Introduction
Technology has played a crucial role in the growth of International Business across countries. The rise in technology and AI are early signs of how it’s going to engulf every walk of life in the modern world. For International Business, technology has ensured how brands and companies have smoothly entered newer territories and markets around the world.
Technological mediums like Zoom or Google Meet enabled business partners from around the globe to communicate and stay in touch even during periods of minimal travel i.e. COVID-19. This reduced the time and energy that was required previously to conduct business meetings. Therefore, the business expansion never stopped; it only increased manifolds, thanks to newer, more effective technology in global economy.
The spread of the Internet to far-sprung corners of the world also speaks about the might of technological advancements in business. This will now allow International Business to operate in and around areas where it had never gone before. To further explore the role of technology in International Business and how it has already significantly impacted the field, let’s dive deep into this topic.
What is the Importance of Technology in International Business?
The importance and role of technology in International Business have been significant in multiple departments of the field. Here are some ways how technology has shaped International Business:
1. Communication
Technology has simplified communications between countries far and wide, which allows businesses to run without any hindrance. It saves time and effort, and more importantly, cuts down on costs significantly.
2. Supply Chain Management
Supply Chain Management has been a far simpler task due to technology. Things such as blockchain technology have made tracking, traceability, and transparency a very smooth and error-free process.
3. Data Analytics
This is where Data Science and AI amalgamate with International Business. Analytics help generate insights on customer behavior, competitors’ reviews, market trends, supply chain management, etc., and provide them to Business firms.
4. Global Expansion
A simple technology like the Internet, when spread far and wide in the world, can help businesses determine new, previously untapped markets around the world. This can serve as a potential entry points and build a new economy.
5. Customer Experience
Machine learning and Artificial Intelligence can help study consumer behaviour, and thereby enhance their experience.
6. Online Store
Companies can operate their entire business out of certain locations online i.e. accepting and placing orders, etc.
7. Payment Solutions
UPIs, PayPal, and other Virtual Payment Addresses can be easily used to simplify transactions in businesses.
What are the Key Technologies Driving International Business?
Some of the key technologies driving International Business are:
- AI tools that spur innovation, reduce trade costs, help identify new markets, etc.
- Digital Platforms like UPI, PayPal, etc.
- Internet Communications reaching to the most remote corners of the world is impacting International Businesses big time positively.
- Big Data Analytics
- 3-D Printing
- Advanced Robotics Systems
- Cloud Computing – Zoom, Google Meet, Microsoft Teams
- Augmented and Virtual Reality
- Blockchain
What are the Benefits of Technology in International Business?
The biggest and broadest benefit that technology brings to any endeavor, let alone International Business, is simplifying the process. What used to take days, sometimes weeks, now gets done in minutes or hours, thanks to technology. It has reduced the need to travel constantly for business meetings since most official meetings and tasks globally can be conducted over a Zoom call or Google Meet. This further saves a lot of money, which would’ve otherwise been invested from the businesses’ savings. These are just the benefits when it comes to communication.
Technology provides a great opportunity for businesses to enter previously untapped markets. Availability of services such as the Internet in certain areas will be enough to study that place and determine the consumer potential, consumer behavior, and market potential of that area. This will help International Businesses find potential entry points to set up new markets. This helps the business grow.
Other advantages of technology in International Business Program rely on simplified payment services, enhancing customer experiences, and online stores.
Challenges and Risks of Technology in International Business
Challenges and risks will always be there when incorporating any form of technology into one’s business. But in International Business, the major risks of technology can broadly be classified into these four categories:
1. Cybersecurity
Data breaches and privacy loss a major concerns in the modern-day world, be it in any field. In International Business, large volumes of high-security data and sensitive information are either stored or shared online. Stealing them could give cybercriminals billions of dollars’ worth of information. Therefore, this is always a risk.
2. Regulatory Compliance
Companies and businesses have to adhere to a wide range of regulations spanning industries and jurisdictions. This is just like adhering to data-protection laws.
3. Logistics
Supply Chain Management has been a fairly simple task after the incorporation of technology and AI. However, SMEs (Small and Medium-Sized Enterprises) still have a hard time managing logistics if the entire supply chain fails technical competence.
4. Regulatory Risk
Companies entering into a foreign market from any local country must first alleviate regulatory risks. Otherwise, huge fines can be levied and the reputation of the company can be destroyed.
While these are some of the major concerns that International Businesses face more often, other concerns include Political Risk, Currency Fluctuations, Financial Risk, etc.
The Role of Technology in Shaping Future International Business Leaders
When it comes to International Business leaders, popular names such as Elon Musk, Jensen Huang, Bill Gates, Satya Nadela, Mark Zuckerberg, Sundar Pichai, etc., spring to mind.
These individuals, the majority of them billionaires or millionaires, have always spoken about the role and importance of technology in shaping the modern world. Late visionary leader Steve Jobs had once successfully predicted and claimed the rapid use and necessity of coding in our day-to-day lives. Today, most operations, businesses, analytical jobs, and even teaching (to an extent) make use of coding.
The likes of Elon Musk, founder of Tesla and SpaceX, have based their entire foundation of success on technology. The Tesla Cybertrucks are constantly challenging the existing norms of technology and figuring out what can be done more. For example, his ‘Self-Driving’ vehicles. His SpaceX utilizes reusable rockets, AI-powered landings, and a new deluge system to protect the launchpad and surroundings from the heat generated during launch.
On the other hand, Jensen Huang, the founder and CEO of Nvidia, is at the center of causing a gaming revolution in the modern-day world. The gaming industry has grown so large that Game Design is now a full-fledged course that is high in demand.
Video games aren’t just about the gameplay anymore; it has grown from their nascent stages and are today driven by long narrative structures, Enemy AI, NPC’s (non-performing characters), and stunning and lifelike graphics. Jensen Huang and his company Nvidia have provided game development tools, enhanced graphics, and created platforms for gaming and streaming content.
Satya Nadela, Mark Zuckerberg, and Sundar Pichai are heading three of the giant technology corporations in the world – Microsoft, Facebook, and Google. They have always embraced new technology and utilized it to the fullest.
Take OpenAI, which branched out of Microsoft, or Meta, a part of Facebook, for example. They are already changing the world with technology. ChatGPT, a part of OpenAI, is an AI tool that’s helping people with writing. Meta AI is doing the same in helping to learn, connect, and create.
Bill Gates too has been a lifelong proponent of using technology rightfully. Most of them nowadays talk about AI more than technology itself. But almost all International Business leaders are heavily influenced by technology, as it has shaped their companies, their brands, and their lifestyles. They also constantly seem to be fascinated by it.