Global Environment

Thousands of companies compete in the global environment. Some of the most prominent global companies are Exxon Mobil, Microsoft, Nestle, Honda, Coca-Cola, Anheuser-Busch InBev, and HSBC. These companies all operate in different industries, and many are based outside of the United States. For companies, operating in the global environment gives them access to a wide range of customers, providing not only growth opportunities but geographic diversification. Global presence can also help a company to attract top talent from around the world, giving it further competitive advantage over companies that are not global in nature. For consumers, global companies often offer a mix of global and local products, providing variety but also product consistency. Shareholders benefit from the diversification and sources of growth.

Exchange rates between nations are directly affected by the differential interest rates. The value of money changes at different rates in different countries, and these changes...
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