Globalization is quickly becoming one of the biggest influences on corporate communications.
As the world’s economies become more interconnected, companies must find new ways to communicate with their customers in other countries. These new forms of global communication are called cross-cultural or intercultural communication, and it is a unique situation that few companies are not involved in at some level.
What Globalization Means for Corporate Communications
Much of today’s corporate communications revolve around transnational business, where companies have operations around the world and operate in a global environment. In such situations, multinational companies need to communicate with their customers and other organizations across borders.
Globalization has led to organizations adopting a more global perspective, resulting in a change in the way global businesses are conducted across geographic boundaries.
This article explains what globalization means for corporate communications and why it is important to understand this concept.
To succeed in global markets, companies must communicate effectively across national and cultural boundaries. This requires employees with a high level of cross-cultural awareness, including knowledge of the language barrier, customs, etiquette, and history. Companies also need to be aware of cultural differences when negotiating contracts or selling products abroad. For example, what is considered acceptable business attire in one country may be considered inappropriate in a foreign country.
Globalization has changed the language barrier, culture, and way of life of people in different parts of the world. It has become one of the most important factors in the development of today’s global economy.
Today, there are more than 1.5 billion English speakers worldwide, and this number is rapidly increasing. This is due to the increasing links between countries in terms of trade, supply chains, and communication.
Cultural Awareness and Cultural Globalization
In the past, when globalization did not exist, people were less aware of the cultural differences of people from other nations. They did not know what was happening in other parts of the world.
Today, people are well informed about the different regions and cultures in all parts of the world because they can easily get information through the Internet.
Cultural Globalization has influenced our organizational communication to a great extent. It has also raised our cultural awareness about cultural barriers all over the world.
Globalization has brought people from different countries together on a single platform.
With the internet, it’s become easier to learn about a different culture: now a person from a different country can interact with another which helps her improve her intercultural communication. Cross-culture communication also gives people an opportunity to learn about the customs, traditions, and lifestyles of a foreign country.
Everyone involved in international business needs to understand the culture they are dealing with if they want to negotiate successfully.
In international business communication, it is important to have political awareness.
Just as you would not want to offend a potential client in the United States by talking politics at a business meeting, you should avoid certain topics in other countries unless you know you’ll be among people who share your views and will support you when things get heated.
Still, for global business purposes, it can be helpful to have a basic understanding of world politics.
For example, you may need to know something about the following issues:
- The European Union (EU) is an economic and political union that includes 27 member states across Europe. The EU has a common currency – the euro – and shares many laws and regulations across borders.
- The Association of Southeast Asian Nations (ASEAN) is an intergovernmental organization that includes ten countries in Southeast Asia. It promotes intergovernmental cooperation and facilitates economic, political, security, military, educational, and sociocultural integration among its members and other countries in Asia. It also maintains regular contacts with other countries in the Asia-Pacific region and beyond.
- The African Union (AU) is a continental union composed of all 55 countries on the African continent. The African Union Commission, the executive body of the AU, is based in Addis Ababa, Ethiopia. The goal of the AU is to achieve unity and solidarity among African countries and Africans.
- The Union of South American Nations (USAN) is an intergovernmental regional organization that includes 12 South American countries and whose main goal is to promote and deepen South American integration through the cooperation of all the countries of the continent.
- The Gulf Cooperation Council (GCC) is a political and economic association of Arab countries bordering the Gulf. The GCC includes six countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. They cooperate in military affairs, economic development and trade, social and cultural affairs, scientific research, and technical progress in the fields of industry, water, agriculture, mining, and animal resources.
Another great way to understand global politics is to check the United Nations organizations’ websites.
International Trade and Economic Globalization
Globalization is transforming our world into a “global village.” In recent decades, international trade and cross-border investment have increased dramatically, and technological advances are making it easier for companies to communicate with each other and with their customers.
One of the driving forces behind this trend is the increase in bilateral trade agreements between countries. Some of these agreements eliminate or reduce tariffs, making it cheaper for companies to export their products to other countries. It also gives them access to new markets, which increases sales and helps create jobs and business opportunities.
Many countries have laws that restrict the import and export of certain goods. These trade barriers are designed to protect local manufacturers from foreign competition by raising the prices of goods imported from other countries. For this reason, companies doing business abroad must be mindful of them when negotiating.
