The official definition of “globalization” is the process by which businesses or other organizations develop international influence or start operating on an international scale.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.
While globalization offers many benefits, it’s not without challenges of course;
Firstly, 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 allows 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. 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.
Secondly, 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. Which may lead to unwanted consequences.
Thirdly, managing employee immigration is another issue to deal with while globalizing.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 visas, and Brexit makes the future of immigration to the UK uncertain.
To sum up, there are some consequences to be faced for a better world. 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.