Globalization is an established part of the modern world, so most of us do not realize the benefits it brings to our everyday lives—such as easy access to a variety of different cuisines or new technologies developed by countries half a world away.

Even though globalization makes our lives better, it does bring some challenges as companies start to grow and expand across borders. Cultural differences around the world are undeniable. These differences create hurdles for businesses entering foreign markets and necessitate changes to their daily business operations, whether it’s employing workers in a new region or communicating the value of their product to a new audience.

As a business, you might also be wondering how globalization affects your business, especially how it might affect the way your customers relate to your brand. If this is you, this article will assist you.

• What Is Globalization?
• What Are the Benefits of Globalization?
• What Are the Downsides to Globalization?
• How does Globalization Affect your Business?
• What are the 5 Things That are Affected by Globalization?
• Examples of Globalization
• The Economic Impact of Globalization on Developed Nations
• How has Globalization Affected Consumers?
• What are the 5 Disadvantages of Globalization?
• What are the Main Influences on the Global Consumer?
• What are Current Consumer Behavior Trends?
• How does Globalization Affect Companies?
• How Does Globalization Affect Marketing?
• How does Globalization Affect the Lives of People Around the World?

What Is Globalization?

Before discussing the benefits and challenges of globalization, it’s essential to have a strong understanding of what the term means.

The official definition of “globalization” is the process by which businesses or other organizations develop international influence or start operating on an international scale.

Read Also: The Common Products that Consumers Purchase From Small Companies

More simply, globalization refers to an open flow of information, technology, and goods among countries and consumers. This openness occurs through various relationships, from business, geopolitics, and technology to travel, culture, and media.

Because the world is already so connected, most people don’t notice globalization at work every single day. But the world is getting smaller, and companies need to understand what this means for the future of doing business. Companies that don’t embrace globalization risk losing a competitive advantage, which allows other businesses to take over new opportunities in the global marketplace.

What Are the Benefits of Globalization?

Globalization impacts businesses in many different ways. But those who decide to take on international expansion find several benefits, including:

1. Access to New Cultures

Globalization makes it easier than ever to access foreign cultures, including food, movies, music, and art. This free flow of people, goods, art, and information is the reason you can have Thai food delivered to your apartment as you listen to your favorite UK-based artist or stream a Bollywood movie.

2. The Spread of Technology and Innovation

Many countries around the world remain constantly connected, so the knowledge and technological advances travel quickly. Because knowledge also transfers so fast, this means that scientific advances made in Asia can be at work in the United States in a matter of days.

3. Lower Costs for Products

Globalization allows companies to find lower-cost ways to produce their products. It also increases global competition, which drives prices down and creates a larger variety of choices for consumers. Lowered costs help people in both developing and already-developed countries live better on less money.

4. Higher Standards of Living Across the Globe

Developing nations experience an improved standard of living—thanks to globalization. According to the World Bank, extreme poverty decreased by 35% since 1990. Further, the target of the first Millennium Development Goal was to cut the 1990 poverty rate in half by 2015. This was achieved five years ahead of schedule, in 2010. Across the globe, nearly 1.1 billion people have moved out of extreme poverty since that time.

5. Access to New Markets

Businesses gain a great deal from globalization, including new customers and diverse revenue streams. Companies interested in these benefits look for flexible and innovative ways to grow their business overseas. International Professional Employer Organizations (PEOs) make it easier than ever to employ workers in other countries quickly and compliantly. This means that, for many companies, there is no longer the need to establish a foreign entity to expand overseas.

6. Access to New Talent

In addition to new markets, globalization allows companies to find new, specialized talent that is not available in their current market. For example, globalization gives companies the opportunity to explore tech talent in booming markets such as Berlin or Stockholm, rather than Silicon Valley. Again, International PEO allows companies to compliantly employ workers overseas, without having to establish a legal entity, making global hiring easier than ever.

What Are the Downsides to Globalization?

