Globalizing your business: Why translation is key

Connecting with new customers, entering international markets, and reaching untapped revenue streams are just a few of the benefits globalization offers your business. Their common denominator? A potential for growth that drives countless companies to go beyond their domestic borders, shaping the globalized economy we know today.

But globalizing your operations successfully involves more than simply expanding marketing campaigns or adapting products to local preferences. It also requires navigating international regulatory environments, building partnerships with local companies, and hiring from a global talent pool.

Regardless of your globalization strategy, accurate translation must be a core aspect of your efforts. Translation allows your business to communicate effectively in local languages, enabling you to successfully hire, market, or sell your product across the global economy.

Here, we’ll explore globalization, the benefits and disadvantages of globalizing your company, and exceptional examples of globalization.

Defining globalization

A useful definition for globalization is any process by which countries and businesses connect across international borders, sharing goods, services, ideas, and technologies.

Globalization enables international trade. It’s why you can buy products made halfway across the globe and see trends from other nations impact your daily life. This process is facilitated by trade agreements, which lower trade barriers and help nations exchange resources. By promoting collaboration, globalization creates a more interconnected international economy so businesses and people can freely trade across borders. 

The history of globalization

Globalization has a storied history that stretches back millennia, but modern globalization began to take shape in the 1800s. This first wave of economic globalization spanned about a century, ending in 1914. It was primarily driven by the colonial British Empire and innovations of the Industrial Revolution.

Advances in technology, such as steam engines and industrial weaving machines, allowed the British Empire to quickly transport raw materials, manufacture finished goods, and ship them worldwide via a global trade network. This wave of globalization was eventually interrupted due to rising conflicts and the First World War.

A second wave of globalization emerged following World War II, as the United States assumed a leading economic role in rebuilding the global economy. The U.S. played a significant part in establishing the first General Agreement on Trade and Tariffs (GATT) in 1947, which laid the foundation for modern international trade systems.

This was followed by countless other trade agreements that connected allied countries. Perhaps most notable in the U.S. was the North American Free Trade Agreement (NAFTA), ratified in 1993 between the U.S., Canada, and Mexico. The NAFTA agreement removed international barriers to trade and investment between the three countries, which more than tripled during its implementation.

The World Trade Organization (WTO) followed soon after in 1995, marking the beginning of the third wave of globalization. The WTO created a formal framework for negotiating and formalizing trade agreements, encouraging free trade. Thanks to these agreements, global exports increased from 16% of total gross world product in 1994 to 26% by 2008. A landmark moment in this wave of economic globalization was China’s entry into the World Trade Organization in 2001, helping transform the country into a major player in today’s global market.

Benefits of globalization

Globalization provides numerous benefits for international trade, economic prosperity, and domestic growth. Here are just a few:

1. Enhanced international trade: Free trade agreements allow countries to easily exchange goods and services. As a result, consumers have gained access to more choices, and businesses have reached larger audiences.
2. Economic growth: By opening up markets, globalization allows developing countries to produce and export more goods and services. This trade flow creates economic opportunities and helps improve living standards, reducing global inequality. At the same time, developed countries benefit from goods and services rendered at a lower cost, driving efficiency.
3. Increased foreign direct investment: Globalization attracts multinational corporations to invest in emerging markets. For example, China became a manufacturing and foreign investment hub after joining the World Trade Organization (WTO). This integration into the global economy led to significant economic reforms and international trade liberalization.
4. Advancements in technology: Globalization accelerates innovation by bringing together people and ideas from around the world. Silicon Valley’s partnerships with Indian tech companies have paved the way for major advancements in digital development, from smartphones to cloud computing systems.
5. Cultural globalization: The improved access to goods and services has led to cultural globalization. For example, the global popularity of sushi introduced Japanese culinary traditions to millions of North Americans. Simultaneously, American pop culture elements, from Hollywood films to fast food, have become a staple in countries worldwide. 

