Guest post by Ivan Serrano
With so many businesses pushing the digital side of their strategies, globalization is rapidly becoming less of a goal to reach toward and more of a necessity for survival. It’s easy for us to consider the ramifications and challenges that are part of globalizing from an American point of view, but that kind of closed-mindedness is counterintuitive to having a presence globally.
One of the other biggest players in the field of global business, China, faces its own set of problems and hurdles. Though culturally and geographically the two countries are worlds apart, they are slowly learning how to co-exist and build off of each other’s strengths in order to run a smarter, better business.
The Kings of Capitalism: America’s Global Presence
Since the dawn of the 20th century, the United States has given less interest toward physically expanding its borders and more interest in being a hub for exporting culture. Countries around the world bemoan the homogenizing and “Americanizing” of their nations, and a big part of that process stems from the availability of American products and services.
This process has helped keep America stable and functioning even in trying political and economic times, but the associated costs are telling. The popular opinion is that America needs to reduce its dependency on other countries and establish independence once more, this time on the economic front, but in a lot of ways the damage has been done.
America’s prosperity is due in large part to the quality of its products and the desirability of its perceived lifestyle overseas, something that draws both positive and negative attention. The idea of withdrawing that network and becoming isolationist seems like doom for a country that has become largely post-industrialist.
China’s Rapid Growth into an Ever Present Commercial Empire
Meanwhile, China’s resources and national policies set the stage for it to launch itself as a supplier of parts and labor, two things it can create in abundance. Where America has elected to focus more on service and intangibles, countries like China (where wages are low and regulations are scarce) put it in a position to supply the demands of others.
While some move to put an end to Chinese practices, doing so would come at a great cost to the entire global economy. China’s role as a supplier of electronics, manufacturing, and labor is something that has strengthened it to its present state. Reducing that role in any way would cripple China first, and then leave a dramatic mark on the costs of doing business all over the world.
Like America, the world has become dependent on China for that which it does best, and China embraces its role accordingly, reaping the international business to strengthen its own domestic economy.
The Global Synergy Between America and China
Right away, the lines linking these two countries to each other and to the world are clear to see. American engineers and scientists may come up with the idea for the next electronic advancement, but it’s up to China to produce it en masse — and not just for the two countries themselves, but for every country that can’t wait to get its hands on it.
America, China, and any other nation that conducts widespread global business fits on this or several other sorts of global supply chains. While it’s a broad and general way to look at things, global business has allowed technology and commodities to strengthen everywhere, as countries that can handle one aspect of the process cooperate with another seemingly tailored to share the load.
While certain industries may not be able to benefit from globalizing due to restrictions or regulations, you tend to see rapid growth and innovation across the board from any industry that positions itself to develop globally.
Ivan Serrano is a writer with a passion for global marketing. You can read more of his work at 1800NumberNow.com.