Global business is crucial for several reasons: 1. Market Expansion: Companies can reach a broader customer base by entering new markets. 2. Diversification: By operating in multiple countries, businesses can spread their risk and reduce dependency on a single market. 3. Innovation: Exposure to different cultures and business practices can drive innovation and improve product offerings. 4. Economies of Scale: Operating on a global scale allows companies to achieve cost advantages due to larger production volumes.