Global business refers to global commerce, whereas a global business is actually a business doing business internationally over long distances. The movement of goods over vast distances back to their respective locations goes back a long way indeed. This is evident in the early development of the steam powered engine where raw materials were in fact moved from one place to another. Today, things are a little different. With the advent of global business, people and products are actually traded from one country to another in what is referred to as global trading.
The early development of the global business system was triggered by the opening up of world trade and the resultant phenomenon of globalization. However, the growth of international business did not happen in a single leap. There were slow but steady stages of development. The first stage of globalization saw the movement of capital across borders. Cross Border Investment Deals (IBIDs) and cross border mergers took place paving the way for greater internationalization. Later on, the internet came into being as an even better means of transacting business internationally.
Today, cross-border business activities account for most of the world’s economic activity. This is evident by the statement of the World Bank that in the past decade, global trade and investment has become the fastest growing sector in the world’s economy. More importantly, this growth has been fuelled by the advent of new technological advances that have made possible the transfer of large volumes of data across borders in a matter of seconds. As more businesses became global and as more consumers became globalized, the need for efficient and cost effective global business strategies was also created. Cross-border business activities have become integral parts of contemporary global business.
Some sectors have responded to the increased demand for international trade by developing their own strategies of globalization. Some of these strategies have been successful in bringing about changes in the growth of the global economy. On the contrary, many enterprises have failed to embrace the significance of globalization. In response to the increasing demand for international trade and the resulting globalization, there have been dramatic changes in the composition of the global workforce. The youth bulge and the changing composition of the labor force have been major factors behind the emergence of many emerging economies like India, China and others.
Innovation and entrepreneurship are two important factors behind the success of global business. Innovation refers to the development of new products and technology based on research and development. A popular example of an innovation is the cell phone. A new cell phone model was developed by Apple Inc. An entrepreneur from Japan introduced the idea to enter the global market and achieve success.
Another important factor behind the globalization of business is the liberalization policies of various countries. With the liberalization policies of different countries, there is opening up of the market for foreign companies in different parts of the world. Examples of such companies include Toyota, Daewoo and Hyundai.
The other important factor behind global business outsourcing is the stakeholder analysis. Stakeholder analysis refers to identifying the interests of different companies and countries in the same organization. For example, if a hospital in the United States needs a patient who needs specialized treatment, it will search for a hospital in another country that can accommodate such patient. A strategic consulting firm will conduct a stakeholder analysis for a company, identify the different countries where the company can have its largest operation and finally decide whether to establish its own operations or outsource the work to a third party. Outsourcing the work will result in saving of costs and allowing the hospital to focus on its core tasks.
To conclude, a good interpreter of international business relations is a great asset for any organization. Having a professional interpreter working on your side will help you achieve your goals faster and achieve greater results. Therefore, every organization should consider hiring an experienced and bilingual interpreter who can communicate effectively with various languages and cultures. A professional interpreter will bring a new dimension in your business by making you aware of the different aspects of your interactions with multiple countries. With the right interpreter at your side, your business expansion will be successful and your company will grow successfully in different countries around the world!