Why globalize a company

Getting information about a new place can help make your organization more well-rounded. Having an understanding of people who are not from your country will give you a new perspective on relations with customers, and may even help you work better with domestic customers and business partners. Hiring a cultural consultant will help guide you in creating marketing content that takes into account culture and any linguistic nuances.

Foreign investment can be extremely valuable for your business as many companies already know. This may be the reason why in , foreign investment was up to seven times the level it was in the s. When you go global, you can more easily learn about these investment opportunities and how beneficial they can be for your company.

Businesses that can successfully go global and market their offerings to a totally different population will enjoy the prestige of calling themselves an international company.

It is not an easy feat to accomplish, meaning prospects and potential business partners will instantly think more highly of your company when they know you have an international presence. If your business only has one or two areas where it can sell services or products, what would happen if these markets experienced a dramatic shift because of a natural disaster or other unforeseen circumstance?

Harvard Business School Online's Business Insights Blog provides the career insights you need to achieve your goals and gain confidence in your business skills. As technology and transportation have advanced, business has become increasingly global. In addition to new challenges and international tensions, purposeful expansion has brought new jobs, customer audiences, and economic opportunity.

Globalization is the increase in the flow of goods, services, capital, people, and ideas across international boundaries, according to the online course Global Business.

An international business is any company that operates and produces or sells goods between two or more countries. There are three ways a business can be considered international:. If your business falls into one of these categories, there are two types of international business models to consider: transnational and multinational.

Transnational corporations have offices in multiple countries, each responsible for a different facet of the organization. For instance, marketing may be based in London, research and development in Bogota, and software development in New York.

Multinational corporations also have offices in multiple countries, but unlike transnational corporations, each is a microcosm of the larger organization. This means each office has, for example, its own leadership, marketing, sales, research and development, technology, and human resources teams. An example of a multinational corporation is PepsiCo, which has 32 offices across 24 countries.

Reduction in trade barriers means stopping the export of goods and manufacturing the goods in that other country. There are huge custom duties which a trader has to bear if he wishes to target a market outside the boundaries of his country. If you want to target the market without the hassle of import and export, you can globalize your business; this will benefit your business, your country and the other country as well.

Competition is ever growing and we have to cope with it if we want to keep ourselves in the market. This is how signature brands come into existence.

A local supplier is always more accessible to the buyers as compared to a supplier from another country. If you have to export your goods to another country, it will not only charge you extra costs, but will also take extra time to deliver goods and many other factors will be involved that can limit your delivery process. The best solution available to this problem is to make a local place in many countries by globalizing your business throughout the world, by especially targeting the markets where supply is not meeting the demand consistently.

In this advanced world of today, we cannot live in isolation. We need to make strong relations with the outside world if we want to grow as a nation.