While globalization offers many benefits, it’s not without challenges. Velocity Global’s 2020 State of Global Expansion™ Report: Technology Industry reveals some of the top challenges that U.S. and UK tech leaders face when taking their companies global, and leaders of other companies likely face the same obstacles.

Some of the hurdles companies face when going global include:

1. International Recruiting

It’s not surprising that 30% of U.S. and UK tech leaders cited international recruiting as their most common challenge. Recruiting across borders creates unknowns for HR teams. First, companies create a plan for how they will interview and thoroughly vet candidates to make sure they are qualified when thousands of miles separate them from headquarters.

Next, companies need to know the market’s demands for salaries and benefits to make competitive offers. To ensure successful hires, HR teams must factor in challenges like time zones, cultural differences, and language barriers to find a good fit for the company.

2. Managing Employee Immigration

Immigration challenges cause a lot of headaches internally, which is why 28% of U.S. and UK tech leaders agreed it was one of their top challenges. Immigration laws change often, and in some countries, it is extremely difficult to secure visas for employees that are foreign nationals. The U.S., for example, is getting stricter with granting H-1B visas, and Brexit makes immigration to the UK difficult.

3. Incurring Tariffs and Export Fees

Another challenge both U.S and UK tech leaders said they face in the report is incurring tariffs and export fees—29% agreed this is a challenge for their global businesses. For companies looking to sell products abroad, getting those items overseas can be expensive, depending on the market.

4. Payroll and Compliance Challenges

Another common global expansion obstacle is managing overseas payroll and maintaining compliance with changing employment and tax laws. This management task gets even more difficult if you’re trying to manage operations in multiple markets.

5. Loss of Cultural Identity

While globalization has made foreign countries easier to access, it has also begun to meld unique societies together. The success of certain cultures throughout the world caused other countries to emulate them. But when cultures begin to lose their distinctive features, we lose our global diversity.

6. Foreign Worker Exploitation

Lower costs do benefit many consumers, but it also creates tough competition that leads some companies to search for cheap labor sources. Some western companies ship their production overseas to countries like China and Malaysia, where lax regulations make it easier to exploit workers.

7. Global Expansion Difficulties

For businesses that want to go global and discover the benefits of globalization, setting up a compliant overseas presence is difficult. If companies take the traditional route of setting up an entity, they need substantial upfront capital, sometimes up to $20,000, and costs of $200,000 annually to maintain the business. Additionally, global businesses must keep up with different and ever-changing labor laws in new countries. When expanding into new countries, companies must be aware of how to navigate new legal systems. Otherwise, missteps lead to impediments and severe financial and legal consequences.

8. Immigration Challenges and Local Job Loss

The political climates in the United States and Europe show that there are different viewpoints on the results of globalization. Many countries around the globe are tightening their immigration rules, and it is harder for immigrants to find jobs in new countries. This rise in nationalism is mainly due to anger from the perception that foreigners fill domestic jobs or at companies moving their operations abroad to save money on labor costs.

For example, the Economic Policy Institute reports that the U.S. trade deficit with China (or the amount by which our imports exceed our exports) cost Americans 3.4 million jobs since 2001.

How does Globalization Affect your Business?

Both the benefits and challenges of globalization change how a business operates in different ways. When companies decide to go global, they must be ready and willing to change internal processes. This helps to accommodate new markets and make their global workforce feel comfortable and accepted at work.

Companies see many aspects of their businesses change once they enter the global marketplace. For example, globalization makes the workforce more diverse. This diversity is an overall positive change, but it creates some challenges, such as language barriers and differences in cultural expectations.

Some operational changes companies should expect from globalization include:

1. Global Communication Challenges

Before starting to branch out from headquarters, firms have to put an established internal communication plan in place since global employees likely work in a different time zone and have a different native language.

Software and other digital tools help smooth global communication hurdles and allow teams to connect easily. Zoom, Slack, and Google all provide valuable tools for companies trying to manage employees in multiple offices, countries, and time zones.

