Globalization Relative to Businesses

Globalization has had a large impact on society today, especially in relation to business. It can create a lot of opportunities for businesses but comes with a lot of additional problems. International businesses create a list of contacts through networking, a broad customer basis, and room for higher revenue. However it can cause stress and has strict regulations to follow.

If a business opens up overseas it has the opportunity to expand and can therefore create higher revenue. It can reach more people, and deliver products in a more efficient way. Shipping products will be easier and cost less for the company. The business can also create the products with lower labor costs adding to the higher margin for revenue.

But with high opportunity there is high risk. The company could take on more than it can handle. The company could lose money if the business is unsuccessful especially if they do not look into foreign customs and gather background knowledge for businesses. There could also be a lack of communication between the two headquarters and the business could suffer. If a business tries to expand too soon there will be a lot of stress to hire qualified employees to run the international side.

I think a business should expand when possible. Business is very competitive and to be a competitor businesses need to be international to keep up societal trends. The world is globalizing at a quick rate and soon everything will be offered worldwide. The benefits of expanding contacts, more efficient shipping, reaching more customers, and lower labor costs seem worth the risk especially when there is a good chance of becoming a successful, profitable international company. To establish an international brand is a great accomplishment and I think all businesses should strive towards this.

What do you think is the biggest risk of becoming an international business? Do you think the benefits out weigh the risks of becoming an international business?