Final answer:
The primary argument for U.S. companies to 'go global' is based on the premise that 75% of the market potential exists outside of the U.S. The rising export/GDP ratio underlines the global trend towards increased trade, with smaller economies needing international trade for division of labor benefits. The U.S.'s large internal market results in a lower export ratio but doesn't diminish the importance of the global market for growth.
Step-by-step explanation:
The student's question relates to why U.S. companies need to consider global expansion. The core argument is that the U.S. is the largest single market in the world in terms of national income, representing about 25% of the global market, which implies that U.S. companies looking to reach their maximum growth potential should expand internationally to tap into the remaining 75% of the global market that is outside the U.S. This is emphasized by observations indicating that the export/GDP ratio globally and for the U.S. has risen over time. However, the proportion of U.S. exports is lower than the global average due to the ability of the large U.S. economy to maintain more of the division of labor within its own borders. Smaller economies with a higher need for international trade to realize benefits from the division of labor and economies of scale contrast with this. It is also noted that the U.S. economy is large and inherently less affected by globalization compared to other countries, but this does not negate the incentives for U.S. companies to engage in global markets.