Globalization is a term most businesses recognize as it refers to the process of expanding their goods and services into foreign markets. Globalization allows companies to expand their scale of operation and increase economic growth. It also lets them reduce costs and take advantage of economies of scale.
One of the most prominent examples of globalization today is the restaurant chain McDonald’s, which sells its products worldwide and accommodates its product lines to match the consumer needs of the country they’ve moved into. However, globalization has disadvantages, such as the potential for systemic risk and how richer countries often benefit the most from it. In recent years, a new term has emerged, and that’s digital globalization.
What Is Digital Globalization?
Digital globalization is a broad term, but it often refers to how digital platforms have changed the economic landscape by allowing companies to conduct online business activities in different cities and countries. A great example of this is the online casino and sports betting industry since many businesses are launching online sites in different markets across the world.
For instance, BetRivers is an online sportsbook with operations in different states in the US, and the sportsbook’s latest venture is in the state of Ohio. BetRivers is launching a sportsbook in the state in January 2023, and BetRivers has some great bonus codes for Ohio gamblers in an attempt to promote the launch. This includes a promo code that allows gamblers to claim sign-up bonuses.
Promotion is crucial in any form of globalization, but when it is done digitally, the reach of these bonuses or events is even higher. Consumers can share these promotions on social media platforms rather than just through word-of-mouth.
More Examples of Globalization
Another prominent example of digital globalization is the eCommerce market. Online marketplaces like Amazon and eBay have allowed companies to move into foreign markets by developing their online presence. Now, smaller companies can sell their products to foreign consumers without ever having to pack up shop and move to that country or city to compete in the market.
That includes companies in developing countries, which have been able to overcome local constraints and connect with customers worldwide. According to Amazon, there are almost 30,000 small and medium-sized companies selling their products on Amazon Storefront. Not only has this allowed these businesses to increase their target audience, but Amazon also states that these companies have been able to add more jobs.
Globalization is incredibly important, and the Internet is one of its biggest contributors, which is why people talk about digital globalization. It is important for many reasons, just like why social media marketing through sites such as TikTok is important for businesses looking to generate brand awareness.
While globalization is often linked to industries like oil, pharmaceutical, auto, and food and beverage, digital globalization has brought industries like retail and online gambling into the picture. While important and inevitable due to technology blurring boundaries and borders, we do have to consider the risks of globalization and its effects on certain markets.