How Globalization and E-marketplaces Help Each Other

Globalization is the concept that allows free flow of tradable entities among different world economies. The post World War II era favored the growth of globalization and world trade. The Uruguay Round from 1986 to1994 led to the creation of World Trade Organization to make international trade smoother.

The world of internet too was introduced in 1990s and it acted as the breeding ground for e-businesses. Therefore, globalization progressed in the era when internet and e-commerce were mere thoughts. As the concept of e-commerce grew, it led to the formation of e-marketplaces. Today, there are global e-marketplaces in the form of b2c and b2b spaces and they are contributing towards the success of globalization.

Globalization and e-marketplaces have a common aim of extending the reach of businesses beyond the geographical boundaries. The concept existed in the ancient times, when trade routes like the famous Silk Route led to successful trading between countries. However, there were many issues that are resolved by the online marketplaces in today’s world.

Localization of Information – With the help of e-marketplaces, globalization offers localized information to the consumers located in different parts of the world. The business buyers are informed about the products offered by business sellers in the language the former understands. Information doesn’t pass through the hands of middlemen and there is direct dealing between the buyers and the sellers.

Improved Time to Market – Earlier, the concept of globalization suffered from the issue of large time consumption. Today, the business sellers take no time to let their products and services reach the target markets. This has been made possible due to the collaboration of globalization with e-marketplaces.

Brand Building – Globalization further adds to the competition that a business faces in its local market. Now, the businesses have to compete with their international rivals. So, those who are bale to make good use of e-marketplaces and online marketing tools are able to build goodwill for their brands.

If globalization introduced the idea of trading among countries, the e-marketplaces helped the idea of international trade to flourish. And today, the two concepts co-exist and successfully support each other.