Years ago, international business was something only the largest organizations could partake in. After all, it required a great deal of resources, something only businesses like Shell or Coca-Cola had. However, in the digital age, it’s considerably easier for even tiny home businesses to conduct global operations. Let’s have a look at some ways in which international business is easier now. Let’s also look at why so many organizations are opting for this option.
The Internet has made it easier for small companies to trade globally
As the introduction stated, it was once too prohibitively expensive for companies to think about trading internationally. However, thanks to the internet, you often don’t even need to be physically present in a country in order to do business there. It is now far easier to manage an international business without visiting the place in question, thanks to software like Skye, as well as Wi-Fi connections that have never been faster. So, expensive travel doesn’t even have to be on the cards anymore. Plus, services like PayPal have simplified the payment method along with iComparefx being a world first international currency conversion and money transfer services.
All of this coupled with the fact that shipping is much faster now, means that global trade is now within the reach of the smallest organizations.
A more diverse audience
Cultures used to be a lot more distinct in the past. However, with the rise of the global mass media as well as the Internet, these cultures have started to blur around the edges and are becoming more homogenous. Western culture, especially, has influenced countries around the world, so that you’ll find Western clothes and movies everywhere. This means that a company’s audience has already increased, and you should be able to find ready buyers beyond your own country.
By expanding to include more people in your audience, you’ll also be able to produce more units. This will allow you to take advantage of economies of scale, since your cost per unit will lower when you produce more units. Thus, you can increase your profit margins.
There’s less competition abroad
If you’re a small business, you’re likely to be competing with a great many other similar organizations. This is a factor that has led to many businesses moving abroad to make use of economies that have heretofore remained unexplored. Since there will be less competition there, your business will have a larger chunk of the market. Plus, if demand for your product slips in your own country, you can simply make use of another market where demand is still relatively higher. This way, you can continue making high profits even when your sales are in a decline back home.
You can hire people around the world too
Companies now often also go global because of the ease with which they can hire employees that they’ll never even physically meet. The internet has created an economy of freelancing, which can allow you to get projects completed at lower rates instead of having to employ full-time staff.