25 Reasons Trump Ban is a Problem for Technology Companies


25 Reasons Trump Ban is a Problem for Technology Companies 

Donald Trump signed an Order banning immigration from seven countries that have a high Muslim population. The ban will stay in force for at least 90 days. Additionally, his order bans refugees for at least 120 days.

The ban will undoubtedly have an effect on different industries. These will include tech companies. Here are the ways it will affect them:

1.  Google was forced to recall its employees who were abroad due to fears that the ban would affect them in a negative way.

2.  The United States will face a shortage of 220, 000 STEM workers by 2018, which cannot be fulfilled by U.S. education system. They need immigrants to fill in this gap.

3.  76% of all patents awarded to leading patent-producing universities in the United States had at least one person of foreign origin.

4.  In the decade starting in 1990, immigrants to the United States contributed to the GPD growth of the U.S. by 2.4%. A good amount of this growth was in the tech industry.

5.  The H-1B visa denials of 2007-2008, caused the job growth for US- born workers to slow down by at least 55% between 2008-2010. It is expected that if Trump extends the reach of his ban, it could have a similar effect on the tech industry.

6.  A quarter of all tech-related companies claims they face difficulty hiring people with the right skills set in the country. The ban will make the problem worse.

7.  STEM students of foreign origin who join tech companies in America complement the workforce but do not displace workers born in the United States.

8.  It will create uncertainty for existing tech company employees. The result may be that they will have reduced productivity due to fear of the unknown.

9.  The ban could make it hard for them to penetrate foreign markets of the affected countries due to lack of goodwill. It is especially so if the governments of these countries and their allies take this as the beginning of an onslaught against them.

10.  The ban could scare people from working for the U.S. tech industry because of a lack of job certainty in the future. The tech industry desperately needs qualified, skilled workers from foreign countries.

11.  It could have an adverse effect on the value of tech companies since a good number of them rely on foreign-born immigrant for innovation. There have already been some negative effects on the value of the largest tech companies in the U.S. If Trump takes any further measures such as reviewing the H-1B program, it could lower the value of tech firms in the country drastically.

12.  It could cause some of the tech companies to lose business in countries that decide to enforce countermeasures because of the ban.

13.  The ban could be a first step in what seems to be Trump’s protectionist policies against foreign workers. Thus companies may have a hard time accessing the top minds in the world.

14.  It will make it hard for foreign-born business leaders from some of these countries around the world to traverse the world and make deals that could be crucial to their success.

15.   It could cut down projected growth figures for the tech industry as they rely heavily on immigrants for growth.

16.  Trump’s ban could signal that he is unwilling to provide policies that are friendly to the tech industry if there was ever a need for that. Thus, investors will have to think of taking their money elsewhere.

17.  The ban could cause a backlash against U.S. tech companies looking for partners in areas of research and development.

18.  It could be bad for tech companies that depend on foreign partnerships for manufacturing of various components. Governments in these nations could form policies that make it hard for them to benefit.

19.  Tech companies could find it hard to navigate the area of intellectual property rights in countries that feel slighted by this ban.

20.  It could make negotiations on internet security quite difficult for U.S. tech companies due to lack of good will from countries affected by the ban and their allies.

21.  Companies of countries affected by the ban may refuse to sign any deals with U.S. tech companies due to the uncertainty the ban creates.

22.  Other countries which oppose the ban could take measures against U.S. businesses, which will also have an effect on tech companies.

23.  The ban could affect other companies related to the technology industry such as car manufacturing. The result could be that tech companies have fewer business opportunities.

24.  The ban by Trump could make global expansion plans by tech companies difficult. As a result, their investors may be unwilling to provide them with any more money for R&D, which is the driving force of all tech companies in the United States.

25.  The ban could make the U.S. tech industry unsuitable for the brightest brains around the world. The result will be that other tech companies around the world will find it easier to attract bright minds. Hence, the U.S. tech industry may become uncompetitive.