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How Does Technology Affect Business: International Business Growth

How is technology affecting the growth of international business

In the past decade, technology has grown exponentially and has affected our everyday way of life and impacted almost every industry, including international business. Technology is ultimately what makes thriving international trade and businesses possible, and without technology, international business would be slow, tedious and time-consuming. Everyday business operations benefit from technology advances and allow international businesses to develop competitive advantages over their competitors.

Technology is no longer reserved for specific countries or certain groups of people either. These days, even the average person has access to some form of technology, which has aided the technological and international business revolution. Technological advancements are open to all, meaning any business owner can improve customer service offerings and business processes by investing in new technologies to improve their offerings.

In this article, we look at some of the ways in which technology affects international business and what we can expect as technology and innovation continue to grow and expand.

Telecommunications

Not so long ago, there was a time where writing letters was the only way to communicate with your international business connections. These letters could take days, weeks, and even months to reach their destination. But now, technological change has helped us streamline processes such as these. We’re able to send messages and emails instantly and interact through platforms like Skype and Zoom. Mobile technology advances mean we can access mobile apps with ease to conduct business internationally from anywhere in the world.

Telecommunications technology is what makes running an international business doable. It’s necessary for sending invoices, dealing with customers, communicating with suppliers, and keeping in touch with employees that may live in other parts of the world. Every aspect of business activity has been made easier with telecommunication advancements.

Social Media

It could be said that social media is a branch of telecommunications, but it deserves attention of its own as social media has given international business a platform from which it can skyrocket. Social media keeps tabs on global trends in fashion, decor, art, furniture, and a wide variety of other products, which provides international businesses with impressive insight.

Whether it be Instagram, Facebook, LinkedIn, or others, having a social media account allows international businesses to connect with their target audience worldwide and advertise their products to them. Where once people would not be exposed to businesses from other countries, social media has made it easier than ever to stumble upon businesses from all over the world.

Social media also opens up the opportunity for businesses to tap into new markets and explore competition from every corner of the world, improving industry as a whole.

Transportation

There have been several major advances in transportation in the last 80 years or so. No one wants to wait months for their international order anymore; that’s because commercial jet craft has made transporting products to different areas of the globe affordable and timely.  Customers these days are all about instant gratification, so there is a major emphasis on getting orders shipped as quickly as possible.

The explosion in air travel and airports worldwide has also made travelling for business people more accessible and created a huge rise in the travel industry, creating opportunities for many international businesses.

Production

If you’re an international business that sells products, you would have directly benefited from the latest innovations in production. Different technologies have played a major role in the production processes we know today and associated processes such as production planning, financial planning, and marketing. Even some surprising developments in augmented reality and virtual reality technologies have allowed production processes to be made smoother.

Thanks to technology, companies may have production and manufacturing plants in several different countries, and you can choose where to create your manufacturing plant based on where materials are easily sourced and where skilled labour is affordable.

technology improving production processes

Market Globalisation

Market globalisation began forming its roots when it became more affordable and feasible to transport and sell goods in different countries. The internet is seen as a low-cost market globalisation network in an electronic form. Because of social media, television, and the low costs involved in transporting products around the world, there has become a sort of convergence in consumer preferences and tastes. For instance, there was once a time when only Americans wore jeans, but now people worldwide are interested in buying and wearing jeans, and that is how market globalisation works. The same thing goes for brands such as McDonald’s, Pizza Hut etc.

A global culture is created in which different countries begin having similar lists of wants and demands, opening up new markets as new customers become interested in different products and services previously unique to one area. Korean beauty products are probably the best recent example of this.

eCommerce

eCommerce platforms are platforms or websites that specialise in selling products online, usually to an international audience. Over the years, we have seen many advances in eCommerce technology. As a result, we are at a point where almost anyone can make their own eCommerce site with very little trouble, thanks to all of the templates and applications out there. This gives the average person, as well as multi-million dollar corporations, the opportunity to have their goods online and available to be sold.

eCommerce platforms are usually fully integrated with shipping, payment, customer service, etc.

Online Banking

Pay instantly with the click of a button! Technology has played a significant role in online banking, and we have seen tremendous growth in just the past few years. Paying online, no matter where you’re located in the world has truly become easier than ever before, and there are so many options available to you! You can use your credit card, payment solutions such as the popular Paypal, as well as digital currencies like Bitcoin in some instances. In addition, exchange rates and payment fees have become lower, making shopping internationally easy and affordable.

Whether you’re a customer buying a pair of shoes online or an international business owner who needs to pay your suppliers and employees, online banking and payment services have made payments exceptionally convenient.

Technology plays a major role in the security behind all online transactions, too.

Cloud Services

Online document editing with data storage allows for collaboration between businesses. Cloud computing is an excellent way for businesses to work together in different places without the need for lengthy meetings or travelling to one another’s offices to work together.

Nowadays you can work collaboratively using smart devices and mobile devices to increase employees productivity and help your business run seamlessly from anywhere in the world.

Potential Problems And Warnings

Of course, with technological change comes potential problems for business owners, so we would be remiss not to mention some potential pitfalls you might run into as you implement new and exciting technologies into your business.

The biggest issue you may face in the technological age is data breaches. We exchange data everyday as businesses in the technological world, but if we aren’t careful with the data we obtain, that information can be leaked and that’s worrying for customers.

The best way to workaround this is by investing in strong cybersecurity measures. Protect your customers data like your business depends on it – because in many ways it does.

Technological changes help advance your business and bring you a competitive edge, but you should be careful not to invest in technology too much, and lose the human touch that improves customer experiences far more than technology ever can.

The Future Of International Business

Technology is always evolving, and things in the international business landscape won’t ever stay the same for very long. While it is always impossible to predict the future exactly, as business experts, we expect to see trends in international business leaning more towards services than products, the inclusion of digital currencies as forms of payment, and an emphasis on eco-friendliness and transparency.

If you’re interested in getting involved in international business, remember that technology is your friend. The more you understand technology, the better you can use it to your business’s advantage.

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