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Study: 'Highly International' Companies Have Higher Profit Margins

Study: ‘Highly International’ Companies Have Higher Profit Margins


Midwestern companies with a global focus tend to have higher profit margins than businesses that don’t sell or operate much outside the country, a new study shows.

According to HSBC Bank’s new report, “highly international” Midwestern businesses had an average profit margin of 9 percent between 2007 and 2012. Those that were “less international” had a profit margin of approximately 3 percent.

What’s more, the highly international companies never dipped below 7 percent profit during the recession.

“The report clearly shows that a diversified geographic customer base or operations have an impact on business performance,” said Steve Trepiccione, a senior vice president at HSBC.

“Highly international Midwestern companies were able to insulate themselves from domestic market fluctuations throughout the past six years and remain consistently profitable.”

James Hart

Written by

James Hart is a freelance writer based in Kansas City.

Categories: Exporting, News Updates


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