This LA Times article nicely sums up many of the reasons why globalization has been good for US businesses, that is, those US businesses who take full advantage of globalization. Here’s an excerpt:
Take General Electric Co., where rising profit from foreign operations pushed overall earnings up 25% in the first quarter. And last week Caterpillar Inc. in construction equipment, Intel Corp. in computer chips and EBay Inc. with an enormous rise in international auction trading all reported sharply higher earnings thanks to global growth.
Indeed, a quarter of all U.S. corporate profits, or about $225 billion, were earned outside the United States last year, according to the federal Bureau of Economic Analysis.
GE was a pioneer in embracing global markets (although its global Web site could use some improvement). And eBay is betting big on emerging markets like China, Poland, and (I predict) Russia by the end of this year.
By this time next year, companies like eBay, Amazon, and Google could be earning as much (or more) of their revenues from outside the US as they do from inside the US. This is a profound transformation, in which smart and aggressive companies will transform themselves from US companies serving foreign markets to global companies serving local markets. Globalization is good for companies that see it as much of an opportunity as a threat.
2 thoughts on “Globalization is Good”
Recently, a number of scientists were asked, “What do you believe in that can’t be proven?” Your title reminded me of that question. It also had the whiff of a true believer to it.
I would be curious to read an article by you that was titled Globaliation is Bad. It might be more instructive for all of us, including yourself.
I am not trying to be snide about this. Tell us what is wrong with Globalization.
1. ebay in poland has so far been a disaster.
2. generally speaking, you could say globalization is good for u.s. companies. the big ones. the ones that can come and win a market over. and that is precisely the problem with globalization. it is not a win-win situation. because nobody really cares about the local market. this is why this sort of globalization is called imperialist by so many people.
3. there are other models of globalization. other ways of doing business while doing good. pity in all your “business talk” you take so much care as to not look up.
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