However, the reality on the field is much more complex. Companies face cultural, regulatory and language barriers, which can make expansion into new markets challenging.
For example, opening a branch office in a foreign country requires:
- an accurate analysis of local economic conditions
- an understanding of business practices
- an understanding of local laws
The price of homogenisation
Another critical aspect of economic globalisation is the trend toward homogenisation of products and services. While this may seem like an initial advantage, as it allows companies to reach a wider audience, it also leads to the loss of cultural diversity and local identity. Globalised products often suppress the authenticity and creativity of local productions, creating a uniform and homogenised world.
