For Wendy Lewis

It is recommended for Ferrer Furniture to go global and expand to Germany. As stated in pervious discussions, it is evident that the greater growth of the world demand for low-end furniture has supported the exports of those countries that have a competitive advantage on the cost side. In this structural revolution, however, the German industry has been able to keep itself on a path of growth, up to steadily exceed, since 2015, the 4 billion euro of exports. In particular, the German industry succeeded in intercepting the growth of high-end world demand, which, although at lower rates than the low-end ones, nevertheless increased significantly during this century (Armstrong, et al, 2015).

The benefits of going global are vast and impacts the marketplace as a whole in many ways, but to name a few let us take a look at market efficiency, wealth equality, corporative connections, and technology advancements.

Market efficiency in the U.S is and has always been centered on supply and demand. However, global markets allow for many economies to grow (Kuepper, 2018). The premise is, that when one economy grows it spurs growth in all the other economies that are connected to it. This allows for success across the world, even if the success is most profound in one sector of the world. Moreover, these efficient markets lead to the next benefit which is wealth equality.

Wealth equality is multifaceted. When globalization leads to wealth equality, it creates new jobs, improves infrastructures, and allows more people to live at a higher global level. Ferrer Furniture has a chance to take part in making the world a better and easier place to live, and not just in the U.S (Kuepper, 2018).

When companies expand into the global market, they are also allowed to build connections and growth possibility. Globalization in many cases leads to beneficial partnerships between businesses and even countries. Organization can grow in the opposing country and vice versa. It’s almost like the coined statement “friends with benefits.”

Before starting this course, I didn’t have the best idea as to what the courses direction would be. I assumed something quite different. I have always believed that globalization was a key factor to economic growth. Thusly, my opinion on globalization has not changed. However, my perspective on expansion to other international location besides China has. Living and purchasing good within the U.S it seems like there is no other global import or export than China. Everything one seems to buy now days says, “Made in China.” So, I was extremely surprised to see that Germany was a great place to expand for purpose of this assignment. I was also surprised at the idea of corporative strategies. It seemed to be very smart-minded, to expand but to build the connection and partner with our global partner is a great competitive strategy.