The global economy impacts businesses in several ways:
1. Market Expansion: Companies can access new markets, leading to increased revenue streams and customer bases. 2. Supply Chain: Global supply chains allow businesses to source materials and services from around the world, often at lower costs. 3. Currency Fluctuations: Changes in exchange rates can affect profitability, especially for businesses involved in international trade. 4. Economic Policies: Tariffs, trade agreements, and regulations in different countries can impact business operations and costs. 5. Competition: Globalization increases competition as businesses compete not only with local firms but also with international companies.