How Did John Deere Affect China
Even for countries for which trade with China is a small blip on their gross national products (GDPs), the domino effect of falling demand will hit individual companies that have direct or indirect exposure to China. Some companies that sell products in China, such as Apple and Microsoft, are more directly exposed.
Other companies are indirectly exposed, but with a potentially severe impact. For example, John Deere sells farm equipment to countries in South America that have relied heavily on agricultural exports to China. When China's demand for imports decreases, the demand for farm equipment will decrease. This will impact John Deere’s profits, which will ultimately impact the U.S. economy.
Other companies are indirectly exposed, but with a potentially severe impact. For example, John Deere sells farm equipment to countries in South America that have relied heavily on agricultural exports to China. When China's demand for imports decreases, the demand for farm equipment will decrease. This will impact John Deere’s profits, which will ultimately impact the U.S. economy.