Globalization: An interconnected business world
Globalization is the process and strategy of businesses towards their expansion and operation in new markets. Activities abroad are boosted by new strategies and process transformations. The commercial sector and economic entities connectivity present a series of intangible benefits, driving the enterprise business expansion. Here, we will explore the main indicators of an interconnected and globalized world.
Main indicators of an interconnected and globalized world.
I. International Commerce Growth. The growing number of companies with international presence culminates in a greater offer of products and services around the world. This draws from the potential use of technology and the harnessing of the existing connectivity. The innovation of digital tools allows companies to pass on their product offer in a quick and efficient way to any market in the world.
II. Shared risks ahead of disruptive events. The interconnectivity of companies can be backed by the impact and effects of disruptive events. The high dependency between economic sectors presents significant risks for operational continuity. The impact suffered by only one component of the process will affect the rest of the organization within the same supply chain.
III. Innovation and technological development. The use and understanding of technology will allow companies to stand out in a new market and expand their product offering. Digital tools allow better communication frameworks and collaboration within business entities. The constant development of new technologies, the ease of transfer and their growing adoption rate, represent clear indicators and opportunities of an interconnected world.
IV Connectivity, accessibility and communication. As of the effects of the pandemic, connectivity between business entities has improved with the reduction of collaboration barriers. Taking advantage of the interconnected state of the business world, companies have been able to improve their expansion strategies, allowing for the replication of a business model established in a new place.
V. Human capital and knowledge transfer. The connectivity in today’s world can be translated in the improvement of human capital and knowledge. Organizations have the opportunity of acquiring more qualified labor that can allow for the expansion of the business. On the subject of knowledge, organizations find the opportunity to broaden their knowledge enough to operate successfully.
The current interconnectivity in the world present clear opportunities of expansion and growth for companies. Currently there are conditions capable of improving the expansion strategies of companies. Through the development and innovation of technology tools allow companies the capability of optimizing their processes, compete with high levels of productivity and offer their products to a greater number of clients.
Today’s high connectivity can be translated in significant dependency between organizations. The productive processes with international presence usually operate as a function of the operation of other economic entities, where the impact and effects happening there can place the continuity of the processes are at risk.
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