Disadvantages of globalization

Economic globalization is a complex and revolutionary process that inevitably leads to some downsides and growing pains. Here are some examples:

1. Job displacement: Globalization has caused the relocation of jobs to countries with lower labor costs, resulting in unemployment in higher-wage nations. For example, many manufacturing jobs in the United States have been outsourced to countries like China and Mexico, leaving American workers without employment opportunities in these industries.
2. Cultural homogenization: The spread of multinational corporations has degraded cultural diversity in some countries. For example, fast-food giants like McDonald’s and Starbucks frequently outcompete family-owned businesses, diluting unique cultural identities.
3. Environmental degradation: In places that prioritize industrial growth, the environment pays the price for the growth of the global economy. For example, Indonesian rainforests are cut down to make way for palm oil plantations to stock U.S. grocery stores.
4. Income inequality: The benefits of economic globalization often end up concentrated in the hands of the wealthy—both individuals and nations—leavingmany middle and lower-class people struggling.
5. Exploitation of labor: To lower production costs, multinational corporations often export their manufacturing needs to countries with weak labor protections. Workers in these regions face massive inequality in working conditions and pay. 

Examples of globalization

Businesses and governments alike undergo globalization to compete in the worldwide economy. These success stories show how to do global business right.

Toyota’s localized strategy

Toyota, a global car manufacturer from Japan, has international factories to better serve local markets as a part of its globalization strategy.

In the United States, for example, Toyota plants in Kentucky and Texas produce popular models, such as the Camry and Tundra. This domestic production helps Toyota meet the preferences of American drivers for larger vehicles. Toyota also localizes its marketing to connect with U.S. audiences, emphasizing ruggedness and reliability in ads for trucks and SUVs, like the Tacoma and 4Runner. 

Apple’s global supply chain

Apple is a multinational corporation that takes advantage of globalization’s powerful benefits. Apple’s iPhone is the product of an extensive global network, with components sourced from 43 countries, including South Korea, Japan, and the United States. These parts are exported and converge primarily in China, where companies like Foxconn assemble the final product.

This global supply chain allows Apple to combine the best technologies worldwide, resulting in the innovative devices we use daily.

European Union (EU) economy

The European Union (EU) began in 1957 as a small economic agreement between six countries to prevent future conflicts through economic cooperation. Today, it has grown into a group of 27 nations working together on politics and economics. By removing trade and travel barriers, the EU allows goods, services, and people to move freely across borders, boosting economic growth.

Since its inception, the EU’s single market has expanded to include over 440 million people, and its GDP has grown to become one of the largest in the world.

Build a globalized business with Smartling

Achieving globalization requires tools that streamline the process of adapting to international markets while maintaining quality standards.

Accurate translation is vital, especially in the digital sphere, as businesses must communicate efficiently with partners and customers from various backgrounds. Many companies struggle to adapt content to international markets while maintaining a distinct brand identity. They need precision, cultural understanding, and expert assistance to create a unique global presence.

Smartling addresses these challenges with a suite of translation offerings, including AI-powered translation solutions and professional translation services. Smartling’s AI translation is a cost-effective solution to help your brand easily expand its global presence, as it empowers you to deliver cost-effective, high quality localized content at a large scale.

With proprietary LanguageAI™ software and a best-in-class translation management platform, Smartling can help you stay ahead of the competition, reducing your translation turnaround time from weeks to hours. 

Want to get up to speed on how today’s top global brands localize their content? Download our State of Translation Report to get a picture of the current state of the translation industry and where it’s headed.

Connecting with new customers, entering international markets, and reaching untapped revenue streams are just a few of the benefits globalization offers your business. Their common denominator? A potential for growth that drives countless companies to go beyond their domestic borders, shaping the globalized economy we know today.

But globalizing your operations successfully involves more than simply expanding marketing campaigns or adapting products to local preferences. It also requires navigating international regulatory environments, building partnerships with local companies, and hiring from a global talent pool.

Regardless of your globalization strategy, accurate translation must be a core aspect of your efforts. Translation allows your business to communicate effectively in local languages, enabling you to successfully hire, market, or sell your product across the global economy.

Here, we’ll explore globalization, the benefits and disadvantages of globalizing your company, and exceptional examples of globalization.

Defining globalization

A useful definition for globalization is any process by which countries and businesses connect across international borders, sharing goods, services, ideas, and technologies.

Globalization enables international trade. It’s why you can buy products made halfway across the globe and see trends from other nations impact your daily life. This process is facilitated by trade agreements, which lower trade barriers and help nations exchange resources. By promoting collaboration, globalization creates a more interconnected international economy so businesses and people can freely trade across borders. 

The history of globalization

Globalization has a storied history that stretches back millennia, but modern globalization began to take shape in the 1800s. This first wave of economic globalization spanned about a century, ending in 1914. It was primarily driven by the colonial British Empire and innovations of the Industrial Revolution.