2. International Employee Expectations

Foreign employees have different expectations when it comes to things like salary and benefits, as well as how they manage their daily work schedules. Companies that want to take advantage of globalization and hire foreign workers need to accommodate them as much as possible. HR teams must also ensure their offers are competitive and on-par with local expectations during the hiring process.

3. Supporting Foreign Customers

Similar to communication changes with employees, companies must also plan for how they run customer service and support in new countries. Customers in the new market where you offer your products or services might not speak your native language or be close to your time zone.

4. Increased Competition

International companies have to adjust more than internal operations. Going global opens up new revenue streams and increases availability to talent. Because of these attractive benefits, and the ease of going global due to services like International PEO, the global marketplace is competitive. As globalization becomes the norm, many companies often seek the same foreign markets, which increases competition for businesses.

5. Marketing and Communication Changes

Just like hiring employees in different countries creates internal communication challenges, marketing your products or services to a completely new audience creates obstacles for companies. Businesses need to adjust their marketing strategies to communicate the benefits of their product in a way that resonates with a foreign audience.

You cannot assume that a marketing campaign targeting an American audience (or wherever your HQ location is) attracts consumers in Europe, Asia, or any other popular market, as the consumers there have very different wants and needs.

What are the 5 Things That are Affected by Globalization?

Globalization has been a powerful force in shaping modern human history. The world economy has become increasingly connected and interdependent over recent decades, and conventional wisdom suggests that this will only continue in the years ahead.

But while it’s tempting to extrapolate the past effects of globalization into the future, such a leap may also be a mistake. That’s because there is growing evidence that globalization itself is quietly transforming – and how it ultimately evolves may be markedly different from what most business leaders might expect.

Below are five major shifts that have gone mostly unnoticed, as well as the countries and companies that could benefit:

1. A smaller share of goods is traded across borders
Trade is still growing in absolute terms, but a smaller share of the physical goods made worldwide is now being traded. More specifically, during the span of 2007 to 2017, gross exports as a percentage of gross output decreased from 28.1% to 22.5% globally.

2. Services trade is growing 60% faster than goods trade
When we think of trade, we often focus on the trade of physical goods (i.e. autos, aerospace, oil). However, services are becoming increasingly important to the global economy – and if accounted for properly, it’s possible that the value of services is closer to $13.4 trillion, which is higher than the total goods trade.

3. Labor-cost arbitrage has become less important
It’s a common perception that trade flows are driven by companies searching for low-cost labor. However, in value chains today, only 18% of the goods trade is based strictly on labor-cost arbitrage.

4. R&D and innovation are becoming increasingly important
Companies are spending more on R&D and intangible assets such as brands, software, and IP as a percentage of overall revenue. This spending has increased from 5.4% to 13.1% of revenue over the period of 2000-2017.

5. Trade is becoming more concentrated within regions
The geography of global demand is changing as emerging markets consume a higher percentage of total goods. Since 2013, intraregional trade has increased by 2.7 percentage points – a reverse from the longstanding trend.

Examples of Globalization

Because of trade developments and financial exchanges, we often think of globalization as an economic and financial phenomenon. Nonetheless, it includes a much wider field than just flowing of goods, services or capital. Often referred to as the globalization concept map, some examples of globalization are:

