The Trump administration is attempting to lower imports in order to rebalance trade after decades of U.S. neglect toward economic relationships around the world. Rebalancing should not only be done by applying the stick of import reductions, but also by export promotion.
Exports make a firm’s markets grow and change its home nation’s currency value. When U.S. exports increase, the dollar typically goes up in value.Shrinking exports tend to weaken the dollar. Exports also shape public opinion of globalization and offer the opportunity for economies of scale.Higher production volume often means a lower cost of production.Since high exports also make imports cheaper, a firm may achieve lower costs and higher profits, both at home and abroad, through exports.
Instead of widening the girth of the four business pillars, we should consider to connect them all with a seat which improves comfort and reach. It may be time to combine the doctrine of capitalism with the insights of wisdom and philosophy. We believe the connection represents the soul of business.
I. Innovation Disruption and the Imperative of Curative Marketing
More than 7 decades ago, Joseph Schumpeter regaled us with the concept of creative disruption. He presented successful innovation as only temporary market power, threatening the profits of old firms, yet facing the pressure of new competitors beginning to commercialize their own inventions. Such cyclicality was taken on in greater detail by various subfields in business and society and delivered high explanatory value. Consider the “wheel of retailing” which Stanley Hollander described in the late 1950’s with firms starting at the bottom of the wheel and moving up in terms of services and pricing until they are transitioned out from the wheel by more efficient competitors. Today, the disruption has become more broad scoped with new entrants and their disruptions coming not just from the same industry or even from similar business models.
Globalization, trade and investment deserve our ”Thank You” for their achievements. Yes, currently, in Europe and the United States, popular discontent is forcefully expressed. An introvert trend has emerged, fed by nationalism, populism, xenophobia and anti-globalization rhetoric.
Globalization is not new; it has existed for centuries. What is different today is the speed of globalizing the world, made possible by new technologies, transportation networks, media, and international marketing. Many claim that never before in history has there been so much evidence about strong opposition to globalization. However, any comparison with the past is highly inaccurate. Only few records of resistance to globalization have been preserved for us today.
You may ask what freedom has to do with international marketing. Freedom is about options. If there is no alternative, there is no freedom. A true alternative provides the opportunity to make a decision, to exercise virtue. In the blaze of the klieg lights, it is easy to make the “right’’ decision. at is not an exercise in virtue, because real alternatives arr effectively removed. e true selection among alternatives takes place in the darkness of night when nobody is looking.