Generally speaking, globalization is the free flow of information, technology, goods, culture, cargo, capital, and ideas between citizens of different countries, or the interconnectedness among countries. Globalization has been an important part of numerous industries, including business, geopolitics, travel, media, and especially startups and tech.
When human beings learned how to navigate the oceans, the rivers, and the seas, the exchange of goods, people, services, and ideas started happening at a quicker pace. Over the next thousands of years, advances in technology, from modern air travel to dial-up internet, made communication across the globe more feasible.
Now, with remote work tools like Zoom, Google Meet, Slack, and email, corporate communication from one continent to another is almost instantaneous. The advent of modern air travel, on the other hand, has made it easier for teams from all over the world to meet up in-person.
The rapid spread of Covid-19 revealed to all of us just how interconnected our world and the global economy was, especially as the supply chains started failing and shelves in stories across the world stood empty.
It’s no secret that consumers want better products and services, as well as more access to capital, all at a lower cost. Knowledge workers such as engineers and marketers want meaningful jobs, even if it means working remotely. In today’s market, going global is necessary to remain competitive. Globalization in business, then, is how companies and organizations build out their international influence and begin operating in multiple countries. Increased cooperation globally, moreover, also eases the possibility of more war.
As businesses begin to expand and scale up, looking abroad for top talent and new customers can be a good option.
Some key advantages of globalization include:
Gaining access to several new markets
Better products and services, tailored to new markets
Spread of technological innovation, from new medicines to more secure cloud infrastructure
Economies of scale, in which increasing production leads to savings
Higher standard of living across globe
Access to new talent, including workers with niche skill sets
Building a team that covers multiple time zones, which can be especially helpful for sales and customer success departments
Greater access to vendors, contractors, full-time employees, consultants, freelancers, and agencies from all over the world
New trade opportunities
Access to additional channels of capital, natural resources, and raw materials
More potential for growth
Staying ahead of the competition
The pros of globalization businesses are clear, especially for companies looking to tap into new and emerging markets and unique economies. It’s no secret that the free trade agreements in the European Union and North America have been great for promoting both business and international peace.
Going global can take your company to the next level, but that doesn’t mean that you won’t face challenges as you expand your business across borders, including:
Managing employee immigration status
Development of an international tech stack
Local job losses
Traffics, export fees, and international taxes
The substantial upfront capital costs of setting up an entity, subsidiary, or branch
Misclassification of foreign workers (and associated fines)
Converting payments from different financial systems
Foreign transaction fees
Inflation, recession, and the changing winds of economic growth
Gentrification in cities that attract expats, which leads to cost of living increases in places like Mexico City
Communicating value of a product to a new audience through marketing and PR
Environmental concerns, especially for developing nations
Political instability, especially during changes of national power
Supply chain and transportation disruptions, which can impact production
Globalization will change how your business operates day-to-day. As you expand abroad, choosing the right partners is not only important for business. It’s also the right move ethically.
The cons of globalization shouldn’t stop your business from expanding internationally. Instead, business leaders need to create bulletproof strategies while expanding into new markets.
When the pandemic sent workers across the globe home in March 2020, people stopped commuting to offices and business trips, like leisure travel, ground to an arresting halt. Successful companies adapted by moving their business operations online, which meant more meetings on video conferencing tools, like Zoom and Google Meet.
This sudden shift meant that more companies adopted flexible working policies, especially work for home. For companies, this meant that they could start recruiting talent from across the country, so long as employees were willing to work in the company’s usual time zones.
Now, the challenge for companies is finding effective ways to share knowledge and comply with third-party data regulations, like the GDPR in Europe or CCPR in the United States.
Some companies took the remote work revolution as an opportunity to hire top talent from around the world. Global businesses from major enterprises and Fortune 500 companies to small startups and entrepreneur-led ventures have benefited from hiring internationally.
Rather than go through the more traditional routes of opening an entity, subsidiary, or foreign branch, many companies opted to hire more quickly by partnering with an EOR (employer-of-record) services provider like Via.
In many foreign countries, it’s hard to hire new employees without an established business or physical presence. By partnering with an EOR, you won’t need to worry about understanding international employee expectations in terms of holidays, vacation time, salary, and benefits. An EOR service takes care of all of the HR paperwork so that you can tap into a booming labor market without any additional stress.
With an EOR approach, you can avoid some of the major problems of expanding internationally, such as:
High investments costs
Confusing local bureaucracy, tax laws, and employment regulations
Immigration headaches, especially work visa paperwork
International finance challenges
An EOR can help companies overcome some challenges of globalization
One of the biggest challenges facing companies going global is making payments across borders, thanks to high foreign fees, bank delays, and exchange rates.
With small and major companies employing people from major companies, one solution that has become popular, especially for countries experiencing high inflation, is paying employees across borders in cryptocurrencies like Bitcoin, Ethereum, and USDT. This is especially true in Argentina.
Unlike fiat or government-backed currencies, cryptocurrencies have the same value in every country, as they are decentralized.
Smaller companies and major enterprises want to hire employees around the globe, but are unsure of how to navigate global expansion from an onboarding and hiring perspective. Via makes hiring international talent seamless. With our-easy-to-use platform, Via manages the local HR processes for employment such as work visas and permits, benefits, payroll, background checks, and more. Our team of local legal experts ensure that your company remains compliant while expanding abroad. As your employer-or-record/entity, Via assumes responsibility for employment liability, so that you can focus on what matters: recruiting and managing your team. We shoulder the risk.
With Via’s transparent pricing, you can pay full-time employees or contractors across borders with no hidden set-up fees, no foreign exchange or transaction fees, and no minimums–start with 1 employee and scale up at your own pace. You decide the path of your business’s growth.