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      Difference between Globalization and Internationalization

      Kevin Gurley by Kevin Gurley
      March 16, 2022
      Reading Time: 6 mins read
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      Difference between Globalization and Internationalization

      When most people hear the word “globalization,” they think of the process of expanding a company or organization to have a global presence. However, globalization is much more than that. It is a social, political and economic movement that aims to dominate the global scale. On the other hand, internationalization is adapting a product or service to be used in multiple countries. While both globalization and Internationalization share some common goals, there are also some key differences between them. In this blog post, we will explore those differences.

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      What is Globalization?

      Globalization is the “process of interaction and integration among people, companies, and governments worldwide” [Source]. Globalization is a “word used to describe the growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information” [Source].

      Effects of Globalization

      Globalization has enacted both positive and negative effects. For instance, socially, globalization has opened interactions and relations between people, which helped strengthen tolerance of diverse practices in society. Due to globalization, minority groups can express themselves and be recognized globally. In terms of economy, companies collaborated on various projects and sold products worldwide, thus increasing finances. Citizens in undeveloped nations can travel to developed countries and pursue their carries.

      On the downside, globalization has dire effects on the environment. With the ongoing advancement of technology, globalization has forced people to focus on manufacturing while polluting the environment. The world seems to be moving towards a connected entity that dissolves distinctive cultures and traditions. Many people want to pursue an ‘international’ life.

      Benefits of Globalization

      The benefits of globalization for businesses are vast. With globalization, businesses have access to new markets, increasing revenue and profits. Additionally, businesses can take advantage of lower production costs in other countries. Globalization also leads to increased competition, which forces businesses to be more innovative and efficient. And lastly, globalization allows businesses to build stronger relationships with suppliers and customers worldwide.

      What are the advantages of Globalization for Consumers?

      Globalization has also led to lower prices for consumers. When businesses have access to new markets, they can source goods and materials at lower costs, which leads to lower prices for consumers. Additionally, globalization has increased the availability of information and knowledge. It’s easier for consumers to find desired products and services. With the click of a button, consumers can shop, compare and find the best deals on everything from clothes to electronics. And lastly, globalization has increased the availability of goods and services.

      What are the advantages of Globalization for Society?

      Globalization has led to increased cultural understanding and tolerance. With people from all over the world interacting with each other daily, there is a greater understanding and appreciation of different cultures.

      What is Internationalization?

      Internationalization is a “corporate strategy that involves making products and services as adaptable as possible, so they can easily enter different national markets” [Source]. It helps make a product or service more adaptable to the global market. 

      Effects of Internationalization

      The effects of Internationalization include making businesses boom as they can penetrate more markets across the globe. Internationalization enables service providers to get more customers in various countries and create needed products in communities. Because of Internationalization, corporates are rushing to produce the best products that can meet international standards. 

      However, fixating on internalization has caused the exportation of dangerous products and services to societies. Also, it puts a lot of pressure on the economy if it fails to meet the required standards. Business people have to invest a lot of money to ensure that their products reach the ends of the earth. 

      Benefits of Internationalization

      Internationalization has increased customers to business owners, and they are getting significant profits. It has also enhanced the teaching and learning processes [Source] and developed science studies and technology advancements. New markets were opened, and decentralization of services was undertaken because of Internationalization.

      Globalization and Internationalization differences

      Globalization is explained as operating on a global scale, and internalization is the “process of making product content adaptable so that it can be easily localized in multiple languages”. Notable differences between globalization and Internationalization are that internalization is part of globalization. Also, “Globalization is the end result while internationalization is one of the tasks/tools/processes to achieve them” [Source]. Globalization is usually carried out by a nation, while Internationalization is linked to a business or corporate. “Globalization is a process, and internationalization is part of the same”. Local traditions’ cultural tastes and preferences affect Internationalization, but globalization is affected by infrastructural and logistics setup and telecommunications. 

      It is noted that “Globalization is an economic process as it aims to integrate the economies while Internationalization is an improvisation process as it will expand the business across the nations”. 

      “Globalization is, in essence, the interconnectedness and interdependencies of countries and regions”, and Internationalization is the “process of enterprises having an increasing involvement in international markets instead of local markets” [Source].

      Globalization and Internationalization similarities

      The link between globalization and Internationalization is that Internationalization is part of globalization. These two are used as synonyms in some instances to show a move on a global scale. Both globalization and Internationalization open new markets worldwide and amass more customers. This means business people can reap many financial benefits under these economic movements. As economic and social movements, they both operate globally and seek to dominate the global markets. 

      What are the differences between Global South and Third World?

      Third World “historically refers to countries aligned neither with the communist Eastern bloc of countries nor with the capitalist West during the Cold War. This includes countries as diverse as Botswana, India and Sweden,” while Global South “is generally used in the context of the economic and developmental disparity between countries in the northern and southern hemispheres. The proportion of developed countries is far higher in the northern hemisphere than in the South, hence the term” [Source].

      Global South seems to encompass everything in the south, specifically low-income nations and Third World point to developing countries. Wikipedia notes that the term Third World was replaced by Global South [Source].

      What is the difference between Global South and Global North?

      “The Global North represents the economically developed countries of Europe, North America, Australia, and Israel, among others (Odeh, 2012). On the contrary, the Global South includes the less economically stable countries of Africa, India, China, South East Asia, Central and South America, among others” [Source].

      Kevin Gurley

      Kevin Gurley

      Photography, fine art, and yoga.

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