“We must ensure that the global market is embedded in broadly shared values and practices that reflect global social needs, and that all the world’s people share the benefits of globalization.” – Kofi Annan
As international markets evolve, businesses are taking advantage of the changing environment to carve their own niche. International business allows companies to offset negative growth in one market by operating successfully in another. Introducing unique products in new territories not only increases sales, but also establishes global presence. As per a survey by the United States Small Business Administration, about 96% of the world’s consumers reside outside America. So, U.S. companies that delve into international business are positioned to enjoy increased profit potential from a larger customer base. For example, although The Netherland’s transportation infrastructure initially attracted Nike to set up an office in Hilversum, it ultimately served as a trigger for the company to refuel its global investment to gain access to millions of non-U.S. consumers. Today, the company has its centralised base in Hilversum for operations in Europe, Middle East & Africa. In fact, the 2016 International Business Indicator released by Wells Fargo stated that 87% of U.S. companies agree that international expansion is required for long-term growth, since taking advantage of global opportunities hedges the risk of decline in domestic markets.