The beginning of the 21st century has been marked by a big shift, from an industrial economy that was more local and more secure to what we call a Digital or a global economy, since then everything has changed. So the industrial age has gone and made a place for the knowledge, and information age which is digital, high-tech, and global.
This knowledge or Global economy is fully based on information, technology, and communication with the internet as the most powerful vehicle and tool used for transportation from the most distanced corner of the world to the other. Therefore, now more than any other time before, for a business to be competitive in this global and fast-changing economy, it will have to apply a sound information management system, and strategic Marketing plan and be grounded in technology.
One of the most important things we have to understand and even be scared of in our Global economy is that the world is no longer an isolated place, what happens in Israel can affect the United States of America or Canada and the impact on the economy can be felt anywhere in the globe.
today, I want to take a look at what is going on in the world and the economy, then explain why this global economy is weaker and more fragile than ever before as everything, everyone, and every city in every country is interconnected.
What does the history teach us?
As a global Entrepreneur, I always want to keep an eye on what is happening in the world economy, especially in the global financial Market, Global Business, and Global Economy to understand the facts and make better decisions. Let’s go back to 2007-2008 with the financial crisis, also called the ” subprime mortgage crisis ” – a great contradiction, like never before, of global market liquidity that had its origin in the United States as a result of the US Housing market collapse. And that was the biggest threat to destroying the international (global) financial market system. That crisis caused a near-failure of a lot of major investments in Insurance companies, Mortgage brokerage, commercial banks, and savings and loan organizations all over the world.
That was the worst economic downturn the world has known since the great depression ( 1929-1930) and the whole world was at risk from something or a situation that originated in the US.
What about COVID-19? Do you remember how all that started? I personally remember when the big TV channels in Canada started talking about it like something horrible in China and that was like, so sad for the Chinese people who had to face that situation. But, what they forgot was the world is now one little area and that every place is close, so what happens in China can affect Canada, the Caribbean world, Africa, and Europe in one way or another. That is called Globalization.
A Global economy is a weak and fragile economy because one country or one region can destroy the whole economy.
Middle East tensions rise – How can that impact the economy?
In the same way, we cannot ignore what is going on in the Middle East between Israel and Palestine. We can feel the impact on the global financial market already. Investors all over the world especially in the US are keeping a close eye on the Middle East, however, focus on the Federal Reserve and the season of earning.
Oil futures knew a leap close to 6% on Friday as investors priced in the possibility of a wider conflict in the Middle East. We would say, we’re headed for a massive ground invasion in Gaza also a large-scale life loss.
Therefore the reaction of the global market last week was kind of muted though Israel’s shekel currency was a big hit. So, all that is to simply remind you of the importance of being conscious of the interconnection between all existing things in our world. That’s why I am talking about the vulnerability and weakness of the economy in a globalized world.
Global business in a global world.
We can define globalization as the increase and the flow of goods, services, capital, and ideas across international boundaries in an interconnected world.
With the coming of the internet, we can say we are only a few clicks away from one another, so we are living in a globalized world, with a global market and a global economy.
That means countries and nations or states are tightly connected with one another while local businesses share one big massive market that allows them to have clients, customers, and even laborers from anywhere in the world.
As a matter of fact, globalization has led to an increase in cross-border investments and opportunities.
The Increase of Electronic Commerce (E-commerce)
One of the most remarkable and the most important changes that occurred in the digital and information age as part of globalization is the rise of E-commerce which is the conducting of business over the internet.
In our economy today, people and companies can buy, sell, compare, and market everything only from the comfort of their homes using a laptop or a smartphone.
Thanks to E-commerce, services, and goods can have a presence in the global market and economy. Potential customers and clients worldwide can have access to a lot more products and services than they could before in the industrial age, and that can both increase sales (advantage) and competition (disadvantage).
I know just like you that as far as we are concerned, the global economy can be threatened only by one single conflict in a region just like the one in the Middle East today, however, we can’t ignore that we also have big opportunities to, for example, run a business, sell products and services right from the comfort of our homes only by using our cellphone or our laptop with an internet connection.
SOME TYPES OF E-COMMERCE IN CASE YOU WOULD INTEND TO START AN E-COMMERCE :
- . Business to customer ( B2C) model.
- In the B2C commerce model, the business market and sell their products or services to individual customers – Customers deal or interact directly with the business or companies. Oh, uh I want to remind you as well that the B2C model is the most closely traditional commerce in the industry. The B2C model is the most familiar model.
- . Business to business (B2B) model.
- This model consists of businesses selling goods, products, and services to other businesses. so, while B2C is the most familiar model, B2B may be the most lucrative one. Because B2B e-marketplaces represent a huge and yet growing Niche in today’s global economy.
- . Business to Government (B2G) model.
- The B2G commerce model is businesses selling their products and services to governments. For example, some airplane manufacturers manufacture airplanes for the US and Canadian Air Force. Therefore, businesses and companies really have to compete fiercely with one another for government contracts.
- Consumer to Consumer (C2C)
- Consumer to Business ( C2B)
- Consumer to Governments (C2G) – Currently this model is not really utilized…
- Government to Consumer (G2C)
- Government to Business (G2B)
- Government to Government (G2G)
Conclusions
The coming of the Internet in globalization and business gave birth to electronic Commerce (E-commerce) in which businesses can perform their activities entirely Online without even having a local facility. We are living in a globalized world with a global financial market and economy – so the fact that it is a global economy means that it can be impacted by local and national conflicts.
That’s why investors want to keep an eye on the Middle East conflict between Israel and Hamas as the market has known some negative aspects the past week.
However, opportunities are also there – we are in the information age, and it is easier than ever before to gain knowledge on anything and everything. Globalization doesn’t only allow individual and companies to conduct business from the comfort of their computer and cell phones but also to get training, and education on many things like Business, sales, Marketing, leadership, and so on.
So It is your time and your turn to figure out how you can be part of all this, part of the global economy. Do not just stay and watch but get involved, and get busy. If you have an interest or a passion you can turn it into a successful online business.
I hope I helped you find out and this article really encourages you to seek deeper fo what you have been looking for if you have any comments or questions, please leave them in the comments box below.