Globalization is not new; rather it has become a necessary element of sustained growth. What is important is how a company is planning to participate in a process which has become increasingly important for a business to thrive and grow in a balanced, sustained and strategic manner.
Although some companies in North America derive meaningful revenues and earnings from vigorous global export programs and major direct investments, the vast majority of North American businesses derive only a less than optimal percentage of revenues and earnings from international sources, usually limited to exports. This is in stark contrast to what companies in other regions of the world are doing in global initiatives.
Further, the growth prospects for most businesses in North America will probably become more moderate over time. With more modest domestic growth, companies will find it difficult to continue to increase revenues at historical rates. One solution to creating value is to make global initiatives a more meaningful portion of future planning and earnings performance. This diversification also helps to reduce the risk associated with single market strategies.
The United States remains the largest economy in the world. For companies headquartered outside of the United States, this market offers many opportunities for favorable returns on investment and a diversified global presence.
Global Strategy Design LLC’s® purpose is to create value through expanding the international presence of its Clients.