Over the past 60 years, the United States has consistently been the key contributor to world economic growth and welfare. In the 1940s, its leadership created the World Bank, the International Monetary Fund and the General Agreement on Tariffs and Trade – now the World Trade Organization. These three pillars reduce global poverty, support financial flows and set fair rules for all participants in international trade. In the 1970s, U.S. courage and conviction led the move from gold-related fixed exchange rates to floating ones. The shift allowed the money supply to grow and gave rise to world economic abundance.
The United States has continued to set an example for the world of how market-based actions consistently produce very efficient and effective results. For decades, the country has been the locomotive, absorbing growing foreign production within a large and wealthy domestic market. Of course there have been missteps – as one would expect to encounter with any pioneering efforts – but the U.S. approach has worked better than any others when it comes to economic improvement.
There is no reason to lose heart due to temporary setbacks. The United States continues to present new and special opportunities to the world. It offers the security and safety that have sadly been unattainable for most people on early. It presents a vision, flexibility and capability to adjust to new conditions which are envied around the globe.
This is a preview of my new book, Global Business: Positioning Ventures Ahead to appear with Taylor and Francis in early 2011. I will be posting little snippets from the book every once in a while. I encourage you to read, comment, share, and your thoughts to the comment section. And look for the book in June.
As we write this, governments worldwide are working to counteract the 2009 economic crisis by developing stimulus plans. The efforts of any one nation will have an impact globally because national economies are intertwined, but economic activity is highly concentrated among a few players – the U.S., European Union, Japan, China and Canada – who account for more than 75 percent of the world’s economy. That clout makes it critical for U.S. companies to become more involved in international marketing, whether it is export-import trade, licensing, joint ventures, wholly-owned subsidiaries, turnkey operations, or management contracts.
Please Comment: Do you think the protectionist measures that are being enacted as a part of the stimulus plans will help or hurt domestic economic recovery? What is the best way for governments to react to the recession? Do you think that a global outlook is key to recovery?