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Today, where the world is amidst of fourth industrial revolution that is fundamentally altering business culture and socio-economic landscape across the world. Whether local or global business, globalization and technology transforming businesses in different scale, scope, and complexity. Significantly, international business has evolved chronologically, where the world witnessed first industrial revolution (1760-1820) where water and stream power used to mechanize production; second industrial revolution (1871- 1914) where electric power used to create mass production; third industrial revolution in late 20th century where electronic and information technology used to automate production; fourth industrial revolutionis continuation of third where technologies like artificial intelligence (AI), robotics, the Internet of Things (IoT), 3D printing, genetic engineering, quantum computing, and other technologies are being used in the business to enhance its operational efficiency, transparency in the business functionality, and to provide optimum service/product to customers. Through this blog we will discuss, how globalization and technology impacting business.
Impact of Globalization on Business:Globalization provides considerable opportunities to business and creates significant challenges. Below are some significant impacts of globalization on business:
- Globalization has made the world a smaller place where there is immense scope of expansion of market and doing business. Whether small, medium, or large business, they can sell their products and services across the world. On the flip side, there is immense competition thereby only robust business survives and competes globally.
- Rapid communication and transportation have reduced the cost significantly allows business and consumers to readily search for the item in reasonable price.
- Labour disruption is a major impact of globalization on the business where in search of cheapest manpower, infrastructure and resources companies are relocating its business operation to other countries, as a result job lost and disruption to entire communities.
Technology has accelerated all aspects of the business at local and global level, below are some major impacts of technology on business:
- Trailblazing technologies like robotics and automation revolutionizing business operations where robots are being used in service industry to assemble cars, computers and moving goods in warehouses.
- There is negative impact of technology on the business, business world faces security vulnerabilities due to intrusive malware.
- Technology is proving effective in improving overall business productivity, credit goes to machine learning and artificial intelligence technology where repetitive tasks like data entry and cold calling are being done by machine.
Business landscape of 21st century is dynamic where there are immense opportunities for growth but at the same time immense competition thereby also chances of business collapse. Globalization and technology are revolutionizing business landscape where businesses must adapt to changing global economy, where business model should be farsighted and robust to survive the economic fluctuation and recession.
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Challenges to MSME Industries in the Period of Globalization
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