World Markets Add Stability

Despite the complexities of currency shifts and cultural differences, a strong international presence enhances corporate stability. Relying solely on a domestic market exposes a company to the volatility of a single economic cycle.

How International Markets Stabilize a Business:

1. Different Economic Cycles: Different regions of the world often have different economic cycles. A recession in the U.S. may be offset by a boom in Japan or Europe. This provides a natural cushion during downturns.
2. Diverse Application Bases: Different regions often have different dominant industries (e.g., consumer electronics in Japan, telecommunications in Europe). Serving these diverse application segments provides stability because their individual economic cycles are not perfectly correlated.

By participating in multiple world markets, a company can smooth out the peaks and valleys of its revenue stream, gaining a significant advantage over purely domestic competitors. This is a key benefit of the strategy to Be International or Fail.