Impact of Trade Wars on Businesses

At the global level, what is one major effect of trade wars?

• Higher productivity across industries

• Stronger cooperation between trading nations

• Disruption of global supply chains

• Reduced inflation

How do tariffs usually affect the cost of living in importing countries?

• They reduce living costs

• They increase inflation

• They make wages rise faster

• They stabilize prices permanently

What could prolonged trade tensions mean for ASEAN economies like Malaysia?

• Higher foreign direct investment (FDI) inflows

• Complete elimination of trade barriers

• Stable exchange rates without risks

• Less competition in domestic markets

Which sector in Malaysia is most vulnerable to trade wars?

• Tourism

• Electronics & E&E exports

• Agriculture

• Construction

What is one risk to businesses in a trade war?

• Easier access to raw materials

• Stable technology supply

• Restricted access to components & technology

• Reduced competition

How could trade wars shift supply chains?

• From ASEAN to Europe

• From China to ASEAN

• From Malaysia to the U.S.

• From ASEAN to the Middle East

How would tariffs on Malaysian exports to the U.S. affect Panasonic?

• Make Panasonic products cheaper in the U.S.

• Increase Panasonic's production competitiveness

• Increase Panasonic's export prices, reducing competitiveness

• Have no effect on Panasonic's operations

If imported inputs become more expensive due to tariffs, firms should focus on:

• Ignoring the cost changes

• Managing cost efficiency

• Cutting R&D budgets entirely

• Relocating only sales teams

How can Panasonic reduce tariff exposure?

• Limiting exports

• Using its global production footprint

• Shifting all operations to Malaysia

• Reducing employee wages only

Beyond production and pricing, what strategic adaptation could Panasonic consider?

• Maintaining 'business as usual'

• Expanding only in U.S. markets

• Re-evaluating R&D, partnerships, and market focus

• Ignoring government policy changes