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Name: Institution: Course: Date: How Does the World Economy Affect Businesses? The rise of globalization is influencing the world to become a small community. Therefore, many businesses range from large scale to small scale have been subjected to either opportunities or threats that result from globalization. In many firms, the global forces have influenced and defined how they interact with clients and how they respond to external factors such as competitions. The global forces that influence an organization operation system include business culture, religious fundamentalism and advancement in the technology. Today, almost every nation in the global is affected by what occurs in other countries (Thomas, and Snell, 82). Many factors impact the global economy such as political events and the downfall of powerful popular currencies of the world. However, the most relevant factor that increases the countries interdependence on each other is based on the nature of trade and production of goods or service they have in place. In the United States, the act of trading with other nations is rapidly changing and growing many sectors of the economy. For instance, the capacity of products and service imported from other countries by various United States businesspeople, consumers or government have increased instantly. Additionally, the level of exports in the United State`s goods such as internet services, machinery products, and motor vehicles have also increased. The concept of international trade has it's own merit because various countries benefited from the presence of available goods, reduced cost of production, a decrease in commodities price and increased the
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