Will Nations Not Supporting the War Pay a Financial Price for Their Non-Support?

First, it was the Canadians saying that they were being boycotted by U.S. businesses for not supporting the Iraqi War. Now, the Germans are saying they fear the same thing. In this case, German companies are worried they might be precluded or overlooked as contractors for the cleanup effort in Iraq after the war. Thus far, the Germans report they are aware of only a few instances where German companies have been slighted by American companies, but some concern remains about this issue.

This is indeed a delicate issue for U.S. business and government officials.

What does this issue mean to the economic development community? Should we discourage foreign direct investment from those nations that did not support the war effort? That would include all but the U.K. and Australia. Should we discourage trade development with these international markets? Can you think of an economic developer who would turn away a new Mercedes Benz plant?

On the surface, I see major problems with isolationism and removing ourselves from the global economy. One could argue that such withdrawal could injure U.S. consumers and businesses over the long run by limiting the selection products and services we buy. Can we trust American companies to hold the line on prices in exchange for a Buy American policy? I will leave that question to you to answer for yourselves.

Is it likely that some U.S. companies supportive of the war effort will use this as an opportunity to send a message to their foreign suppliers for not supporting the war? I think that is entirely possible. My question is how long will they beat that drum.

What are companies in your community saying about this issue?

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