• Economic globalization: is the development of trade systems within transnational actors such as corporations or NGOs;
• Financial globalization: can be linked with the rise of a global financial system with international financial exchanges and monetary exchanges. Stock markets, for instance, are a great example of the financially connected global world since when one stock market has a decline, it affects other markets negatively as well as the economy as a whole.
• Cultural globalization: refers to the interpenetration of cultures which, as a consequence, means nations adopt principles, beliefs, and costumes of other nations, losing their unique culture to a unique, globalized supra-culture;
• Political globalization: the development and growing influence of international organizations such as the UN or WHO means governmental action takes place at an international level. There are other bodies operating a global level such as NGOs like Doctors without borders or Oxfam;
• Sociological globalization: information moves almost in real-time, together with the interconnection and interdependence of events and their consequences. People move all the time too, mixing and integrating different societies;
• Technological globalization: the phenomenon by which millions of people are interconnected thanks to the power of the digital world via platforms such as Facebook, Instagram, Skype or Youtube.
• Geographic globalization: is the new organization and hierarchy of different regions of the world that is constantly changing. Moreover, with transportation and flying made so easy and affordable, apart from a few countries with demanding visas, it is possible to travel the world without barely any restrictions;
• Ecological globalization: accounts for the idea of considering planet Earth as a single global entity – a common good all societies should protect since the weather affects everyone and we are all protected by the same atmosphere. To this regard, it is often said that the poorest countries that have been polluting the least will suffer the most from climate change.

The Economic Impact of Globalization on Developed Nations

Globalization compels businesses to adapt to different strategies based on new ideological trends that try to balance the rights and interests of both the individual and the community as a whole. This change enables businesses to compete worldwide and also signifies a dramatic change for business leaders, labor, and management by legitimately accepting the participation of workers and the government in developing and implementing company policies and strategies.

Risk reduction via diversification can be accomplished through company involvement with international financial institutions and partnering with both local and multinational businesses.

Globalization brings reorganization at the international, national, and sub-national levels. Specifically, it brings the reorganization of production, international trade, and the integration of financial markets. This affects capitalist economic and social relations, via multilateralism and microeconomic phenomena, such as business competitiveness, at the global level.

The transformation of production systems affects the class structure, the labor process, the application of technology, and the structure and organization of capital. Globalization is now seen as marginalizing the less educated and low-skilled workers. Business expansion will no longer automatically imply increased employment. Additionally, it can cause a high remuneration of capital, due to its higher mobility compared to labor.

The phenomenon seems to be driven by three major forces: the globalization of all product and financial markets, technology, and deregulation. Globalization of product and financial markets refers to an increased economic integration in specialization and economies of scale, which will result in greater trade in financial services through both capital flows and cross-border entry activity.

The technology factor, specifically telecommunication and information availability, has facilitated remote delivery and provided new access and distribution channels, while revamping industrial structures for financial services by allowing entry of non-bank entities, such as telecoms and utilities.

Deregulation pertains to the liberalization of capital accounts and financial services in products, markets, and geographic locations. It integrates banks by offering a broad array of services, allows entry of new providers, and increases multinational presence in many markets and more cross-border activities.

In a global economy, power is the ability of a company to command both tangible and intangible assets that create customer loyalty, regardless of location. Independent of size or geographic location, a company can meet global standards and tap into global networks, thrive and act as a world-class thinker, maker, and trader, by using its greatest assets: its concepts, competence, and connections.

Beneficial Effects of Globalization

Some economists have a positive outlook regarding the net effects of globalization on economic growth. These effects have been analyzed over the years by several studies attempting to measure the impact of globalization on various nations’ economies using variables such as trade, capital flows, and their openness, GDP per capita, foreign direct investment (FDI), and more.

These studies examined the effects of several components of globalization on growth using time-series cross-sectional data on trade, FDI, and portfolio investment. Although they provide an analysis of individual components of globalization on economic growth, some of the results are inconclusive or even contradictory. However, overall, the findings of those studies seem to be supportive of the economists’ positive position, instead of the one held by the public and non-economist view.

Trade among nations via the use of comparative advantage promotes growth, which is attributed to a strong correlation between the openness to trade flows and the effect on economic growth and economic performance. Additionally, there is a strong positive relation between capital flows and their impact on economic growth.

Foreign Direct Investment’s impact on economic growth has had a positive growth effect in wealthy countries and an increase in trade and FDI, resulting in higher growth rates.

