The onward and upward curve of globalisation
Globalization refers to the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information.
The proliferating effect of globalization. Every era has seen a substantial growth and burst of opportunities compared to the subsequent era: first, men went to the furthest corners of the planet to create a cohesive and unified humanity. Then, the world became smaller, brought together by technology. The third era brought clarity of actions; connecting people with ease and performing trade in the closing gaps of need and opportunity. Today, we are at the forefront of globalization, with the internet and millennial outlook to life that makes almost all things possible for business, leisure and learning.
From such cross joints of historical trends, and the soaring advent of businesses and new markets, has emerged an all-new era of globalized businesses of all sizes and from all industries. A look back at the past three decades shows how corporations have increasingly turned to specialization – in technology, resources, talent pool and quality.
Globalization has revolutionized the way businesses operate. It has changed the organizational landscape allowing an abundant influx of talent, facilities and process capabilities. The increased integration of markets, the mobility of people for jobs and holidays, and the global reach of satellite channels, the internet, and mobile phones has virtually transformed the world into a global village. The arrival of information and communication technology (ICT) and the rapid economic liberalization of trade and investment throughout the world has also accelerated the process of globalization.
A global economy is characterized not only by the free movement of goods and services but, more important, by the free movement of ideas and of capital. – GEORGE SOROS
Business and economic benefits of globalization
Foreign Direct Investment: FDI is the growth ticket for world trade, enabling technology transfer, boosting industrial restructuring, and the multiplication of global companies.
Technological Innovation: The increase in competition coupled with continuous and rigorous R&D has stimulated newer technologies and frameworks, improving economic output by making processes more efficient.
Economies of Scale: Through the reduction of costs and prices, the marketplace becomes a viable playground for businesses of all kinds to trade interdependently which in turn supports economic growth.
How engaging in a globalized partnership can accelerate your business
Reenergize your core business activity: Through international business, you get the best of both worlds. You can build on your strengths, and develop business strategies with the resources and capabilities of a global brand to accelerate your business forward.
Increase efficiencies and improve effectiveness: Achieve more by outsourcing or delegating to specialists in business and technology processing and run a more robust business with superior quality of deliverables.
Cost advantage for investments: Save more through the benefit of foreign exchange and achieve business goals faster by capitalizing on excess funds.
Amplified market reach: Discover newer capabilities and better facilities that may otherwise not be made easily available, accessible or affordable to you.
Higher competitive advantage: Leverage expert knowledge, honed skills and industry best practices through the benefit of a global partner.
The winning companies today are differentiated by their strong global position in terms of global assets, capabilities, talents, and their resilience to changing market conditions and business cycles.
The SMEs and large corporations are the ultimate beneficiaries of a globalized marketplace. They are at the sweet spot where they have already established their product/service offering and are looking to expand and improve efficiency. Business reengineering through globalization leads to sophisticated relations of mutual interdependence removing national restrictions on economies, cultures, technologies and governance. It is the integration of countries and peoples by breaking down artificial barriers, achieved by enormous reduction in costs and capital.
Economic globalization by way of free movement of factor inputs (manpower and capital) as well as rich output between countries has become the format of successful businesses. It is not just the economic integration of countries but also financial, cultural, and political integration across the world that has made transnational partnerships a formidable and strategically sound decision for any business.