Globalization is nothing new these days. The speed of shared information in the 21st century has allowed for faster and more expansive rates of globalization now more than ever before. This means big changes in the business world have taken place (and are still taking place). The importance of globalization increases each year, forming a trend that doesn’t appear to be slowing down anytime soon. So is this trend ‘good’ or ‘bad’ for businesses?
Unfortunately, the answer isn’t as simple as just good or bad. It varies vastly on the type of businesses somone considers ‘good’ or ‘bad,’ as well as your particular point of view. Before we delve into its results, let’s talk about the definition of globalization itself first.
What is globalization?
In case you have been living under a rock, globalization is the process of the world going from isolation to integration on a global scale. It is the increasing of cooperation in terms of economics, business, and politics, and it is marked by the sharing of ideas around the world. Globalization is especially enhanced by improving technology that makes sharing information and ideas just one click away.
In terms of business, one specific aspect of globalization is the addition of offshoring or outsourcing. Because of improved technology and the increased availability of workforces located all over the world, work is easily able to be done remotely. This means big savings in cost and increases in quality of companies.
What are the advantages of globalization?
There are a large number of clear advantages that come with globalization. Whether it’s an advantage for a country, for the world, for a company, or for all of the above, here is a comprehensive list for you to understand better how globalization affects businesses.
Trading more freely
One of the best aspects of globalization is the fact that companies from all over the world can trade with one another freely, due to the lifting of restrictions on imports and exports between countries. This was not always the case, however, so it is definitely a relatively recent advantage for companies everywhere.
For businesses, the market of consumers has increased exponentially with globalization. Suddenly businesses are able to tap into markets that didn’t exist for them previousl. They can find customers and consumers from all over the world to enjoy their products, which means a potential for growing as a business.
Because companies from different countries are now competing against each other for a wider common market, the prices are being driven down. This is more of an advantage for the consumers, of course, but in the end aren’t we all consumers anyway?
Increases opportunities for all countries
Nowadays people and companies from every country big or small, rich or poor, have the opportunity to grow. For countries that have lots of one thing but are lacking in another; for instance, a country with lots of oil but not enough farmland this is critical. Now they can export the oil and earn enough money to purchase those same foods they would have grown from other countries.
Freedom of movement
These days it is pretty easy for workers to market their skills abroad and find a job elsewhere than their home country. If there is a skill lack (and there’s always one of some sort in every country), that country can search for foreigners to fill that gap. This makes opportunities greater for the worker and country both.
Globalization and the Internet have led to an easier time of finding companies or people to do the work that you shouldn’t waste your time doing yourself, especially if you are an entrepreneur. This means it’s easier to outsource on any of your extra work, allowing you to save money and time while simultaneously improving your business. Get started now with Sidago.