Empirical research examining the effects of several components of globalization on growth, using time series and cross-sectional data on trade, FDI and portfolio investment, found that a country tends to have a lower degree of globalization if it generates higher revenues from trade taxes. Further evidence indicates that there is a positive growth-effect in countries that are sufficiently rich, as are most of the developed nations.

The World Bank reports that integration with global capital markets can lead to disastrous effects, without sound domestic financial systems in place.

How has Globalization Affected Consumers?

Consumers have more purchasing choices than ever before thanks to the globalization movement. The Internet has opened new opportunities for browsing from the comfort of home, and there are products available from all over the world. Globalization has changed consumer buying behavior in ways that could never have been anticipated.

The benefits of globalization have been an increase in product variety for consumers, lower prices and improved quality of products, although some might debate the last benefit.

In a consumer-driven economy, people vote with their dollars. The level of U.S. imports is testimony to the consumers’ acceptance of foreign-made goods. While many consumers give lip service to the desire to buy American-made products, most do not. Some consumers express concern about the working conditions of overseas workers.

The fair trade movement is the result; fair trade items are produced by workers who receive larger and fairer compensation for what they produce. The internet, of course, is one of the driving forces of globalization. Consumers can bypass the local merchant and search the world to find the products the desire.

One of the interesting effects of globalization that bodes well for small businesses is the rebirth of local industry, Product labeling that identifies a product’s country of origin has heightened consumer awareness of the extent to which foreign-made goods have replaced those made in America.

Coupled with a concern about loss of jobs, cottage industries have ridden a “buy America” movement. Even some grocery stores are touting locally grown food products. While not making a major impact on imports, the localization movement has raised consumer awareness and is creating demand for niche products.

What are the 5 Disadvantages of Globalization?

While it can benefit nations, there are also several negative effects of globalization. Cons of globalization include:

1. Unequal economic growth. While globalization tends to increase economic growth for many countries, the growth isn’t equal—richer countries often benefit more than developing countries.

2. Lack of local businesses. The policies permitting globalization tend to advantage companies that have the resources and infrastructure to operate their supply chains or distribution in many different countries, which can hedge out small local businesses—for instance, a local New York hamburger joint may struggle to compete with the prices of a multinational burger-making corporation.

3. Increases potential global recessions. When many nations’ economic systems become interdependent, the likelihood of a global recession increases dramatically—because if one country’s economy starts to struggle, this can set off a chain reaction that can affect many other countries simultaneously, causing a worldwide financial crisis.

4. Exploits cheaper labor markets. Globalization allows businesses to increase jobs and economic opportunities in developing countries, where the cost of labor is often cheaper. However, overall economic growth in these countries may be slow or stagnant.

5. Causes job displacement. Globalization doesn’t result in an increased number of jobs; rather, it redistributes jobs by moving production from high-cost countries to lower-cost ones. This means that high-cost countries often lose jobs due to globalization, as production goes overseas.

What are the Main Influences on the Global Consumer?

Both businesses and consumers can use these principles to better understand the inner workings of purchasing behaviors and to determine which strategies are most likely to succeed.

1. Reciprocity: Humans often feel the need to return a favor or reciprocate kind gestures. For consumers, this might mean offering a free sample or a generous discount, for example.
2. Commitment: Once someone is engaged with something, they are more likely to stick with it. In business, this means cultivating brand loyalty; once someone is using a product or service, they are more likely to commit to paying for it again.
3. Consensus: If more people do something, others are likely to do it as well. When brands can demonstrate their popularity or satisfaction across a wide customer base, other consumers are likely to buy in as well.
4. Authority: People are more likely to listen to an expert than anyone off the street. So, while pack mentality is important, a relevant expert speaking to the effectiveness of a brand’s product or service is important to convert new consumers.
5. Liking: People who are similar to the target consumer are more likely to persuade the consumer to buy. People from similar demographics – whether in terms of ethnicity, socioeconomic class, religious inclination or even shared interests – are far more effective at persuading consumers than those they perceive as vastly different.
6. Scarcity: People tend to want what they perceive they cannot have. Making a product or service seem exclusive or as if it will go out of stock if they don’t act quickly often makes it more enticing to the consumer and increases the likelihood that they will buy.

