Globalization comes from the word Global, which means worldwide, universal, or could be said international. So, here we can say globalization is the way where any business and organization extends business internationally.
After strengthening the base branch of any business, every businessman tries to go forward and escalate the more branches over the world or some selected regions of the world where he finds his business would run smoothly.
Globalization is also a very effective way to introduce our products and services over the World. But it is not very easy to globalize anything, efforts and goodwill play an important role in setting up anything in any new and unknown place.
Important Factors Led to Globalization
As we all know the World is becoming digitized day by day so, it’s not very easy to get customer attention on a first or second attempt sometimes a businessman struggles a lot to globalize his business to put trust in their clients. A country’s reputation makes it easy and sometimes harder for one to prove himself a successful entrepreneur. The list of the factors which may affect globalization positively or negatively both is long but, here we will discuss some major of them.
To introduce the product in the international market a businessman needs to show a sample of a product to ship them to start a proper business and catch the clients, Containerization is the basic factor influencing Globalization.
The international market deals with the US Dollar mostly and the countries that have less value of their currency pay a high amount to ship anything internationally.
This is the basic thing to get a handsome profit margin to get reasonable and affordable containerization and shipping costs. And as well a secure shipment process with fewer damages is essential to globalization.
Frequent Changes in Technology
As we notice day to day technology changes. Every new day comes with new things and applications. This affects globalization both in a positive and negative way.
Introducing new communication devices and tools made globalization easier than in the last decade. People easily get in touch with the people sitting far away to get their choice easily at less cost expenditure. This is time-saving and we can operate a business with the World time slot.
Email, WhatsApp, and Facebook reviews, and other video and audio call applications help the business to understand the customer’s choice, People who deal with the services are more beneficiaries than the people who run the business of physical items.
Frequent change in technology sometimes creates a problem of model and series. People like to use the latest technology and the items that get older even a month or two it’s worth in the market and this loss is borne by the businessman who pays for shipment for the same.
Economy changes are directly proportional to the change in business in every market. It affects end-users directly. Inflation and decrease in prices both affect the economy and businesses at times. Goods’ cost and values determine the flow of goods. Economics is a very important part of any industry and trade in Globalization.
Changes in choices and the nature of different people living in different commodities affect the supply of goods. In Western countries due to mostly cold weather people like to use warm necessities, oppositely people from the East used to cool stuff.
Another big economic change is the purchasing power of the customer. People from the poorer regions and developing countries afford to buy cheap goods, as well people of well economic regions focus on the quality of the goods rather it is as much as costly.
After 90’s Chinese goods took over the World Market. China basically captured the World Market by producing almost all goods at a very low cost with flexible buying terms. They even send their goods to the market without cash dealing.
The fund transfer is going to easier to be do in a couple of hours due to the latest technology used by banks and all financial institutions.
As we all know Tax systems and implementations vary in different countries, Payment of Tax in well-developed countries is like a duty to must be performed by everyone to maintain economic development.
But, oppositely in poor countries or undeveloped countries, people try to pay as much minimum as they can pay. The government tries to facilitate as much as it can to promote different types of trade and import of the country and offers a flexible Tax rate to the businesses beneficial for the economy of the country.
Corruption and Bribery
To introduce any business and trade outside the country we just need a license and the legal formalities to run the business smoothly with fewer chances of penalties and loss.
Sometimes it is hard to get a license for the opening of anything and need to pay some extra cash to the agents to get work done easily and quickly.
Although it is illegal to run and get profit it is acceptable to catch out the resources other than legal and get work done within the time frame.
Production plan and strategies where any business finds its stability is most important for a successful business. Over and under production may result in failure and loss of the business. Auto parts, kitchen utensils, household items, garden tools, and other small tools are easy to market through different channels of advertising but this strategy may not work in the case of big items like computers, electronics items, cars, and generators.
Change of Government and their policies affect globalization as political change carries different under or overpressure conditions sometimes. The overall infrastructure of any economy changes the terms and conditions of globalization in a different scenario.
Besides all the factors explained above more things affect globalization, as this depends upon the nature of the business and the community where the business took place.
Having many difficulties and relaxant as well people tries to promote their businesses globally and they are successful at last like China has done and proved.
Lisa is a passionate travelers. She spends 3 months every year visiting different places worldwide. She has visited almost every famous place in the world. She herself is an affiliate blogger