MarketQuake Workstation Industries, Globalization Report
Key Areas of Focus
Globalization has undoubtedly become one of the essential concepts in business because it affects the economy, life environment, and society, which in turn enhances competition and rapid changes in technology. Capturing additional customers overseas and gaining exposure requires proper preparation by the business, particularly the vital areas that drive the business decision.
It is significant if global expansion is good for the business. Initially, it is critical to determine if a service or product adds value to the international community (Abner, 2015). Knowing and understanding the cultural environment that the business operates or intends to operate can give it an added advantage. Besides, there are legal and regulatory issues that must be taken into account because the ability to work within the local laws and regulations is an explicit guarantee that the business can operate in foreign markets (Abner, 2015). It is advisable to seek international legal counsel before engaging in global trade.
Foreign government considerations also must be looked into because they affect the currency exchange rates, accessibility to needed resources, communication, and transportation issues, availability to capital, protection policies, and immigration and employment policies. Political and business factors of foreign governments must be determined first (Abner, 2015). Finally, it is essential to consider business case by performing a market study, carrying out economic feasibility, market trends, and financial feasibility to determine if going global makes financial sense (Abner, 2015). When all the factors are addressed, the business is free to ply its trade in the foreign market. Don't use plagiarised sources.Get your custom essay just from $11/page
Advantages of Doing Business Globally
Doing business beyond a specific jurisdiction helps in tapping into a marketplace that presents itself with additional benefits. Operating in a global market increases the number of customers, which in turn increases revenue (Osano, 2019). It does not matter if the domestic market is saturated because there are new customers expected from the global market. Going global exposes businesses to greater access to talent from the foreign employees, thus giving an organization an edge over other corporations. There is also an aspect of learning new foreign cultures that can make the organization better-rounded and creating market content that integrates foreign culture (Osano, 2019). Going global further exposes a business to international investment opportunities that can be beneficial to the organization.
Potential Downsides and Risks of Doing Business Globally
In as much as there are benefits of going global, there are also demerits. The physical distance may make it hard to talk to the prospects in person. There may also be additional costs that a business may be forced to incur, such as freight and shipping costs. Unfamiliar cultures may also make it hard to interact with persons in the foreign market (Ristovska & Ristovska, 2014). Mastering marketing can be a challenge, too, because there may be a problem in the way prospective customers are reached. It may be hard to adapt marketing content to a new market. Having an efficient communication style may be a challenge because the business leaders may find it difficult, reaching the foreign market (Ristovska & Ristovska, 2014). Another risk is the rise in tariffs and export fees in some international markets that may make doing business hard and costly.
The Effects of Diversity, Technology and Employment Relationships
Diversity can be easily achieved through globalization. A business may produce a variety of products for different foreign markets. Technology has also made it easier to sell products online and compete globally with other companies (Ristovska & Ristovska, 2014). Communication with buyers has been made much more comfortable than before. The employment relationship among persons from different cultures can help in improving the business growth provided that the culture of the foreign market is well understood. Venturing into a global market requires a friendlier approach to the overseas market to avoid backlash from foreign employees.
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