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'Technique in deals’ by Trump and Allen

Posted March. 18, 2017 07:17,   

Updated March. 18, 2017 07:26

한국어

U.S. President Donald Trump visited Korea twice in the late 1990s when he was collaborating with Daewoo Engineering & Construction. He was happy to see "DT" as the company’s brand for commercial-residential buildings by mistaking it as short for Donald Trump but it was actually short for Daewoo-Trump. He would show more interest in female assistants than business at model houses, but a Daewoo official called him "smart guy." This meant that he was ready to take bow and yield when needed at a critical moment, and was not an idiot who would mess up things due to his ideology.

Trump can be mistaken as the kind of person who handles business affairs randomly as he pleases, but he is an entrepreneur who thoroughly plans before taking action. He became the president due to his technique in deals, evidenced by his slogans "predict the worst, don’t make business into a game, and invest an appropriate cost." Even after making provocative remarks such as “I am extremely angry due to what Kim Jong Un did (firing of intermediate range missiles),” and “It is too late to hold dialogue,” he dropped the strategy of a preemptive strike that entails hefty cost due to his technique in deals.

U.S. Federal Reserve Chairwoman Janet Yellen, who was appointed by former President Barack Obama, is a figure who is widely disliked by Trump. Yellen diluted Trump’s economic stimulus policy by raising the benchmark interest rate on Thursday, three months before the predicted timeline. Notably, she made it impossible for Trump administration officials to change the direction of the Fed’s policy going forward by announcing a long-term plan to raise the benchmark rate until the annual rate reaches 3 percent. Yellen thoroughly orchestrated her plan by presenting the Fed’s message of "gradual hikes of interest rate," which confused even experts as to whether the message was meant to cater to the new administration’s expectations or toy President Trump.

While hearing the sensitive question of whether the Fed meeting discussed Trump’s tax cut policy, Yellen had some eyebrows and displayed a sense of determination in her eyes. When she was actually answering the question, she showed smiles and seemed relaxed. She thus effectively implied that Trumpnomics was not a policy for consideration by the Fed. Yellen’s technique in deals, which seems to be superior to that of Trump, may be owing to her husband Prof. George Akerlof, who won the Nobel economics prize with his dissertation that emphasizes the importance of information in transactions. Having been outsmarted by Yellen, Trump will soon display a new technique in deals. The technique could be a currency war or trade barriers. In whichever case, Korea is subject to its influence.