According to the Economist Intelligence Unit, an independent business that provides risk and industry analysis for 200 countries across the globe, a Donald Trump presidency is as dangerous to companies' profitability as a situation where "the rising threat of jihadi terrorism destabilizes the global economy." The EIU provides an analysis on how well companies will be able to profit on a global scale if their predictions come to pass.
The EIU predicted that should the Republican frontrunner win the presidency, the potential presidential candidate would be set at a rating of 12, the same rating as jihadi terrorism, and cited the ranking, which uses a 25-point scale, in the April list of top 10 global risks per April 2016. A Trump presidency is ranked higher than the United Kingdom, which the EIU said is one of the fastest-growing economies in Europe, leaving the European Union and a "clash of arms" in the South China Sea due to Chinese expansionism.
Although the EIU wrote in the analysis it does not believe the Republican businessman would defeat former Secretary of State Hillary Clinton, the level of economic threat he poses to the world, according to the organization, is a moderate one. "His militaristic tendencies towards the Middle East (and ban on all Muslim travel to the U.S.) would be a potent recruitment tool for jihadi groups, increasing their threat both within the region and beyond," the analysis stated.
"In the event of a Trump victory, his hostile attitude to free trade, and alienation of Mexico and China in particular, could escalate rapidly into a trade war — and at the least scupper the Trans-Pacific Partnership between the U.S. and 11 other American and Asian states signed in February 2016," the EIU added.
The top risk on the list is a "sharp economic slowdown in China."