Advances in technology, such as steam engines and industrial weaving machines, allowed the British Empire to quickly transport raw materials, manufacture finished goods, and ship them worldwide via a global trade network. This wave of globalization was eventually interrupted due to rising conflicts and the First World War.

A second wave of globalization emerged following World War II, as the United States assumed a leading economic role in rebuilding the global economy. The U.S. played a significant part in establishing the first General Agreement on Trade and Tariffs (GATT) in 1947, which laid the foundation for modern international trade systems.

This was followed by countless other trade agreements that connected allied countries. Perhaps most notable in the U.S. was the North American Free Trade Agreement (NAFTA), ratified in 1993 between the U.S., Canada, and Mexico. The NAFTA agreement removed international barriers to trade and investment between the three countries, which more than tripled during its implementation.

The World Trade Organization (WTO) followed soon after in 1995, marking the beginning of the third wave of globalization. The WTO created a formal framework for negotiating and formalizing trade agreements, encouraging free trade. Thanks to these agreements, global exports increased from 16% of total gross world product in 1994 to 26% by 2008. A landmark moment in this wave of economic globalization was China’s entry into the World Trade Organization in 2001, helping transform the country into a major player in today’s global market.

Benefits of globalization

Globalization provides numerous benefits for international trade, economic prosperity, and domestic growth. Here are just a few:

1. Enhanced international trade: Free trade agreements allow countries to easily exchange goods and services. As a result, consumers have gained access to more choices, and businesses have reached larger audiences.
2. Economic growth: By opening up markets, globalization allows developing countries to produce and export more goods and services. This trade flow creates economic opportunities and helps improve living standards, reducing global inequality. At the same time, developed countries benefit from goods and services rendered at a lower cost, driving efficiency.
3. Increased foreign direct investment: Globalization attracts multinational corporations to invest in emerging markets. For example, China became a manufacturing and foreign investment hub after joining the World Trade Organization (WTO). This integration into the global economy led to significant economic reforms and international trade liberalization.
4. Advancements in technology: Globalization accelerates innovation by bringing together people and ideas from around the world. Silicon Valley’s partnerships with Indian tech companies have paved the way for major advancements in digital development, from smartphones to cloud computing systems.
5. Cultural globalization: The improved access to goods and services has led to cultural globalization. For example, the global popularity of sushi introduced Japanese culinary traditions to millions of North Americans. Simultaneously, American pop culture elements, from Hollywood films to fast food, have become a staple in countries worldwide. 

Disadvantages of globalization

Economic globalization is a complex and revolutionary process that inevitably leads to some downsides and growing pains. Here are some examples:

1. Job displacement: Globalization has caused the relocation of jobs to countries with lower labor costs, resulting in unemployment in higher-wage nations. For example, many manufacturing jobs in the United States have been outsourced to countries like China and Mexico, leaving American workers without employment opportunities in these industries.
2. Cultural homogenization: The spread of multinational corporations has degraded cultural diversity in some countries. For example, fast-food giants like McDonald’s and Starbucks frequently outcompete family-owned businesses, diluting unique cultural identities.
3. Environmental degradation: In places that prioritize industrial growth, the environment pays the price for the growth of the global economy. For example, Indonesian rainforests are cut down to make way for palm oil plantations to stock U.S. grocery stores.
4. Income inequality: The benefits of economic globalization often end up concentrated in the hands of the wealthy—both individuals and nations—leavingmany middle and lower-class people struggling.
5. Exploitation of labor: To lower production costs, multinational corporations often export their manufacturing needs to countries with weak labor protections. Workers in these regions face massive inequality in working conditions and pay. 

Examples of globalization

Businesses and governments alike undergo globalization to compete in the worldwide economy. These success stories show how to do global business right.

Toyota’s localized strategy

Toyota, a global car manufacturer from Japan, has international factories to better serve local markets as a part of its globalization strategy.

In the United States, for example, Toyota plants in Kentucky and Texas produce popular models, such as the Camry and Tundra. This domestic production helps Toyota meet the preferences of American drivers for larger vehicles. Toyota also localizes its marketing to connect with U.S. audiences, emphasizing ruggedness and reliability in ads for trucks and SUVs, like the Tacoma and 4Runner. 

Apple’s global supply chain

Apple is a multinational corporation that takes advantage of globalization’s powerful benefits. Apple’s iPhone is the product of an extensive global network, with components sourced from 43 countries, including South Korea, Japan, and the United States. These parts are exported and converge primarily in China, where companies like Foxconn assemble the final product.

