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American Companies Are Good For Business

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Introduction:
As our world becomes increasingly interconnected, American companies have been expanding their businesses overseas, seeking new markets and new investment opportunities. These companies are seeking countries with a high GDP, strategic location, and a growing urban middle class. GDP, or gross domestic product, is the sum of value added by resident firms, households, and governments operating in an economy (Peng, 2016, pg. 5). Since GDP is an important measure of economic growth, nations with high GDP are seen as desirable markets in which to expand by companies seeking to grow their business overseas. These companies are also seeking countries with an accessible and advantageous location, as strategic location is imperative to facilitate ease in trading. Countries with a convenient location relative to the United States are good for business because of the low costs of transporting goods and because proximity between trade partners has the potential to stimulate trade. Lastly, a growing urban middle class typically equates with a growing economy. Historically, the middle class successfully amasses the most capital, be it physical (such as property) or human (such as education). This accumulation of resources by the middle class then increases the country’s overall GDP (Pezzini, 2012, OECD). A large urban middle class is also indicative of a politically stable country, since the majority of people have access to the goods and services they need and are thus less

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