Chapter 4. International Economic Indicators: Why Are They So Important?

U.S. economic indicators help us understand what is happening in the domestic economy. However, being a successful investor or an effective corporate leader in today's highly integrated global economy requires a knowledge of what is going on beyond U.S. borders too. A CEO who wants to sell products overseas or an investor who seeks to achieve higher returns on stocks and bonds should be familiar with indicators that gauge the health of foreign economies.

Why place so much emphasis on the international business climate? For one, the performance of U.S. corporate profits, stocks and bonds, and the dollar is affected by foreign developments more than ever before. A recession ...

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