Globalization in business refers to the spread of financial products, goods, technology, information, and jobs abroad, even penetrating cultural differences. Another thing that is affected by this issue is social since the interaction between individuals is getting wider. In addition, it led to the formation of intergovernmental organizations such as the United Nations (UN) and the World Trade Organization (WTO). It turns out to have a domino effect as legality in the form of changes in international law is also affected.
The impact of globalization on business causes the interdependence of a nation to conduct free trade around the world. In practice, corporations can reduce operating costs by processing their products overseas, purchasing cheaper raw materials from the first source, and ultimately they can reach a wider range of consumers in the new places they develop.
It seems that globalization in business has increased international competition, so that the original industry in a country with a traditional system, such as corn farming in Mexico, is experiencing severe disruption. However, this issue is actually idealistic and opportunistic if the management is based in the Western with a mixed employee, eliminating cultural boundaries, and cooperating with small businesses around the world.
The concept of globalization has actually been used since the Industrial Revolution in the 19th century which stimulated the development of transportation and communication. According to the Peterson Institute for International Economics (PIIE), World War I brought this issue to a halt through the provision of protectionism in the form of import taxes. The negative effects of this policy gave rise to the phenomenon of the Great Depression and World War II. Eventually, the U.S. took over international trade policy to cope with the problem.
The North American Free Trade Agreement (NAFTA) which was formed in 1993, then changed its name to the United States Mexico Canada Agreement seven years later plays an important role in globalization which assists the trade process between America and Mexico. This step was also adapted by other countries through the procurement of fiscal policies.
Globalization in business is very beneficial for developing countries to compete in the international market. As a result, their standards of living can increase. Outsourcing by companies and social justice will also complement this positive effect.
The impact of globalization on business resembles a domino effect when the powerful country in a trade partner experiences an economic downturn. This phenomenon occurred in 2008 when Portugal, Ireland, Greece, and Spain experienced a severe impact because they were members of the European Union. It can be concluded that the industry in small countries will also be left behind.
Especially for the U.S., globalization in business has a deeper impact where the middle-class industry closes all of its production by moving it abroad. In addition, there are products that are homogenized or dominant around the world such as Starbucks.
Affecting the modern era and the relationships that exist between countries are the two main things that will be the strongest motivation in globalization in business. However, referring to the negative and positive effects, which one is more relevant? It all depends on what products are marketed, but the original industry of a country will experience a setback if it is not accompanied by good management and marketing.
As with the impact on society, there are two points of view that need to be considered. To obtain the best income, they will do massive migrations from rural to industrial or urban areas. Furthermore, from these urbanizations, problems such as increasing crime have arisen.
Now the question is, what can support the globalization process so that it can increase the level of the economy either on a corporate or individual scale? Along with different cultures, then language is a means to eliminate these differences.
Bluntly, the impact of globalization on the translation industry is solid proof that language can unite people from all over the world. The emergence of translation agencies is like a mushroom that thrives with the competitive services they offer.
Taking a simple example of globalization such as car production in the U.S. where the components are imported from several countries such as China, Korea, and Japan. Then, the car is exported to Europe and its buyer refuel for their vehicles which they procured from Saudi. There is a communication process both written and verbal until a product can be used by consumers. This is where the translation industry plays an important role, not only in the process before and during production, but after. For instance, by making a manual book that will be given when buying a car or other product that requires special instructions.
All in all, globalization in business not only has an impact on economic growth, but also the “spread” of language according to the target market. It cannot be denied that the impact of globalization on the translation industry is like a unit that complements each other to reach more opportunities.