Armed with these six principles of influence, companies can more adeptly navigate their potential consumers and convert more to sales.

What is Consumer Behavior?

Consumer behavior refers to the study of what causes individuals and organizations to purchase certain products and support certain brands. This area of study focuses primarily on behavior, motivations and psychology.

• Psychological factors: The way a person responds to an ad campaign depends largely on their own perceptions, attitudes and general view of life.
• Personal factors: Audience demographics such as age, culture, profession, age and background play major roles in forming consumers’ interests and opinions.
• Social factors: A person’s social groups affect how they shop. Their income, education level and social class influence their buying behaviors.

What are Current Consumer Behavior Trends?

It’s easier to know how to influence consumer behavior when you know consumer trends. As businesses evolve, so do consumers’ habits and priorities. Customers’ tastes 10 years ago were different from their present tastes, and they will be different 10 years from now. When trying to create and enhance your marketing strategy, always keep in mind that consumer behavior trends change.

With that in mind, here are some of the customer behavior trends informing actions:

Transparency

Over the last few years, customer demand has increased for transparency in the businesses they support. Consumers now boycott and quickly dismiss companies that have questionable practices or are run by CEOs they politically disagree with. Customers are more likely to support companies that align with their personal beliefs and values. Companies need to be transparent about their histories and practices to gain their consumers’ trust.

Online buying

The COVID-19 shutdowns forced people to stay inside their homes, leading to an increase in online spending. Even with restrictions being lifted, that trend is likely to continue. Companies need to meet consumers where they are, and now more than ever, that’s online. That means launching an intuitive e-commerce site that offers a positive customer experience. When developing strategies to influence customer behavior, brainstorm ways to influence consumers both in person and online.

Anonymity

With so much business being done online, many consumers are concerned with the security of their personal information. Consumers are demanding more anonymity; they don’t want a company to know too much about them aside from the necessary details for the business exchange.

Companies need to meet consumers halfway and accommodate the ones who refuse to provide any information besides what is needed for a transaction. This may make it more difficult to influence a specific person, but showing that your company follows this trend could influence their spending.

Clean and green companies

Climate change is a major fear for many people. Consumers want to do their part to reverse the damage to the planet. They are demanding more environmentally friendly companies and will push that demand further in the future. With an eye toward clean and green practices, consumers are often influenced by companies with sustainable products.

How does Globalization Affect Companies?

Globalization is a leading concept that has become the main factor in business life during the last few decades. This phenomenon affects the economy, business life, society, and environment in different ways, and almost all corporations have been affected by these changes.

These changes are mostly related to increasing competition and the rapid changes of technology and information transfer. To challenge these changes, companies need to keep in mind various aspects of the main effects of globalization.

Competition

Globalization leads to increased competition. This competition can be related to product and service cost and price, target market, technological adaptation, quick response, quick production by companies etc. When a company produces with less cost and sells cheaper, it is able to increase its market share.

Customers have a large multitude of choices in the market and this affects their behaviors: they want to acquire goods and services quickly and in a more efficient way than before. They also expect high quality and low prices.

All these expectations need a response from the company, otherwise, sales of company will decrease and they will lose profit and market share. A company must always be ready for price, product and service and customer preferences because all of these are global market requirements.

Exchange of Technology

One of the most striking manifestations of globalization is the use of new technologies by entrepreneurial and internationally oriented firms to exploit new business opportunities. Internet and e-commerce procedures hold particular potential for SMEs seeking to broaden their involvement into new international markets.

Technology is also one of the main tools of competition and the quality of goods and services. On the other hand, it necessitates quite a lot of cost for the company. The company has to use the latest technology for increasing its sales and product quality. Globalization has increased the speed of technology transfer and technological improvement. Customer expectations are directing markets.

