Page 21 - Business Principles and Management

Unit 1

Impact of Global Competition on Business

For hundreds of years, American businesses led the way in producing new goods
and services for sale around the world. Consumers worldwide eagerly purchased
exciting new products that were invented and made in the United States. Factories
hummed with activity, workers from other countries arrived by the thousands to
find jobs, and people spent their wages buying the goods that the firms produced.
Many businesspeople and government leaders from foreign countries also arrived
to find out how American businesses were managed.
During the past half-century, however, other countries
have become more industrialized and have learned how to
business note invent and produce new products for consumers. Often the
products were cheaper than similar products produced in
the United States and, over time, many of the products
were judged to be of equal or better quality. Americans
gradually began to purchase these foreign products.
Learning a foreign language offers an im- Foreign companies learned to produce innovative de-
portant career advantage. Most companies signs for products ranging from cell phones to MP3 players
that compete in the global economy prefer and flat-screen televisions. American business leaders soon
employees who understand other cultures realized it was time for change. They had to find ways to
and can communicate comfortably in their use the abundant resources of the United States and the
customers’ language. Use the Internet to human talent of their managers and employees to meet the
identify the languages spoken by the most challenge of global competition. Global competition is
people around the world. If you chose to the ability of businesses from one country to compete with
learn a second language to help you with similar businesses in other countries. One of the biggest
an international business career, which one challenges facing American businesses today is competing
would you choose and why?
in the global economy.

CHECKPOINT

Identify two major types of changes that present challenges to
business.

PHOTO: © DIGITAL VISION.

In what types of consumer
goods does the U.S. face seri-
ous global competition?

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