Opening an Office Abroad

To be sure, the recession clearly has hurt cross-border business, with the dollar value of global trade falling by nearly one-third between August 2008 and March 2009, although it has since rebounded some, The World Bank reports in “Global Economic Prospects 2010.”

However, globalization marches on, and companies still are expanding abroad. In fact, earnings from the foreign affiliates of U.S.-based companies grew from $63 to $80 billion between the first and third quarters of 2009, reports the U.S. Department of Commerce. The report acknowledges that the increase partly reflects the depreciation of the U.S. dollar, which makes earnings of foreign affiliates relatively higher when compared to domestic earnings. Even so, the report adds that the pickup in activity in some foreign countries also contributed to the uptick in earnings. (more…)