Interdependent Markets

First of all, Welcome Page has explained core values of Innovative and Creative Management Concepts. A market is not alone for international trade activities. U.S. market has connected to markets in Europe, Middle East, Asia and others. American investors have also diversified their overseas investment portfolios in Asian and other markets. American consumers also buy import goods and services from foreign companies. From such senses, today’s markets have become more interdependent on one another. 

A company may limit its market to a city, town, province, region, nation and foreign markets; but employees who are hired may buy products and goods from foreign companies or travel to foreign countries. Most of U.S. banks, Japan banks, and U.K banks have their shares in worldwide markets. That was a reason of domino-effect chains in the 2008 financial crisis. If China’s manufacturing factories use made-in-Japan components for new iPhone and iPad, the former will need a consistent supply chain from Japanese suppliers. Wal-Mart retailers need made-in-China merchandises to sell to American consumers; therefore, Chinese suppliers have to ship those orders on time. 

A multinational corporation or small business firm can experience ups and downs when foreign markets are considered interdependent on the former’s market conditions. Vietnam’s fish and shrimp exporters may be impacted on a decline of Japanese consumption under Japan’s economic performance. More products and services are exported to foreign markets to make exporters become interdependent on import markets. If U.S. market receives investment flows from China, Japan and Middle East countries, economic and political conditions in those foreign markets will impact on U.S. financial and stock markets.