Most companies in capital-intensive markets are at risk and that is why they need quick/rapid adapting concerning the customer/market expectations. These companies have to have efficient technology management and efficient R&D management.

Knowledge/Information transfer

Information is the most expensive and valuable production factor in the current environment. Information can be easily transferred and exchanged from one country to another. If a company has a chance to use knowledge and information then it means that it can adapt to this global change. This issue is similar to the technology transfer issue in global markets. The rapid changing of the market requires also a quick transfer of knowledge and efficient using of that knowledge and information.

How Does Globalization Affect Marketing?

As globalization increases, its impact on businesses becomes more visible. So, what can globalization do for B2B marketing campaigns?

The world is shrinking

Thanks to globalization, our world is shrinking. Spurred on by the spread of easy internet access, businesses of all sizes have the opportunity for global growth.

You need only consider the clichéd, “built a software program in their basement” story to know that designing a product in Stoke-on-Trent and selling it to Silicon Valley is now well within the realms of possibility. This new reality is exciting and potentially lucrative, but it comes with a unique set of challenges that your business will need to address when planning out future B2B marketing strategies.

Essentially, our shrinking world has provided companies with a much broader target market. Successfully marketing your product on a global scale requires that your business stays up to date with trends and changes in your industry across the world. It’s imperative that you fully understand the specific needs, values, and pain points of your target audience if you wish to market effectively to them.

Get to know your audience

Whether you’re developing content for a blog or planning an advertising campaign for a new product, you must first get to know the varying local nuances of your target market. What languages do they speak? Are there any cultural differences you need to be aware of? Don’t make assumptions about the needs and pain points of your audience – conduct market research so that you can make informed decisions in your marketing strategy.

When entering foreign markets, it’s worth building relationships with potential partners and customers ahead of launching your marketing efforts. Reach out to prospects, organize meetings and work on building up a local presence to show that you are invested in the new location. After all, to some extent, it’s not just about what you know, but who you know.

Part of familiarising yourself with your audience also involves identifying the best channels to use to market to them. The channels you currently focus on may not be appropriate or effective in other markets.

In some parts of the world it may be wise to invest more in mobile marketing channels than you do at home, while in others, offline channels like events may be pivotal to your marketing efforts when you first launch. Take time to research the most popular apps in different regions to ensure that your efforts aren’t wasted on the wrong platforms.

Tailor your content

Once you’re familiar with your target audience, the next order of business is in tailoring your marketing techniques and content accordingly. Let’s say, for instance, that your US-based company is promoting the next big cloud-based platform and you want to target the African market. Here is a hypothetical example of how and why you may need to adapt your content and approach:

The government in South Africa has re-introduced a rota of nationwide electricity rationing – otherwise known as load shedding – to help prevent the collapse of the power grid, as supply fails to keep up with demand. Alongside a wide range of inconveniences, these daily electricity “blackouts” also cause computer systems to shut down. Data security and protection are at risk as a result, and businesses are in danger of losing any information created or uploaded since their last backup.

When designing your content strategy for this market, you’ll need to address these issues. Your marketing content should home in on the pain points that frustrate your potential customers and cause their business the most trouble.

By understanding their problems, you can present your cloud-based platform as a solution. So, in this instance, you would place an emphasis on automatic backups, data security and the ability to work from multiple devices that require no electricity to run.

Widened horizon, narrowed focus

Increased globalization allows businesses to have a greater impact on their product or message. Globalization has broadened the horizons of B2B marketing by breaking down the borders between countries and extending the reach to foreign clientele. Access to mass markets can lead to increased sales for businesses, while consumers can benefit from full product variety and competitive pricing.

Though horizons are inevitably widened as a result of globalization, businesses must be careful to retain a narrow focus in their B2B marketing. When it comes to advertising, marketing, and product development, one size certainly does not fit all.

