Soft power – the link between business and politics?

Abstract

Soft power, a concept created by Joseph Nye, affects the attractiveness of countries internationally. This attractiveness also affects companies, as people can associate the company with the country it originates from. This thesis aims to find out if the soft power wielded by the American Presidents affects American companies financial results, especially internationally. The soft power concept is discussed from the perspective of a brand, nation branding, the American presidency, and the soft power brands have at their disposal; but also by looking at the soft power of the current American President Donald Trump and his two predecessors: George W. Bush and Barack Obama. Four American companies’ financial results are examined during the terms of the previously mentioned Presidents and if the changes they have caused to the American soft power has affected the companies’ numbers. According to this research there is no clear correlation between changes in the American soft power and the financial results of an individual American company.