By Michael R. Czinkota
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Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. CHAPTER 1 • Global Environmental Drivers 15 Many firms do not participate in the global market.
One change is the role participants play. For example, the United States accounted for nearly 25 percent of world merchandise exports in the 1950s, but by 2010 this share had declined by two-thirds. Also, the way countries participate in world trade is shifting. 2 shows, while the United States and developed nations have grown their exports more slowly, since 2008 many developing economies have realized dramatic gains in exports. Of course, one needs to consider the base from which this growth has taken place.
Major economic change can be swift and harsh, and its cause may be difficult to identify. An analogy might consist of persons traveling in a giant plastic bubble filled with vital air. Suddenly the bubble begins to shrink, the air escapes, but the passengers don’t find the rupture, nor are they able to replenish the air sufficiently. Rash reaction may lead to mistakes and unintended consequences, but no reaction will lead to a hard landing. Constant rapid technological change and vast advances in communication permit firms and countries to quickly emulate innovation and counteract carefully designed plans.