Many businesses across the U.S do not take part in global trade for many reasons. Some may say “why trade globally when I do just fine in the U.S?” Smaller businesses in the U.S. do not feel the need to trade globally when their business is successful in the U.S. Global trade involves steps of strategy in reaching global markets such as exporting and contract manufacturing. The U.S. Department of Commerce created Export Assistance Centers to provide hands-on exporting assistance to small and medium size businesses. Contract manufacturing helps companies to test a new market without incurring heavy start-up costs such as new office space. Retail space in foreign countries is expensive because there is less space per person than there is in the U.S. When expanding a business to foreign countries, international personnel are needed to operate the stores. It may be hard the find the right international personnel to manage the business. The international personnel is needed to manage currency fluctuations and use supply and demand to make the most profit.
It is important that the U.S continues to export goods and create more global trade. Exporting for the U.S. is a tremendous boost to the U.S. economy. For every 1 billion dollars in U.S. exports, it generates 25,000 jobs at home. The internet is the greatest source for global expansion. The internet makes global markets instantly accessible. There are more than 600 million people worldwide that have access to the internet which creates great opportunities. Issues such as the exchange rate may keep people from entering global trade. The U.S currency is considered the world’s most stable currency. International trade fluctuates, one U.S dollar may be equal to eight pesos one day and seven pe ...