This global supply chain allows Apple to combine the best technologies worldwide, resulting in the innovative devices we use daily.

European Union (EU) economy

The European Union (EU) began in 1957 as a small economic agreement between six countries to prevent future conflicts through economic cooperation. Today, it has grown into a group of 27 nations working together on politics and economics. By removing trade and travel barriers, the EU allows goods, services, and people to move freely across borders, boosting economic growth.

Since its inception, the EU’s single market has expanded to include over 440 million people, and its GDP has grown to become one of the largest in the world.

Build a globalized business with Smartling

Achieving globalization requires tools that streamline the process of adapting to international markets while maintaining quality standards.

Accurate translation is vital, especially in the digital sphere, as businesses must communicate efficiently with partners and customers from various backgrounds. Many companies struggle to adapt content to international markets while maintaining a distinct brand identity. They need precision, cultural understanding, and expert assistance to create a unique global presence.

Smartling addresses these challenges with a suite of translation offerings, including AI-powered translation solutions and professional translation services. Smartling’s AI translation is a cost-effective solution to help your brand easily expand its global presence, as it empowers you to deliver cost-effective, high quality localized content at a large scale.

With proprietary LanguageAI™ software and a best-in-class translation management platform, Smartling can help you stay ahead of the competition, reducing your translation turnaround time from weeks to hours. 

