The term “globalization” refers to the process by which people, businesses, and governments from all over the world engage in more economic and cultural exchange. It refers to the elimination of cultural and economic barriers as well as closer ties and trade between nations. High tariffs (import taxes), border controls, and differences in regulations and standards are examples of these trade barriers.
Business expands along with the world’s shrinking. New business opportunities are appearing almost at an almost exponential rate as technology and globalization advance. While this is exciting for businesses, expanding in a way that carries the least amount of risk and reaps the most benefits necessitates serious strategic thinking.
Globalization has been driven by many different factors, including:
- The Internet, apps, and technology like 4th and 5th Generation AI, machine learning, and NLP enable small businesses to compete on the global stage.
- The falling costs of international travel and communication.
- The access to larger markets
Here are many challenges to ‘going global’, especially for startups and small business trading.
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Access to The Global Market
Because of lower trade barriers, small businesses are able to reach previously inaccessible customers in other parts of the world. A small business can grow if it sells its products to people in other countries, especially if it offers something that those countries want.
Technology advancements have made it easier than ever to communicate with other nations. You no longer need to have a physical presence to carry out sales, marketing, and customer service operations in other nations. In turn, this could significantly lower the costs of operating internationally. Every customer now has the ability to access the goods or services you and other small businesses are selling by reaching into their pocket and pulling out their smartphone. Any small business’s revenue can skyrocket thanks to this, far exceeding what it was before globalization.
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Supply chains are global
Products that are produced or assembled locally are frequently transported across national borders. Food, clothing, and even phones are made in other nations. The spread of these business relationships across national borders has become easier as a result of globalization. Technology has also made it easier to manage cross-border supply chains, especially when the supplier is in a different country.
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Remote Staffing
The availability of remote staff, also known as remote workers, is another effect that globalization has had. In the past, employees at start-ups and small businesses needed a place to work. Nowadays, businesses employ both employees and independent contractors worldwide. In places where it might be difficult to find skilled individuals locally, technology can assist you in finding them elsewhere in the world. This is true for a variety of skill sets, such as salespeople, engineers, designers, and content creators. If you look far and wide outside of your country, you might find it easier and less expensive to find the right people for your business.
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A Business Equalizer
Everything has become a little more equal as a result of globalization. Every company has access to marketing tools, business data, and everything else needed to compete with larger, more established businesses thanks to the Internet.
Uber and other tech giants gained popularity so quickly because of this. Small businesses are now able to gain popularity in areas where they would not have been before because the business world is now much more equal.
Disclaimer: The above-mentioned article is simply based on independent research carried out by Dr. Werner and Partners and cannot constitute any form of legal advice. If you would like to meet with up with any of our representatives to seek further information, please contact us for an appointment.