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America's Currency Rates Affecting The US Economy

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The world’s largest economy, the United States, is a major player in the international economic system. If U.S. economy declines, it will affect international finance. Because most international transactions are made in US dollar and The United State is the largest trading country, they play a major role in world export and import (World Financial Watch, 2013). If US dollar’s currency rate increases, it will affect our country’s economy negatively because price of products and services will increase and customers’ buying ability will decrease. Regarding our company, we import our products from America. If U.S. economy declines, the price of imported products will increase. We will not be able to compete against our rival so we have already decided to pursue product differentiation strategy. Even if U.S. economy declines it will not affect the consumption …show more content…

To operate international business, top managers in a company have to learn global strategy and implement them. A new company can use strategy of the host company such as partnerships with other countries, acquiring companies in other countries and owning franchises and patents of other countries (World Financial Watch, 2013). Companies definitely encounter global competition and market changes. Who will survive in such a market? The companies, which select a global supply chain and vendors and monitor threats in the market place, will operate successfully and gain competitive advantage (Wisma, 2013). Starbucks has many competitors but they have created their own culture, value, and brand. Today Starbucks has 20,891 stores in 62 countries. Corporation revenue is $14.89 billion and they have 160,000 employees. The company is the largest coffeehouse company in the world (Starbucks, 2014). Starbuck is a global leading company. Therefore our company in Mongolia will lead by strategic management like Starbucks

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