Globalization it is important to have the capacity

Globalization is probably the most important force affecting businesses today. The technological developments of the recent times have made international commerce a necessary paradigm for all businesses. This is because it has become easy to import labor without the physical transfer of workers. In addition, it is easy to sell goods and services to people who live in far off places without the necessity of opening a front office in their locality.

In order to have a truly global business, the following three things are important to consider. These are; an investment in a robust information technology system to support business processes, development of cross cultural interaction capacity and thirdly, development of strategic partnerships to leverage on the expertise of global carriers (Gilson, 2010).

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Firstly, information technology systems for global commerce include an appropriate website, online support for products, reliable servers and information exchange infrastructure, and online security tools. As an international business, a website is the front office and makes it possible for everyone interested in using your services to have access to primary information. In addition to this, there is need to have a strong support infrastructure to ensure the site changes according to the needs of the clients and that it is kept safe from cyber crime.

Secondly, it is important to have the capacity to engage with clients in different parts of the world. This calls for cross cultural interaction capacity. It may mean having a local website for each language represented in the target market, and in this case, also having support staff with an understanding of the local languages (Flannes & Levin, 2005).

However, culture goes far deeper than language. Developing an understanding of the various cultural issues that affect the conduct of business in different parts of the world will give the venture a strategic advantage.

Finally, there will be need to develop strategic partnerships with online vendors and other online carriers to facilitate the international business (Pavlovich, 2005). It is very expensive for an individual company to develop its own international supply and distribution network. Online vendors make these processes easy.

They have already developed the infrastructure for supporting international commerce hence it is cheaper to use their services to enter the international market (Froeb & McCann, 2009). For instance, it is convenient to use PayPal as an online payment facilitator, rather than building that capacity internally from scratch.

On the issue of regulation, it is true that for every benefit produced, there is a cost incurred. Regulation normally seeks to protect interests other than profits hence regulation usually leads to reduced profits (Boella, 2000). This may be because of the use of quota systems, limiting of market penetration, or an absolute ban on the exchange of certain good and services.

In situations where regulation establishes a monopoly, the absence of competition leads to reduced standards of service and loss of motivation for innovation (Boella, 2000). In such markets, customers bear with either overpriced goods or poor quality offerings. While the company makes profits, monopolies rarely live up to their full potential just because there is no competition. In some cases, the industry stagnates and never fully recovers.

In conclusion, expansion in today’s business environment requires appropriate information technology infrastructure as a business support system. In order to launch operations globally, there is need to work with online vendors producing key business support service in order to cut down on business development costs. It also calls for the development of cross cultural relations capacity.


Boella, M. (2000). Legal Aspects. In A. Ingold, I. Yeoman, & McMahon-Beattie (Eds.), Yield Management (pp. 20-27). London: Cengage Learning.

Flannes, S., & Levin, G. (2005). Essential People Skills for Project Managers. Vienna, VA: Management Concepts.

Froeb, L., & McCann, B. T. (2009). Managerial Economics: A Problem Solving Approach. Mason, OH: Cengage Learning.

Gilson, S. (2010). Creating Value Through Corporate Restructuring: Case Studies in Bankruptcies, Buyouts, and Breakups . New York, NY: John Wiley and Sons.

Pavlovich, K. (2005). Marriages and Divorces: Strategic Alliances in the Networked Economy- A Case of New Zealand. In Strategic Management in the Aviation Industry (pp. 327-350). Hampshire: Ashgate Publishing.