Companies and industries that don’t participate in the global marketplace must recognize that in today’s trade environment, they will suffer. Willing or unwilling, we all are drawn into global commerce. Even if it doesn’t happen by choice, companies and individuals are affected directly or indirectly by economic and political developments that occur in the international marketplace. It does matter to Americans when the European Central Bank makes interest rate decisions in Frankfurt, or whether Russia and Ukraine have disagreements over the use of gas pipelines. Companies that ignore such events or decline to participate can only react and are unprepared for harsh competition from abroad that can have a profound impact on business success or failure.
Some industries are more progressive about this than others. Farmers, for example, understand the need for high productivity in light of stiff international competition. Computer makers, software firms, and high-technology-related businesses large and small have learned to embrace global relationships so they can stay in the race. Companies in the steel, textile, and leather sectors have shifted production in response to overwhelming onslaughts from abroad. Other industries in some countries have been caught unaware and haven’t adjusted, resulting in failed firms or entire industries such as coal mining and steel smelting in certain countries.
What is the most important thing to which companies today must account for in the realm of international business? Please leave your answer below.
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