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It seems to me that there is a lot of instability on a global level—either politically, socially, or even environmentally (wildfires, floods, etc.). Yet, many businesses think that to be successful, they must have a global presence. Is it wise to try to compete on a global level given all the risks? If businesses do choose to go global, what are some things they can do to manage that risk?

Some businesses need to complete globally in order to be successful, but others do not. It all depends on the specific nature of the business.

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Lynnette Wofford eNotes educator | Certified Educator

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No single formula works for all businesses. Some businesses may thrive in a local market, but others may want to scale up globally. Obviously, a global business has potentially far larger sales than one with a smaller market, but scaling up entails risks and also global competition. Some industries, such video games which exist entirely in the electronic universe, are easier to scale globally than ones which involve goods and services.

Imagine a successful family restaurant. It is doing well serving Indian street food in a small midwestern city. If it stays small, it can survive without taking out loans and with a small payroll. Quality is easily controlled, and the small...

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