The United States’ economy has always been intertwined with the connectedness of global markets. But recently, the rise of international stock markets has highlighted the number of connections and relationships that determine the economic growth of the U.S. economy.
The performance of these international stock markets often affects the confidence of U.S. investors and trade dynamics. As the United States currently holds the title for one of the world’s largest economies, it is prone to fluctuations in regards to its external markets.
“In today’s world, we have globalized to such an extent that actions have global effects. Now, there are businesses with the thought of taking it and selling things in different countries, under the name of born global companies,” stated business teacher Janene Murphy.
Born global companies are exactly what they sound like: companies whose purpose is to sell products on a global scale. These companies will create products or offer services that are of high use to many developing countries, and therefore maximize profits as more people are willing to seek these goods and services in order to grow themselves.
Recently, India’s economy has been booming as many foreign investors turn to India as “the Next Big Thing.” The result of this would be the rise of many new start-up companies as well as new branches of already existing billion dollar companies opening up in India.
“Many investors may think of coming to other countries like India for the number of opportunities it provides to upcoming businesses. Doing so allows businesses to earn higher profit margins than in the U.S.,” Murphy explained.
The reason for this trend is due to the large gap in interest rates between the United States of America and India. This prompts many investors to seek international methods of investing to maximize their returns, which results with the rise in India’s stock market from international investors.
This is shown in India’s stock market as well since the benchmark index of the 30 largest companies, Sensex, has reported to have increased a total of ten percent in just three months. Additionally, the index that tracks the growth of the 50 largest companies in India, Nifty 50, has increased 11 percent in the same time.
Avid investor and junior Abhinav Anthati reflected on the opportunities that India presents. “I think India has the potential to be a very big market for many investors. It already has started its growth from Sensex and Nifty 50 but that is just the beginning,” Anthati shared.
