How can globalization affect a business

Table of Contents What is Globalization? What Are the Benefits of Globalization? What Are the Challenges of Globalization?

But those who decide to take on international expansion find several benefits, including: 1. Access to New Cultures Globalization makes it easier than ever to access foreign culture, including food, movies, music, and art. The Spread of Technology and Innovation Many countries around the world remain constantly connected, so knowledge and technological advances travel quickly.

Lower Costs for Products Globalization allows companies to find lower-cost ways to produce their products. Higher Standards of Living Across the Globe Developing nations experience an improved standard of living—thanks to globalization.

Access to New Markets Businesses gain a great deal from globalization, including new customers and diverse revenue streams. Access to New Talent In addition to new markets, globalization allows companies to find new, specialized talent that is not available in their current market. What are the Challenges of Globalization? Some of the hurdles companies face when going global include: 1.

Payroll and Compliance Challenges Another common global expansion obstacle is managing overseas payroll and maintaining compliance with changing employment and tax laws. Loss of Cultural Identity While globalization has made foreign countries easier to access , it has also begun to meld unique societies together.

Foreign Worker Exploitation Lower costs do benefit many consumers, but it also creates tough competition that leads some companies to search for cheap labor sources. Global Expansion Difficulties For businesses that want to go global and discover the benefits of globalization, setting up a compliant overseas presence is difficult. Immigration Challenges and Local Job Loss The political climates in the United States and Europe show that there are different viewpoints on the results of globalization.

How Globalization Changes Your Daily Businesses Operations Both the benefits and challenges of globalization change how a business operates in different ways. Some operational changes companies should expect from globalization include: 1. Global Communication Challenges Before starting to branch out from headquarters, firms have to put an established internal communication plan in place since global employees likely work in a different time zone and have a different native language.

International Employee Expectations Foreign employees have different expectations when it comes to things like salary and benefits, as well as how they manage their daily work schedules. Supporting Foreign Customers Similar to communication changes with employees, companies must also plan for how they run customer service and support in new countries.

Increased Competition International companies have to adjust more than internal operations. Marketing and Communication Changes Just like hiring employees in different countries creates internal communication challenges, marketing your products or services to a completely new audience creates obstacles for companies.

Go Global with the Right Partner In the past, cost and regulatory challenges were massive barriers to companies going global in search of the benefits of globalization. All rights reserved. The free movement of capital allows businesses and individuals to spend money in other countries as well as hold money in banks in different countries.

This provides much more financial freedom. What is globalisation? If your business falls into one of these categories, there are two types of international business models to consider: transnational and multinational. Transnational corporations have offices in multiple countries, each responsible for a different facet of the organization. For instance, marketing may be based in London, research and development in Bogota, and software development in New York.

Multinational corporations also have offices in multiple countries, but unlike transnational corporations, each is a microcosm of the larger organization.

This means each office has, for example, its own leadership, marketing, sales, research and development, technology, and human resources teams. An example of a multinational corporation is PepsiCo, which has 32 offices across 24 countries. Transnational corporations typically have the benefit of everyone on a specific team being located in the same office, although this may change with the rise of remote work.

Being in the same office can decrease miscommunication and reinforce the idea that each office is an integral part of the larger company. Multinational companies may not beget this same mindset, but they benefit from having someone from every team present in each office. Customer expectations are directing markets. Information is a most expensive and valuable production factor in the current environment. Information can be easily transferred and exchanged from one country to another.

If a company have a chance to use knowledge and information then it means that it can adapt to this global changing. This issue is similar with the technology transfer issue in global markets. The rapid changing of the market requires also quick transfer of knowledge and efficient using of that knowledge and information. If you want to find out about other effects and aspects of globalization, read Corporate Social Responsibility: Part II. No two teams are alike.

Some team members work well together while others butt heads. Although team members vary massively, the journey a team takes to become a successful working unit can be broken down into 4 stages. Whether you live in India or are heading over for business, it is important to know what to wear so that you can dress to impress.