Business Globalization; What We Need To KnowPosted by: Dennis Adams | Posted on: February 24, 2016
Globalization has become a cliché of the twenty first century and it is capable of being interpreted in various ways. Many different aspects are claimed to be globalised. Business globalization is one of such and certain modern features and practices suggest that it is globalized. Here are certain things that are important to be known on business globalization.
Multinational company is a company where one country has its headquarters and its branches are spread in different countries having access to international markets. Now there is a great proliferation of multinational companies which choose themselves to be governed under multinational treaties they agree upon. Despite various challenges included in operating a Multinational Companies such as political barriers, cultural barriers, and environmental concerns and human rights abuses they continue to operate witnessing the business globalization.
There are many challenges inherent in the globalization of businesses. Economic features of different countries have to be identified with clear proximity to make critical decisions and take timely action. There are many economic facts and figures which have to be analyzed in order to claim that one has a satisfactory economic knowledge on some country. Some countries give prominence to their native languages and do not use English nevertheless it is named as the link language. It is difficult to come in to a proper understanding if one gets them translated directly word to word from ordinary translators. Commercial translation services are therefore needed because if we do not have sufficient resources we cannot successfully understand the situation of a country of which language is different.
The commercial translation services therefore need to employ not just language experts but both language and commercial experts.
Information and communication technology
Use of information and communication technology is the main method which has given spurs to business globalization and which is a vital feature of business globalization. Unlike the days where we had to wait for months, days and weeks to receive a reply from another country, in couple of minutes it is possible to communicate everything we want. Thus business globalization and information and communication technology cannot be separated as both are inter connected.
Franchising is also a technique used in business globalization where a country which has a business can call for franchisees to operate in their countries. Business franchising is found very advantages as the franchisee already have the established practice and the brand name which he only has to maintain subject to conditions imposed by the franchisor.