Implications Of Globalization Through Technology And What It Means For Businesses
Implications Of Globalization Through Technology And What It Means For Businesses
Globalization is the speedup of movements and exchanges of goods, capitals, human beings, and services all over the world. According to WHO, Globalization can be defined as “the increased interconnectedness and interdependence of people and countries. It is generally understood to include two inter-related elements: the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”
Technology has transformed the way the world does business in different ways, from communication, to marketing, to customer satisfaction and many others. It also reduced the cost of doing business, and these reduced costs have led to a larger scale of business operations all over the world (globalization).
Globalization of business is the transformation in a business from a company that affiliates with only one country to one that operates in many countries. It is the way businesses will reach the world right from where they are. The impact of globalization on business can be grouped into two categories: market and production globalization.
Market globalization is the reduction of barriers to sell products and goods in other countries other than the home country. This change makes it easier for companies to sell products internationally. The lower tariffs and few restriction in crossing borders has also made this easier for businesses to enter into the foreign market. Companies must now consider other cultures when developing their business strategies, to suit other cultures also. They must adjust their strategies, products and marketing messages to make them acceptable in other countries.
Production globalization is the means of getting resources and materials from other countries to gain advantage from different prices in different locations. Some materials may be cheaper in some countries than they are in others. For instance, you can purchase materials for a product like cameras in different countries and then assemble them in another location just to reduce the costs of production. This will lead to getting products at a lower price since the products now cost less to produce.
Globalization has many advantages on business and the world at large, in different areas. It has expanded economies all over the world and also increased cultural exchanges. It has also allowed financial operations and transactions between companies. The most visible impact of globalization are those that directly affect the economy. Globalization has led to a great increase in trade and economic exchanges, and it also has impacts on the financial world.
The increase of economic changes has led to strong global economic growth. It also improved the global enterprise growth that allowed the immediate growth of most technologies and commodities we have today.
Implications Of Globalization Through Technology And What It Means For Businesses
Technology is the major force in the new form of business globalization. It has become a critical competitive method, and revolutionized the global economy. Technology has globalized the world. Globalization has led to the development of new companies, and technology is one of the ways that is making markets advance and more accessible to the world. Technology has helped us to overcome the major obstacles in globalization and international trade, such as communication, lack of common ethical standard, trade barrier, and transportation cost.
With technology, companies have been able to come up with software that allow them reach the world from their office space. It has also helped to foster relationship and effective communication amidst different organizations. Markets have gone global on a rapid scale, as seen in the distribution of goods to foreign countries. As much as technology has helped businesses to go global, there are also disadvantages to it and understanding those limits will help to effectively make use of technology for globalization.
Read Also: Focusing The Power Of Information Technology For Rapid Business Scaling
Business and Brand management effects
Total dependence on globalized resources makes managing businesses more dependent on components that are out of the business’ control. For instance, when a volcano takes place in Iceland and shuts down air and ocean transport operations in Notthern Europe, the impacts are felt all around the world, not just there alone. The advantages of globalized businesses are important for investors, but the risks involved are great, and this may be a major setback. Different brands compete for customers on a global basis, and so their business activities have to be able to attract the attention of customers.
Limited duration of Globalizarion
According to history, globalization periods are short term. For instance, the British government with globalization lasted for 40 years, and America for 30 years, and there is a growing rejection by customers. Two major factors often bring an end to globalization, and these are; economic crises in the economies of the nations that give naval security, and technological disruption, where a new technology is developed to favor their competition.
Implications Of Globalization Through Technology And What It Means For Businesses
The impacts of globalization on business through technology includes the rise of new innovations that allows businesses to reach more audience all over the world. Gone are the days when your customer base only has to be people in your locality. Technology has made it possible to reach the world at the corner of your home. Globalization and technology go hand in hand to impact businesses and organizations. With social media, internet and different online platforms, a business can reach the globe.
Technologies like Artificial Intelligence(AI), Virtual Reality and Augmented Reality, Chatbots and the likes have made it easier for brands to go global. New startups have the world in mind when writing their business plan, and during strategic planning. You cannot reach the world without technology, and technology industries have been working to make new technologies easy to use. The world of technology has made it easier to do business, and we should expect to see more of technological inventions in the years to come.
Hope you enjoy this article?
Share your thoughts in the comment session.
Contact us today for your business consultancy and business advisory services. We can help you fine tune your idea, structure your business, market your business, train your staff, consult on your retirement plan, coach you for financial success. We also write business plan and help with fund raising strategies and Grant applications. We can help you start, grow and expand your business.
Call or WhatsApp us now on 081 0563 6015, 080 7635 9735, 08113205312 or send email to dayohub@gmail.com and we will solve any of your business problem.
Related