On the websites of the World Trade Organization (WTO) and the World Bank, you will find a lot of interesting information about the global market and global business, the global economy, and the developing countries.
We live in a world of constant technological advancement.
Gone are the days when people communicated with each other by sending letters or meeting in person. Today, we can stay in touch with our friends and family members who live thousands of miles away with the simple click of a mouse. We can chat on social media, send messages on Viber and What’s App, make video calls on Skype, etc. This has definitely changed the way people interact with each other on a daily basis.
This is also the case in the business world. Business communication has also changed. Technology enables developed and developing nations, to have more effective communication tools. For example, it used to take weeks for companies to find partners to do business with around the world. Today, these negotiations can be conducted within hours or even minutes via instant messaging services such as Skype or Zoom.
We live in a globalized world where the distances between people from different parts of the world have become shorter than ever before due to the development of technology.
Globalization has led to increased competition.
The ability of a company to compete successfully in the global economy depends on its ability to produce better and cheaper products than its foreign competitors.
In many ways, this also affects our business communications:
It requires a multifaceted corporate communications strategy that comprehensively covers all aspects of marketing, production, human resources, and finance.
A clearly defined corporate communications structure must be maintained with the help of an efficient internal communications system that effectively relays information up and down the organizational hierarchy.
In the face of fierce competition, rapid decision-making is required, which can be ensured by effective upward and downward communication within the organization.
The business environment has become very unpredictable due to fierce competition from domestic and international players; therefore, a wide network of contacts at the personal and professional levels must be established to obtain timely information on changing trends in the market environment.
Good interpersonal skills are important to create a positive image of your company, which will give your brand identity in the global marketplace.
With the increasing importance of global issues, it is inevitable in most companies to avoid the topic of social impact in our corporate communications. Therefore, it is important to educate yourself on how globalization and social impact affect businesses, whether they are large or small.
Marketing has changed dramatically in recent decades due to an increasingly globalized world. As more companies expand their business and focus on international markets, there are a whole new set of challenges to consider.
In addition, digital technology has become ubiquitous. These forces have shaped the way we think about marketing today.
The Internet and social media have opened up new ways for companies to reach consumers and vice versa, creating a feedback loop in which both companies and consumers are constantly changing their behavior.
There are three important factors that have contributed to this change:
Social media: social media play a major role in the way we communicate with each other today. They allow us to share information quickly and easily and interact with brands in real-time.
This creates a constant conversation between brands and their customers, which can be both positive and negative for companies, depending on how they handle it.
Mobile technology: nowadays, mobile devices are ubiquitous – smartphones, tablets, smartwatches, and so on. These devices allow people to access information anytime, anywhere, which means businesses need to adapt their external communication accordingly (eg: global marketplace, business opportunities, etc.).
Globalization has changed the face of public relations, not only its face but also the way it is conducted. For example, a company in the United States has to compete with another company from China that is offering the exact same product at a lower price and with better quality.
Therefore, it is essential for companies to have a proper plan and strategy to ensure that they are successful in their efforts. This is where public relations comes into play.
The role of public relations has become essential for businesses to survive and thrive in this competitive business environment.
A company can no longer rely solely on advertising and marketing campaigns to reach its target audience. They must use other means such as public events, meetings, and conferences, as well as social media platforms such as Facebook, Twitter, and YouTube to get their message out. In fact, many companies are now turning to social media platforms to increase their customer base and brand awareness among consumers.
What Does the Future Hold for Corporate Communications?
As technology advances, we will use more virtual and augmented reality. The future of corporate global communication will be in this area. It will create a completely different corporate environment. Social impact will also be a growing issue as global issues increase.
Here are some of the trends to watch out for:
- Social impact: With younger generations more socially aware than ever before, social impact will become one of the most important international communication topics. Companies should focus not only on promoting their products and services, but also on how they contribute to society.
- Dynamic storytelling: The way companies communicate has become much more dynamic. Companies no longer rely solely on press releases or video clips to tell their stories; instead, there is more emphasis on original content that can be received by audiences in a variety of ways.
- More virtual reality (VR) and augmented reality (AR): the technological advances we are seeing mean that VR and AR are being used more and more in global communication campaigns. These technologies offer new perspectives on internal and external communication, and allow audiences to interact with brands in more engaging ways.
Harvard Business Review: Communicating Authentically in a Virtual World