Global business is a term used to describe both international trade and the act of a company doing business in more than one area (i.e. country) of the world. Some examples of well-known global businesses include Google, Apple, and eBay. All of these companies were founded in America, but have since expanded to other areas of the world.
In academics, global business encompasses the study of international business. Students learn how to think about business in a global context, meaning that they learn about everything from different cultures to the management of multinational businesses and expansion into international territory.
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Reasons to Study Global Business
There are lots of different reasons to study global business, but there is one primary reason that stands out among all the others: business has become globalized. Economies and marketplaces around the world are interconnected and more interdependent than ever before. Thanks, in part, to the internet, the transfer of capital, goods, and services knows almost no boundaries. Even the smallest companies are shipping goods from one country to another. This level of integration requires professionals who are knowledgeable about multiple cultures and able to apply this knowledge to selling products and promoting services around the world.
Benefits of Studying Global Business
1. Understand Macroeconomics
One benefit of studying global business is that you gain awareness of the dynamics of macroeconomics. You develop an understanding of economic metrics you can use to compare countries on a one-to-one basis and several other factors that impact a country’s economic health.
Some metrics you can learn to use include:
- Gross domestic product (GDP)
- Unemployment rate
- Inflation rate
- Degree of income inequality
- Currency exchange rate
Learning a common language with which to assess and compare different countries’ economic performances can provide a foundation for your international business education.
2. Gain an Appreciation for Different Cultures
Just as important as the “hard skills” of macroeconomics are the “soft skills”—such as emotional intelligence—required to tactfully and respectfully navigate an international business world. Diving into global business means exposing yourself to cultures that might greatly differ from your own. Learning about the customs, holidays, beliefs, social norms, and expectations of the cultures in countries where you’ll be working, selling, and employing people is invaluable when making connections.
Some examples of cultural differences in business include:
- Personal space
- Communicating objectives
- Etiquette
Remember to keep an open mind and lead with curiosity, empathy, and respect. At the heart of every business deal is a relationship between people; set yourself up to forge meaningful relationships with professionals in other countries by expanding your cultural competency.
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3. Navigate the Opportunities and Challenges of International Politics in Business
Because political leaders and systems have the power to influence education, transportation, laws, and taxes, they can also alter the global business landscape.
Studying global business can prepare you for scenarios that occur as a result of political decisions. It can also give you a tool kit for thinking on your feet when the unexpected happens.
4. Learn from Others’ Triumphs and Mistakes
Another benefit of studying global business is learning about the triumphs and failures of international businesses that came before yours. Because global business can be equally rewarding and challenging, familiarizing yourself with other firms’ strategies can help inform your own strategic planning process.
Hearing real business leaders—maybe from your specific industry—tell the stories of their forays into the global economy can bring humanity to concepts and frameworks and allow you to put yourself in their shoes. Would you have made the same decisions they did? If so, what were the outcomes of those decisions, and how did they impact their business? What can you learn from their stories to be better prepared for your involvement in international business?
5. Craft Winning Business Strategies
A long-term benefit of studying international business is developing the ability to think on a global scale, and thus formulate strategies for your business with the big picture in mind.
When crafting winning strategies, it’s important to keep in mind all factors that could possibly impact your business’s trajectory toward its goals. In a global market, that list of factors must include the political and social relations between countries where your organization operates and your market’s global economic trends.
A global business education may also inform the strategic goals your firm pursues; for instance, expanding into another country where your product could fill an unmet need.
It’s essential to remember that the international business landscape is always evolving. As such, so should your business strategy.
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