The U.S. economy grew at 0.7 percent in the first half of 2011, yet the average company in the S&P 500 is expected to enjoy 17 percent earnings growth by the end of the year. How are these big companies defying the gravity of slow domestic growth? They’re practicing the fine art of exporting to countries where demand for their products is growing faster than in the U.S.
As my co-author, Frank Lavin, and I pointed out in our new book, “Export Now” (Wiley, September 2011), exporting in particular and global trade in general, is politically unpopular. A recent poll shows that 68 percent of the U.S. public believes that “trade restrictions are necessary to protect domestic industries,” and only 24 percent support free trade.