Leo Sun The following is a classic story, often used by socialists to highlight the "evils of a capitalist society" - the small town grocer gets mercilessly taken out by the new Wal-Mart in town.
The actions that you take in your local part of the world no longer just stop there — those actions are related to other things that are happening on the other side of the world.
And this is even more true when it comes to small businesses. These small and local companies that used to be confined to one geographic area now have a larger role to play in the global economythanks to globalization. This has provided many challenges to small business owners as to how they can continue to grow and thrive in such a competitive marketplace.
Keep reading down below to learn some more about how exactly globalization impacts small businesses around the world. Access to The Global Market One of the biggest impacts that globalization has had on small businesses is the fact that every business with an Internet connection now has access to the global market.
Now, every single consumer can reach into their pocket, pull out their smartphone, and access the products or services you are trying to sell. This has the potential to massively increase the revenue of any small business beyond what they were able to produce prior to globalization taking effect.
Remote Staffing Another impact that globalization has had is the availability of remote staff on other parts of the world. Where it was once only an option for small businesses to have physical staff members, they can now have employees working in an office on the other side of the world.
Or they can have an entire digital marketing agency conducting their marketing strategy miles away from the headquarters. This has given small businesses the flexibility they need to cut costs and raise revenue.
Competition from Around the World Next up on the list, we have competition.
As globalization increases, more and more businesses enter the market. For the product, you are trying to sell, there is likely going to be ten other businesses that are selling similar products.
That means that businesses now need to improve the quality of their products and lower prices enough to stay competitive. Or else they risk getting kicked out of the market thanks to this high global competition. Make sure to check out the foreign exchange headlines and other financial news outlets to keep ahead of this competition.
A Business Equalizer Thanks to globalization, everything has become a bit more equal.
The Internet gives every single business access to marketing toolsbusiness information, and everything else that can make them as competitive as larger and more established companies.
More and more people are traveling the worldthanks to access to cheap travel.
This means that if your business is related at all to the travel sector, then you are likely to be seeing a big boost in revenue thanks to these tourists. This also means that more businesses are entering this sector, increasing competition. And there you have it! These are the big ways that globalization is affecting small businesses around the world.
Sure, this might seem like some big developments, but if you prepare your businessthen you are much more likely to weather the storm and stay above the tide.The Significance of Globalization for Small Business As indicated by the stock market's response to a feared trade-war between the U.S. and China, nearly every business is affected by global events -- even if the business is located entirely in the U.S.
Another impact that globalization has had is the availability of remote staff on other parts of the world. Where it was once only an option for small businesses to have physical staff members, they can now have employees working . IMPACT OF MANAGEMENT IN GLOBALIZATION OF BUSINESS Globalization has introduced rapid changes in the business management landscape in the local and international arena.
This is a well-known anecdote referring to the impact of globalization on small businesses. Once you start up a new business, you plunge into an ocean populated by a few smaller fish, which compete with you for food, and lots of .
The impact of globalization on business is best evidenced by the huge proliferation in cross-border transactions. In order to protect yields and maintain competitiveness, businesses are continuing to diversify their footprint as it lowers the beta factor on their investments by spreading risk across a broader market.
Globalization leads to the interdependence between nations, which could cause regional or global instabilities if local economic fluctuations end up impacting a large number of countries relying on them.