable Energy

Policies on renewable energy and environmental standards could impact energy industries and related sectors. If the incoming administration supports clean energy, there may be incentives for international investments in renewable projects, benefiting companies in green tech and clean energy industries. Conversely, a more fossil-fuel-friendly administration might focus on traditional energy resources, influencing business strategies in energy-dependent sectors.

Corporate Taxes and Regulations

U.S. tax policies can affect multinational corporations, especially those headquartered in the U.S. or heavily invested in the country. A shift toward higher corporate taxes or tighter regulations could prompt companies to consider relocating or restructuring. Conversely, lower taxes and reduced regulations could make the U.S. more attractive for business expansion and global investment.

Geopolitical Relations

Foreign policy shifts influence global business climates, particularly regarding China, Russia, the EU, and other key regions. A move towards friendlier ties with certain nations may lead to more favorable trade conditions, while increased tension could create challenges, particularly for industries like technology, manufacturing, and pharmaceuticals, which rely on international collaboration and markets.

Innovation and Technology Regulations

Different regulatory approaches toward emerging technologies, such as AI, data privacy, and 5G, will affect global tech companies – something tech CEOs are starkly aware of. More restrictive data policies, for example, could influence how businesses handle customer data across borders, while supportive stances might foster international tech collaborations and expansion.

Businesses aiming for international growth often closely monitor these election outcomes and adjust their strategies, accordingly, preparing for changes that might impact operational, financial, and strategic planning on a global scale. It’s widely expected that the election outcome won’t be known for days after November 5, so businesses may need to hold tight for a little longer while the dust settles.

Regardless of the outcome, there will be an array of factors to consider surrounding international assignments for the foreseeable future. If your company needs assistance making sense of the post-election landscape, we can help. Hilldrup specializes in navigating shifting and emerging factors that can impact international relocation plans.

John Warlick Author