Identifying Opportunities in Economic and Regulatory Trends

Economic Trends Opportunity 1: Strengthening global demands

Where I found it: jpmorganchase.com

What leads me to believe an opportunity might exist: I believe an opportunity might exist here because as the economies of massively populated countries such as China and India expand rapidly, as well as shifting from export-based to service-based, there will be a newfound demand for American goods, particularly luxury goods and technologies abroad as the spending power of the foreign middle and upper-class increases. Another area this demand will be found is in American intellectual properties, which will see increasing use overseas as well.

Most likely customer with the opportunity: The most likely customer in this opportunity would be a newly middle or upper-class person in any number of rapidly developing economies around the world, be they Chinese, Indian, or Brazilian.

Ease of exploitation: This opportunity would not be particularly difficult to exploit. If a company is large enough that there is demand for its products overseas, chances are they already have the infrastructure in place and the funds to facilitate entry into new markets, especially if those appear to be lucrative.

Why I saw this opportunity: I saw this opportunity because I have a vested interest in international relations as a political science major, and a major part of American influence in international relations comes from the ubiquity of American products and intellectual properties. One needs to look no further than the end of the Cold War to see how much of an effect this can have around the world.

Economic Trends Opportunity 2: Increasing energy demands

Where I found it: jpmorganchase.com

What leads me to believe an opportunity might exist: I think there may be an opportunity here because stabilizing oil prices, rising vehicle exports and purchases, and the continued boom of American oil all point to an increasing need and desire for energy sources, of which oil and other fossil fuels continue to be the most prolific.

Most likely customer with the opportunity: The most likely customer with this opportunity would be governments and companies seeking to import American oil abroad. These countries tend to be developed countries in Europe, as well as in other regions of the world lacking in fossil fuel deposits. This customer base extends from the governmental level all the way down to the individual level, as the citizens of said countries will need access to gas for vehicles.

Ease of exploitation: The ease of exploitation in this opportunity is quite variable. If a company already has the infrastructure to extract the oil and the means to export it, then these new demands will be fairly easy to exploit. However, a company just now entering this industry following the American shale boom would find this exceptionally difficult, given the juggernauts that already occupy the field.

Why I saw this opportunity: I saw this opportunity because I have numerous concerns about the environment and sustainability, and am a major proponent of renewable energy sources. Although the above opportunity presents an excellent chance for capital to enter the American economy, I was also quite dismayed, as it does not appear that oil is anywhere near faltering in the face of the increasing prevalence of renewable resources.

Regulatory Changes Opportunity 1: Trump Administration tariffs against allies and trading partners

Where I found it: businessnewsdaily.com

What leads me to believe an opportunity might exist: I think an opportunity may exist here because with the implementation of tariffs on common and important goods that we typically purchase from such countries as Canada, especially resources such as steel and the like, companies within the US will be looking for sources of these and other products that they can acquire without suffering from the penalties of the tariffs. There also may be further opportunity here as many companies take their production and products overseas to avoid the tariffs, opening up new spaces in US markets.

Most likely customer with the opportunity: The most likely customer with this opportunity would be, in the case of tariffs on raw materials, US companies that rely on trade with Canada and the EU to acquire materials to make their products. Another prototypical customer would be the consumers of products that may cease to be produced or sold in the US because of the tariffs.

Ease of exploitation: I think this opportunity would be rather difficult to exploit. Although there is plenty of room now for new companies to expand, these companies would require significant resources to reach the level of those that left, something that may not be worthwhile in the long run seeing as the above tariffs probably will not remain in place once Trump is out of office.

Why I saw this opportunity: I saw this opportunity because I have a significant interest in world politics, being a political science major, and economic and regulatory policies like the above tariffs play a major role in how the US interacts with and is perceived by other countries, particularly those that we are ostensibly allied with.

Regulatory Changes Opportunity 2: EU General Data Protection Regulations

Where I found it: businessnewsdaily.com

What leads me to believe an opportunity might exist: I think an opportunity may exist here because these new regulations will demand an increase in personal data protections for individuals and companies throughout Europe, as well as protections for copyrighted material. It has been suggested that the US might implement similar regulations, and if so, there would be a demand for companies that could facilitate the implementation of such data protections, especially for individuals and small businesses.

Most likely customer with the opportunity: The prototypical customer in this opportunity would be a business that frequently deals with customers' personal data, particularly those in banking and social media, where such leaks have been particularly damaging recently. There may also be individual customers as well, people looking to preserve their data privacy or intellectual property.

Ease of exploitation: This opportunity would be fairly easy to exploit. Although it requires a great degree of knowledge, the actual monetary cost of implementing these protections and the infrastructure necessary to run such a business would be small, with large financial gains to be made.

Why I saw this opportunity: I saw this opportunity because ever since the 2016 election, I have been increasingly concerned with data protection and privacy, and so seeing the implementation of these regulations and the possibility that they may be implemented in the US as well has helped to assuage some of those fears, especially once companies are forced to be more careful with how they handle consumers' data.