Cramer's 'Mad Money' Recap: Companies Should Go Abroad for Growth

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With American consumers strapped for cash, investors need to look at companies that are tapping into international markets, Jim Cramer told viewers on his "Mad Money" TV show Monday. Companies that think they need the American consumer should worry, Cramer said.

Best Buy (BBY Quote) has left Circuit City (CC Quote) in the dust. Whereas Circuit City blamed recent poor performance on the weak American consumer, Best Buy is focused on an international customer base.

Companies should recognize that the U.S. is no longer a growth nation, Cramer said. Amidst complaints about the weak dollar, Best Buy recognizes that selling to Canadian consumers now translates to more profits back home.

With a huge international growth rate -- foreign sales were up 50% last year -- Best Buy is showing vision in the face of a U.S. economy that has trouble growing. By expanding into China and Mexico, Best Buy is providing for more success as these countries begin to spend more money.

Meanwhile, Circuit City's international business is shrinking. The company eliminated its most expensive sales associates, who Cramer pointed out are also the helpful ones. By eliminating helpful staff instead of searching for new revenues, "Circuit City is shrinking itself out of business."

Like Best Buy, Carnival Cruise Lines (CCL Quote) is outperforming competitors by seeking customers where the economy is exciting.

Cruise companies will win or lose based on their ability to transfer their services to a richer Europe. With 30% of its sales coming from outside America and with the largest cruise fleet in Europe, Carnival Cruise recognizes the need for an international presence.

Moreover, Europe's cruise passenger count increases 10% annually, whereas America's rate of passenger increase is closer to 5% per year, Cramer said. Carnival Cruise has taken notice, projecting that 40% of its fleet should be European by 2010. Its closest competitor, Royal Caribbean (RCL Quote), only devotes 10% of its fleet to Europe.

"Carnival is making Royal Carribean looking like the S. S. Minnow," Cramer said.