Globalization, by definition, is the expansion of a company’s or organization’s international presence or scope of operations.
Putting it more simply, globalization is the free exchange of ideas, technologies, and goods between nations and their respective consumers. Relationships in many fields—from trade to geopolitics to technology to tourism to the media—have contributed to this easing of restrictions.
In what ways does globalization help people?
Numerous facets of globalization influence corporate life. On the other hand, people that venture abroad reap many rewards.
1. Exposure to Different Cultures
Food, movies, music, and art from other countries are now more accessible than ever before because to globalization. That you can have Thai cuisine delivered to your flat while listening to your favorite UK-based singer or streaming a Bollywood movie is a result of the free flow of people, goods, art, and information.
The Proliferation of New Technologies and Creative Ideas
Knowledge and technical progress spread rapidly since many countries are connected online 24/7. Scientific breakthroughs in Asia can have an impact in the United States within days, thanks to the rapid spread of information.
Products with Reduced Prices
As a result of globalization, businesses now have more options for creating their wares at reduced costs. Also, it boosts competition around the world, which lowers prices and gives shoppers more options. The improved quality of life at lower prices benefits individuals in both emerging and developed nations.
Increased Global Living Standards
To a large extent, globalization is responsible for the rise in living standards in the world’s poorest countries. The World Bank reports a 35% drop in extreme poverty since 1990. More specifically, the first MDG aimed to halve the poverty rate from 1990 to 2015 by the year 2015. This was completed in 2010—five years ahead of plan. Since then, approximately 1.1 billion people around the world have been lifted out of poverty.
Can You Describe Some of Globalization’s Difficulties?
Although there are many upsides to globalization, there are also some disadvantages. Some of the most significant difficulties that U.S. and UK tech company executives experience when expanding internationally are detailed in Velocity Global’s 2020 State of Global ExpansionTM Report: Technology Industry and other company leaders undoubtedly face similar difficulties.
When expanding internationally, many organizations encounter challenges.
First, the Practice of International Recruiting
Thirty percent of U.S. and U.K. tech leaders correctly identified overseas recruiting as their top difficulty. Human resources departments face more questions when hiring internationally. In the beginning, businesses make a strategy for how they will conduct interviews and check references for candidates while they are hundreds of miles away from the main office. The next step is for businesses to become aware of the salary and benefits expectations of the market. Time zone disparities, cultural variances, and language difficulties are just a few of the obstacles that human resources departments must overcome in order to locate the right recruits for their organizations.
Second, Taking Care of Immigrant Workers
About a quarter of American and British IT executives cited immigration issues as a major problem. As a result of frequent changes in immigration policy, obtaining work visas for foreign national employees can be challenging in some nations. The United States, for one, is becoming more stringent with its H-1B visa allocation, and Brexit has made entering the United Kingdom a challenge.
Third, Paying Taxes and Export Costs
Two-thirds of American and British tech executives cited the cost of tariffs and export fees as a hindrance to expanding their operations internationally. Shipping goods overseas can be pricey for businesses who are wanting to expand their customer base internationally.
Fourth, Difficulties with Payroll and Regulations
Keeping up with overseas payroll and ever-changing employment and tax legislation is another major challenge when expanding internationally. Trying to manage activities in multiple markets compounds the difficulty of this management endeavor.
