The Value Of Studying Global Business
A Globalized World
Global business is a direct consequence of globalization. With this evolution comes the need to understand the aspects of global business management. But before we delve into the significance of these two terms, let's take a step back and explore the meaning of globalization.
Globalisation in essence is the coming together of the world. It is more formally defined by National Geographic as ''a term used to describe the increasing connectedness and interdependence of world cultures and economies''.
Due to the advancements in technology and trade, there is now more accessibility and connectivity than there has ever been before. And as a direct response to globalization, businesses have had to become global as well. And how has this impacted businesses? Let's take a look.
What Is Global Business?
Our world is no longer restricted by physical boundaries. This holds for businesses as well. Businesses no longer exist in isolation. Much like humans, they too have moved beyond the physical boundaries. Global business, therefore, encompasses an exchange (production and selling) of goods or services between countries. These transactions can take many forms. For example, goods can be produced and sold domestically and internationally. Or they may be produced domestically and sold internationally. Innumerable short-term and long-term transactions occur daily.
It is, for this reason, that studying global or international business is crucial. A global business means that it has a presence internationally. This also means that a business will be affected by the global state of affairs. This is also true for businesses that may not necessarily produce or sell goods internationally. We all exist in a global economy. Think of the impact the recent Russia-Ukraine war had on the global economy (e.g., fluctuations in fuel prices).
Why Study Global Business
As a business owner or a key employee or even a start-up in its initial stage, it is vital to be aware of the international business environment and strategic global business management. Let's go into a bit more detail about why.
Knowing the Global Economy
As a business, it is crucial to appreciate the complexities and challenges that arise as a result of changes in the global economy. Strategic global business management is essential to tackle issues such as inflation, geopolitical tensions or economic slowdown. Studying global business enables one to interpret how an economy functions globally.
Expand Your Horizon
Studying global business also gives one access to new cultures and economies. A business looking to expand internationally needs to be aware of the cultural differences and economic conditions in the target country. Culture significantly affects key business decisions. Imagine a situation where a chewing gum company wishes to expand into Singapore (where selling chewing gum has been banned since 1992)!
Businesses also need to adjust their approach and prices based on the economic conditions and demands of a country. These aspects also form part of studying global business.
Think For Yourself
Studying global business allows you to learn from others' successes and mistakes. One has the opportunity to evaluate decisions that have gone right and wrong with companies worldwide. This aids in strategic global business management and allows for critical thinking. Everyone knows that the Covid-19 pandemic affected the global economy in the worst ways. But to truly recognise why it affected the economy so severely and evaluate whether the effects could be eliminated or mitigated, one must have an understanding of global business.
It's Good For Your Career
Studying global business adds significant value to one's professional portfolio. It also allows one to evaluate career opportunities from a global perspective. With a working knowledge of international trade or international business law, for example, one has access to numerous job profiles that can serve as lucrative career opportunities. TimesPro offers the IIM Indore Executive Program In Global Business Management that equips the candidate with the knowledge of global business management, making them potential employees globally.
Conclusion
The world is changing rapidly. And so are businesses. A global economy comes with its own set of challenges and complexities. If these challenges are not dealt with strategically, they could be detrimental to a business of any size. This is where strategic global business management becomes relevant.
One must be aware of the continuously evolving know-how of the global economy. It is important, now more than ever, to be able to analyze global situations, evaluate their potential consequences on a global business, and strategize accordingly. And this is why one must study global business.