It’s imperative that businesses spend time getting to know their audience and designing varying strategies to attract the target buyers in each location. To run successful B2B marketing campaigns, brands must always stay up to date with technology innovations, economic trends and competition within the different countries they intend to target.

How does Globalization Affect the Lives of People Around the World?

In economics, globalization can be defined as the process in which businesses, organizations, and countries begin operating on an international scale. Globalization is most often used in an economic context, but it also affects and is affected by politics and culture.

In general, globalization has been shown to increase the standard of living in developing countries, but some analysts warn that globalization can have a negative effect on local or emerging economies and individual workers.

The rate of globalization has increased in recent years, as a result of rapid advancements in communication and transportation. Advances in communication enable businesses to identify opportunities for investment. At the same time, innovations in information technology enable immediate communication and the rapid transfer of financial assets across national borders.

Improved fiscal policies within countries and international trade agreements between them also facilitate globalization. Political and economic stability facilitate globalization as well. The relative instability of many African nations is cited by experts as one of the reasons why Africa has not benefited from globalization as much as countries in Asia and Latin America.

Benefits

Globalization provides businesses with a competitive advantage by allowing them to source raw materials where they are inexpensive. Globalization also gives organizations the opportunity to take advantage of lower labor costs in developing countries, while leveraging the technical expertise and experience of more developed economies.

With globalization, different parts of a product may be made in different regions of the world. Globalization has long been used by the automotive industry, for instance, where different parts of a car may be manufactured in different countries. Businesses in several different countries may be involved in producing even seemingly simple products such as cotton T-shirts.

Globalization affects services too. Many businesses located in the United States have outsourced their call centers or information technology services to companies in India. As part of the North American Free Trade Agreement (NAFTA), U.S. automobile companies relocated their operations to Mexico, where labor costs are lower.

The result is more jobs in countries where jobs are needed, which can have a positive effect on the national economy and result in a higher standard of living. China is a prime example of a country that has benefited immensely from globalization.

Another example is Vietnam, where globalization has contributed to an increase in the prices for rice, lifting many poor rice farmers out of poverty. As the standard of living increased, more children of poor families left work and attended school.

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Consumers benefit too. In general, globalization decreases the cost of manufacturing. This means that companies can offer goods at a lower price to consumers. The average cost of goods is a key aspect that contributes to increases in the standard of living.

Consumers also have access to a wider variety of goods. In some cases, this may contribute to improved health by enabling a more varied and healthier diet; in others, it is blamed for increases in unhealthy food consumption and diabetes.

Downsides

Not everything about globalization is beneficial. Any change has winners and losers, and the people living in communities that had been dependent on jobs outsourced elsewhere often suffer.

Effectively, this means that workers in the developed world must compete with lower-cost markets for jobs; unions and workers may be unable to defend against the threat of corporations that offer the alternative between lower pay or losing jobs to a supplier in a less expensive labor market.

The situation is more complex in the developing world, where economies are undergoing rapid change. Indeed, the working conditions of people at some points in the supply chain are deplorable. The garment industry in Bangladesh, for instance, employs an estimated four million people, but the average worker earns less in a month than a U.S. worker earns in a day.

In 2013, a textile factory building collapsed, killing more than 1,100 workers. Critics also suggest that employment opportunities for children in poor countries may increase the negative impacts of child labor and lure children of poor families away from school. In general, critics blame the pressures of globalization for encouraging an environment that exploits workers in countries that do not offer sufficient protections.

Studies also suggest that globalization may contribute to income disparity and inequality between the more educated and less educated members of society. This means that unskilled workers may be affected by declining wages, which are under constant pressure from globalization.

Into the Future

Regardless of the downsides, globalization is here to stay. The result is a smaller, more connected world. Socially, globalization has facilitated the exchange of ideas and cultures, contributing to a worldview in which people are more open and tolerant of one another.