Why should U.S. businesses engage in international trade through exporting?
If you’re only selling your products in the U.S., you’re only reaching a small share of your potential customers, because 95 percent of the world’s consumers live outside of the U.S. Following are some of the benefits your business could reap from exporting: • Increased sales and profits. If your business is succeeding in the U.S., expanding overseas will likely improve overall profitability. Furthermore, increased sales tend to increase productivity by lowering your per-unit fixed costs. • Short-term security. By expanding into international markets and spreading your risk over a wider customer base, your business will be less affected by fluctuations in the U.S. economy and marketplace. In addition, by exporting, you gain a better understanding of global markets, which means you’re more attuned to developing trends overseas and will be more likely to cash in on those trends, increasing your competitiveness. • Long-term security. The U.S. is a large market with a wealth of opportunity
