The Benefits of Globalization to Your Business
“A man’s feet must be planted in his country, but his eyes should survey the world.”
– George Santayana, philosopher and writer.
With the whole debate about positive and negative arguments about globalization around the web and in economical circles, we will try to cover some of the benefits for your small to medium sized business. The focus will be on answering this simple question: Are big multinational corporations the only ones that benefit from business globalization?
Globalization improves free trade and boosts the global cash flow. With the development of modern communication tools, especially the Internet, the global trade has become less complicated and more efficient. Nowadays, one can easily communicate with companies and people on the other side of the globe at extremely low costs, if not completely free. With the increase of trade around the world, the costs of transportation are dropping, thus enabling higher profits and competitive prices offered by large businesses who can afford their own transportation cargos. And definitely, with more cash on the market, there is a much bigger opportunity for small and medium sized companies to earn more. In other words, it can be said that the global market development allows bigger equality for small players.
Besides increment of the cash flow on the global level, business globalization also enables higher labor force movements. By lowering labor force costs, companies are getting an opportunity to lower the prices of their products and services. This again enables them to compete with the big market players and gain more customers. Again, with expansion of the Internet it becomes quite an easy task to hire people from completely other side of the world to work with you on some projects, especially in the IT sector, but in other areas as well. By outsourcing some of the work, small and medium sized companies get an equal shot to compete with those large multinational corporations, thus confirming a significant globalization impact on business.
The growth of the global market seems to support democratization of other countries and markets, from which everyone benefits. By increasing the market scale and enabling technological development of some not so advanced parts of the world, opportunities grow even more. Nowadays you can find customers in parts of the world that you have never visited or even heard of before. This improves competition between various companies from around the world, enabling those with good products and quality services to survive and make profit.
The growth of the global world market supports economy independence from politics and outweighs other drawbacks as well. Without those negative influences, you have more freedom to improve your business and focus on your products or services; furthermore, it allows you to be more creative.
Through better communication with different parts of the world, companies become more specialized in certain products and parts, thus enabling other companies or clients to search for higher qualities or cheaper parts for their products or elements of their own service. Not even to mention higher trade or transport potentials in case your company is in any of these business niches.
Again, some of the features we’ve mentioned here may raise other questions and possibly certain negative impacts as well, which brings us back to the most popular topic of listing both pros and cons of business globalization. However, standing and crying about it will not help since many of the world’s best economies claim that the process of business globalization can no longer be stopped, so you’d better learn to live with it, and try to benefit from it. Improve your company operations through one or more of these features.