What is the Difference Between Internationalization and Globalization

The main difference between internationalization and globalization is that internationalization refers to the way in which a certain company or a market increases its footprint or influence in the international market while globalization refers to the process in which the local markets and economies, on the whole, connect with those in other countries, sharing universally accepted rules and regulations. Hence, world economies have entered the spectrum of globalization as a result of internationalization.

Though these two terms have similar meanings at a glance, they are two entirely different things. In particular, there is a distinct difference between internationalization and globalization with regard to economics, international relations, and diplomacy.

Key Areas Covered

1. What Does Internationalization Mean
     – Definition, Focus, Results
2. What Does Globalization Mean
     – Definition, Focus, Results
3. What is the Relationship Between Internationalization and Globalization
     – Outline of the Association
4. What is the Difference Between Internationalization and Globalization
     – Comparison of Key Differences

Key Terms

Globalization, Internationalization, Economics, Technology

Difference Between Internationalization and Globalization - Comparison Summary

What Does Internationalization Mean

Internationalization, in brief, is the process where a local enterprise or market produces its products and services in a way that they fit into the needs and wants of other countries as well. Hence, these services and products can be easily used and adapted by those in other countries.

Internationalization, in other words, is the process of increasing the involvement of a particular enterprise of a company in international markets. For this to happen, that particular local market should design a product or a service in such a way that it will meet the needs of users in many countries with minimum cost and efforts. And, this may include activities such as sourcing, producing and selling materials, components, goods, and services, etc.

Difference Between Internationalization and Globalization_Figure 1

Using a brand name which can be understood by anyone in any culture and country, using a language which is internationally recognized or enabling the option of translation to fit into the client’s local language (with regard to websites, etc.) etc. are several strategies local markets and companies use in internationalization.

Internationalization is the effort of local markets and business companies to do business in one or more foreign markets. Consequently, with the increase of the client base of a certain local market in the international market, they will start creating connections with other international markets as well; this is the aspect of globalization.

Main Difference - Internationalization vs Globalization

Accordingly, internationalization means the increase or the expansion of the services and trade among other nations or actors in the international stage. Thus, this refers to the expansion of sectors such as international trade, international relations, treaties, diplomatic activities, etc. Overall, internationalization results in the expansion of relationships in terms of economics, politics, and trade among the different nations in the world. In a general sense, it is also possible to use the concept of internationalization to other sectors such as education and human rights as well.

What Does Globalization Mean

Globalization refers to the worldwide interaction or the interconnection of local private and public markets in one global arena, respecting universally accepted rules and regulations. This integration of economic, financial, cultural etc. aspects allows the ease of cross-border movement and transfer of people, capital, data, goods, and services.

Globalization results in the emergence of open markets, free trade economies through non-tariff trade borders, reduction of traffic, development of infrastructure and transportation.

Difference Between Internationalization and Globalization_Figure 3

The business-related strategies span into the cultural aspect of other countries and communities, enabling to create a new assimilated culture. Therefore, globalization impacts not only the economy of a certain country, but also the other sectors such as politics, society, culture. Hence, globalization can be identified as composed of internationalization and localization.

Difference Between Internationalization and Globalization_Figure 4

However, this free market benefits only large state multinational corporations, eventually causing damage to smaller businesses, and local cultural identities. Moreover, due to the open market and open mobility of people that comes as a result of globalization, uncontrollable migrations create issues in the social as well as political stability in a local community. Such adverse effects of globalization are major a cause for Brexit (Britain leaving the European Union).

Relationship Between Internationalization and Globalization

  • Internationalization has a direct influence on creating globalization; the global trend for internationalization has contributed greatly to drive the global economy to globalization. Hence, the local economies get connected to other local economies to gain the commercial advantages of globalization.

Difference Between Internationalization and Globalization

Definition

Internationalization refers to the process of increasing the enterprise of a certain local company in the international market while globalization refers to the process of integration of local markets into one global market. Thus, this is the main difference between internationalization and globalization.

Focus

Their focus is another difference between internationalization and globalization. The focus of internationalization is the expansion of the client base of a local business in the global or international market whereas the focus in globalization is the exchange of products and services from the interaction of local markets in one global market. And, this enhances free trade and capital mobility services as well.

Result

The results of internationalization include increasing the influence of the enterprise of a local market and influencing globalization. The results of globalization include the decrease of global market trade barriers, the emergence of free and open markets, the mobility of free trade capital, increased and uncontrollable migration, decline of local cultures and identities and the negative effect on the small local business. Hence, this is another important difference between internationalization and globalization.

Conclusion

Most people confuse the two terms internationalization and globalization due to their similar nature. However, they are two distinctive, yet connected concepts. The main difference between internationalization and globalization is that internationalization refers to the way in which a certain company or a market increase its footprint or influence in the international market while globalization refers to the process where the local markets and economies, on the whole, connect with those in other countries sharing the universally accepted rules and regulations.

Reference:

1. Kenton, Will. “Internationalization.” Investopedia, Investopedia, 13 Dec. 2018, Available here.
2. Kenton, Will. “Globalization.” Investopedia, Investopedia, 13 Dec. 2018, Available here.

Image Courtesy:

1. “1194025” (CC0) via Pixabay
2. “GPLv3 Logo” By Free Software Foundation –  (Public Domain) via Commons Wikimedia
3. “1313553” (CC0) via Max Pixel
4. “Globalisationchart” By IaT_vicky – Own creation (CC BY 3.0) via Commons Wikimedia

About the Author: Upen

Upen, BA (Honours) in Languages and Linguistics, has academic experiences and knowledge on international relations and politics. Her academic interests are English language, European and Oriental Languages, Internal Affairs and International Politics, and Psychology.

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