Through the process of Globalisation, the world is moving closer together. The creation of linkages and interconnections between nations is enabling the world to move forward and become increasingly efficient.
People can talk to whomever they want from anywhere in the world, businesses can trade between continents, lower prices for goods can be found along with cheaper locations for investment. These are clearly some of the benefits. However, problems can arise due to ignorance. It is essential to have the know-how and knowledge of the environment you are operating in. In international business terms this could include basic knowledge, such as, the local exchange rate to your own currency, the inflation rate, regional employment laws and so on. These are just some of the really important factors businesses need to consider when expanding or re-locating abroad.
Globalisation effects us all. Facebook has just reached the 1 billion users mark. I predicted in my last post that they would reach it by Christmas, I was wrong. It is incredible that 1/7 of the planet could contact one another with a click of a button. This just shows the power of people.
Of course, there are some downfalls to Globalisation, namely, it can make the environment more volatile, can lead to exploitation and can lead to risky and complex environments. These can be prevented if businesses go about expansion in the correct way, like I already expressed.
I am a strong believer in Globalisation as it is essential for the world to successfully move forward. Multi-National Companies, such as IBM, Microsoft, Apple and Google have successfully proven this.