INTRODUCTION As companies and governments look to projections of the future, they would do well to

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INTRODUCTION As companies and governments look to projections of the future, they would do well to realise that acting on their existing strategies may no longer be an effective plan in order for them to grow. Because of financial, technological, and labor developments overseas with other companies, it is expected that domestic businesses would excel financially if they outsourced jobs or partnered with companies abroad. While some Americans prefer to keep business ventures in the states for domestic employment level reasons, companies should look to international enterprises to remain profitable. Domestic economic growth is slowing, Western companies are beginning to see competition, and rapid communications are allowing customers…show more content…
All of this contributes to negative growth in the economy, and then again in those companies. It is a cycle. With the slow growth of the GDP, the entire US economy does worse. It means US companies have fewer opportunities to grow. Companies must think harder about the opportunities and risks that are being presented by evolving trends, and especially their driving forces. II American companies are also beginning to see competition from counter-companies providing similar goods and services in other developing countries. As expected, companies based in developing market economies often have lower labor costs as well as lower production costs; they therefore pose a threat to the Western firms that are more expensive to run. These companies with low costs challenge Western businesses to keep foraging ahead with faster and more effective innovations in technology. Migrating job costs to lower-cost countries used to be just an idea, until recent years. It is now an imperative for most industrial companies if they want to prosper and stay in the market. Companies looking to migrate costs need to decide which suppliers to migrate from high-cost countries such as United States and almost any country in Europe, to low-cost countries such as China, Mexico, or Hungary. While making the shift from domestic
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