Want to get up to speed on how today’s top global brands localize their content? Download our State of Translation Report to get a picture of the current state of the translation industry and where it’s headed.Connecting with new customers, entering international markets, and reaching untapped revenue streams are just a few of the benefits globalization offers your business. Their common denominator? A potential for growth that drives countless companies to go beyond their domestic borders, shaping the globalized economy we know today.
But globalizing your operations successfully involves more than simply expanding marketing campaigns or adapting products to local preferences. It also requires navigating international regulatory environments, building partnerships with local companies, and hiring from a global talent pool.
Regardless of your globalization strategy, accurate translation must be a core aspect of your efforts. Translation allows your business to communicate effectively in local languages, enabling you to successfully hire, market, or sell your product across the global economy.
Here, we’ll explore globalization, the benefits and disadvantages of globalizing your company, and exceptional examples of globalization.
Defining globalization
A useful definition for globalization is any process by which countries and businesses connect across international borders, sharing goods, services, ideas, and technologies.
Globalization enables international trade. It’s why you can buy products made halfway across the globe and see trends from other nations impact your daily life. This process is facilitated by trade agreements, which lower trade barriers and help nations exchange resources. By promoting collaboration, globalization creates a more interconnected international economy so businesses and people can freely trade across borders. 
The history of globalization
Globalization has a storied history that stretches back millennia, but modern globalization began to take shape in the 1800s. This first wave of economic globalization spanned about a century, ending in 1914. It was primarily driven by the colonial British Empire and innovations of the Industrial Revolution.
Advances in technology, such as steam engines and industrial weaving machines, allowed the British Empire to quickly transport raw materials, manufacture finished goods, and ship them worldwide via a global trade network. This wave of globalization was eventually interrupted due to rising conflicts and the First World War.
A second wave of globalization emerged following World War II, as the United States assumed a leading economic role in rebuilding the global economy. The U.S. played a significant part in establishing the first General Agreement on Trade and Tariffs (GATT) in 1947, which laid the foundation for modern international trade systems.
This was followed by countless other trade agreements that connected allied countries. Perhaps most notable in the U.S. was the North American Free Trade Agreement (NAFTA), ratified in 1993 between the U.S., Canada, and Mexico. The NAFTA agreement removed international barriers to trade and investment between the three countries, which more than tripled during its implementation.
The World Trade Organization (WTO) followed soon after in 1995, marking the beginning of the third wave of globalization. The WTO created a formal framework for negotiating and formalizing trade agreements, encouraging free trade. Thanks to these agreements, global exports increased from 16% of total gross world product in 1994 to 26% by 2008. A landmark moment in this wave of economic globalization was China’s entry into the World Trade Organization in 2001, helping transform the country into a major player in today’s global market.
Benefits of globalization
Globalization provides numerous benefits for international trade, economic prosperity, and domestic growth. Here are just a few:
Enhanced international trade: Free trade agreements allow countries to easily exchange goods and services. As a result, consumers have gained access to more choices, and businesses have reached larger audiences.
Economic growth: By opening up markets, globalization allows developing countries to produce and export more goods and services. This trade flow creates economic opportunities and helps improve living standards, reducing global inequality. At the same time, developed countries benefit from goods and services rendered at a lower cost, driving efficiency.
Increased foreign direct investment: Globalization attracts multinational corporations to invest in emerging markets. For example, China became a manufacturing and foreign investment hub after joining the World Trade Organization (WTO). This integration into the global economy led to significant economic reforms and international trade liberalization.
Advancements in technology: Globalization accelerates innovation by bringing together people and ideas from around the world. Silicon Valley’s partnerships with Indian tech companies have paved the way for major advancements in digital development, from smartphones to cloud computing systems.
Cultural globalization: The improved access to goods and services has led to cultural globalization. For example, the global popularity of sushi introduced Japanese culinary traditions to millions of North Americans. Simultaneously, American pop culture elements, from Hollywood films to fast food, have become a staple in countries worldwide. 
Disadvantages of globalization
Economic globalization is a complex and revolutionary process that inevitably leads to some downsides and growing pains. Here are some examples:
Job displacement: Globalization has caused the relocation of jobs to countries with lower labor costs, resulting in unemployment in higher-wage nations. For example, many manufacturing jobs in the United States have been outsourced to countries like China and Mexico, leaving American workers without employment opportunities in these industries.
Cultural homogenization: The spread of multinational corporations has degraded cultural diversity in some countries. For example, fast-food giants like McDonald’s and Starbucks frequently outcompete family-owned businesses, diluting unique cultural identities.
Environmental degradation: In places that prioritize industrial growth, the environment pays the price for the growth of the global economy. For example, Indonesian rainforests are cut down to make way for palm oil plantations to stock U.S. grocery stores.
Income inequality: The benefits of economic globalization often end up concentrated in the hands of the wealthy—both individuals and nations—leavingmany middle and lower-class people struggling.
Exploitation of labor: To lower production costs, multinational corporations often export their manufacturing needs to countries with weak labor protections. Workers in these regions face massive inequality in working conditions and pay. 
Examples of globalization
Businesses and governments alike undergo globalization to compete in the worldwide economy. These success stories show how to do global business right.
Toyota’s localized strategy
Toyota, a global car manufacturer from Japan, has international factories to better serve local markets as a part of its globalization strategy.
In the United States, for example, Toyota plants in Kentucky and Texas produce popular models, such as the Camry and Tundra. This domestic production helps Toyota meet the preferences of American drivers for larger vehicles. Toyota also localizes its marketing to connect with U.S. audiences, emphasizing ruggedness and reliability in ads for trucks and SUVs, like the Tacoma and 4Runner. 
Apple’s global supply chain
Apple is a multinational corporation that takes advantage of globalization’s powerful benefits. Apple’s iPhone is the product of an extensive global network, with components sourced from 43 countries, including South Korea, Japan, and the United States. These parts are exported and converge primarily in China, where companies like Foxconn assemble the final product.
This global supply chain allows Apple to combine the best technologies worldwide, resulting in the innovative devices we use daily.
European Union (EU) economy
The European Union (EU) began in 1957 as a small economic agreement between six countries to prevent future conflicts through economic cooperation. Today, it has grown into a group of 27 nations working together on politics and economics. By removing trade and travel barriers, the EU allows goods, services, and people to move freely across borders, boosting economic growth.
Since its inception, the EU’s single market has expanded to include over 440 million people, and its GDP has grown to become one of the largest in the world.
Build a globalized business with Smartling
Achieving globalization requires tools that streamline the process of adapting to international markets while maintaining quality standards.
Accurate translation is vital, especially in the digital sphere, as businesses must communicate efficiently with partners and customers from various backgrounds. Many companies struggle to adapt content to international markets while maintaining a distinct brand identity. They need precision, cultural understanding, and expert assistance to create a unique global presence.
Smartling addresses these challenges with a suite of translation offerings, including AI-powered translation solutions and professional translation services. Smartling’s AI translation is a cost-effective solution to help your brand easily expand its global presence, as it empowers you to deliver cost-effective, high quality localized content at a large scale.
With proprietary LanguageAI™ software and a best-in-class translation management platform, Smartling can help you stay ahead of the competition, reducing your translation turnaround time from weeks to hours. 
Want to get up to speed on how today’s top global brands localize their content? Download our State of Translation Report to get a picture of the current state of the translation industry and where it’s headed.