The flattening of the world and the seemingly limitless opportunities for global commerce have brought a new set of challenges and rewards for those willing to adjust to a new paradigm of business. The old business model consisted of maintaining all business functions in one country, from the purchasing of raw materials, manufacturing finished goods, selling these goods, and providing customer support for those who purchased the product. The ubiquity of technology and the “flatteners” it has provided have fueled a rush to globalization to the point that only a small percent of products are completely made, sold, and supported in one country.
Globalization provides many opportunities for businesses. If the entire world is now the market instead of one country, then it is evident that sales opportunities have increased. In addition, these new markets may have a different set of wants and needs that can be a perfect fit for this business’s product. The global workforce means that workers in other countries can bring a different perspective and skill set to the business. One particularly good example of this is the outsourcing of many functions to India. Skilled and unskilled labor can be utilized at a fraction of the cost of an identically competent worker in the United States.
These advantages do not come without challenges. A business must consider the fact that government systems and regulations may not be compatible with the culture of the company. In addition, a business that has physical assets in a company with an unstable government might risk losing those assets should a coup occur. Intel, for example, must strongly consider this before moving a multi-billion dollar fabrication facility to a ...