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American Business; Helping Grow the Global Economy

Posted on Feb 18, 2014

American Business; Helping Grow the Global Economy

American businesses and business men like Herb Allen are a vital link in the global economic chain. With one of the largest collegiate pools for innovation and entrepreneurship in the world and a class A transportation infrastructure, American businesses are poised to continue contributing to the global economy for the foreseeable future. Energy, technology, manufacturing and retail delivery chains are just some of the areas that American businesses will have an impact on in the global economic situation. The contribution is not limited to these sectors, in fact there are very few sectors American businesses do not add to the global market place.

Real Gross Domestic Product (GDP) in the fourth quarter of 2013 showed an increase of 3.2 percent. While this was lower than the third quarter 4.1 it still represents an significant increase. Real GDP is what is calculated after imports have been subtracted. This growth indicates the robust nature of the role that American businesses play on both domestic and global markets.
This is further reflected in the 2013 fourth quarter export percentage. For a quarter annualized rate of 10 percent, this is one of the highest total export percentages since the 2008 recession. Exports to the EU market and China account for 5.1 percent of the yearly total, and show signs of growing even more as new shipping terminals, especially for LNG come on line. American businesses are also looking to capitalize on several port expansions in anticipation of the Panama Canal expansion. When completed these expansions and canal expansions will place American businesses in a excellent position to increase their position in the global economy.

As a player in the worlds largest economy, American businesses have the robust flexibility to adapt from the role of manufacturer to innovator. Recently the CEO Alan Mulally of Ford Motor Company, referred to the company saying; “Ford is a technology company.” This illustrates the transition from a company that produces transportation equipment to one that reinvented itself as a technology innovator.

The largest company on the United States Fortune 500 (Number 2 on the Global 500) has recently changed CEO’s. The new CEO of Walmart, Doug Mcmillon was brought on board for the very reason of increasing the exposure of Walmart and Sam’s Club in the global economy. Walmart is focusing on developing its international presence. This directly translates into a larger role and contribution in the global economy for Walmart. With revenues of 469.2 billion in 2013 alone, this contribution is not small by any measure.

American Businesses provide a huge boost to the overall global economy. Not only are these businesses key players in the world’s largest economy, they are global players as well. American businesses have the capability and flexibility and the knowledge to continue to grow the global economy. For sustainable growth in the global market place, American businesses can be counted on to keep doing their part.