KFC, Pizza Hut & Taco Bell sales in China have plunged after the shunning of US brands by Chinese consumers

Yum! Brands, an owner of KFC, Pizza Hut and Taco Bell, is planning to sell off restaurant chains in China after the profound shunning of US brands by Chinese consumers as a response to the conflict around the South China Sea contested islands.

The United States external policy has commited multiple slip ups during Obama’s presidency. Recently, the President of the Philippines has refused participation of joint military exercises with the US on the grounds that relations with China are of higher priority.

This example illustrates how external policy faults can impact the national economy.