internationalization vs globalization essay

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Internationalization and Globalization: What’s the Difference Between?

6 min. read

Despite the global pandemic and looming recession, world trade volume is expected to grow by 1% in 2023.

Want to tap into the surging demand for goods by breaking into international markets? Make sure to understand the difference between internationalization and globalization.

In this article, you will learn what internationalization and globalization are and how both can benefit your business.

Pro tip : Before entering global markets, localize your product and marketing materials to make them accessible to new audiences. To establish an effective localization process, use professional translation management software. Learn more here .

Globalization vs. internationalization: Key differences

The difference between internationalization and globalization is that one refers to the global expansion of individual companies, while the other means the global expansion of entire economies. The internationalization of businesses has driven the global economy into a state of large-scale globalization. Put simply, internationalization is a subset of globalization.

To better understand globalization and internationalization, let’s see how they differ along three key dimensions: goals, scope, and players.

Globalization focuses on connecting the economic systems of different countries by removing trade barriers. This allows a seamless flow of resources, goods, people, information, and communication technology throughout the world economy.

Internationalization is concerned with the economic growth of an individual business. Internalization requires the recreation of the brand identity and the embrace of local traditions to win over customers.

Globalization has a far-reaching scope covering multiple national economies. Any globalization campaign typically impacts the entire national and global economy.

Internationalization has a narrower scope because it impacts a single company and its target audience.

A globalization strategy involves governments, multinational companies, international organizations, and global consumers. Governments collaborate extensively to establish goals and outcomes of the globalization process.

Internationalization mainly happens in the private sector and involves individual businesses. Governments play a minor role in creating regulations for international market trade.

What is internationalization?

Internationalization refers to modifying your products and services to resonate with buyers in foreign markets. Internationalization involves localizing your content, redesigning your website and product, and revamping your messaging to position your brand in the global market.

3 Benefits of internationalization

An internationalization strategy can benefit companies in many ways, such as:

• Acquiring new customers and building brand awareness in different countries
• Boosting the company’s competitiveness internationally and transitioning to a global brand
• Improving investment and revenue opportunities with access to tax relief norms, cheaper talent, and more

To realize these benefits, companies must take care of trade barriers and prepare a bulletproof internationalization strategy.

Two examples of internationalization

Here are a few examples of popular brands that have expanded to the international market:

McDonald’s internationalization strategy

McDonald’s is a classic example of internationalization. The fast food chain expanded across many countries using a balanced pattern of standardization and global localization .

Even though McDonald’s retained its brand identity and operating frameworks, it underwent a major change to support its internationalization efforts.

Specifically, McDonald’s localized its menus to appeal to every market’s customer base. The company introduced the special Teriyaki Burger in Japan and the McLobster in Canada to become a fan favorite among local buyers. Thus, McDonald’s combined a successful localization strategy with customized marketing campaigns to overcome cultural differences.

Learn the difference between customization and localization here .

Source: IndexMundi

Toyota’s internationalization strategy

Toyota has been one of the biggest automobile brands globally—thanks to its rapid and large-scale internationalization efforts in the 1960s and ‘70s. The automotive giant acquired local production centers to launch itself in several regional markets.

What makes Toyota a brilliant case study of internationalization is its efforts in building relationships with local partners, like General Motors in the US. The manufacturer worked rigorously with local dealers and suppliers to build a strong presence in different national markets.

Source: Toyota

Tactics for Internationalization

Here are three main tactics for internationalizing your business:

• Plan ahead : Planning can make or break your internationalization efforts. Prepare a solid groundwork for your strategy by researching the country’s legal framework, architectural requirements, and other nuances before strategy implementation.
• Get strategic support : Go beyond your team to collaborate with more experienced individuals for building an airtight internationalization strategy. Hire local consultants from your target market to draw out a fail-proof roadmap for accomplishing your goals.
• Choose a localization tool : Localization is the most important piece of the puzzle for an internationalization campaign. Work with a fully-integrated localization tool like Centus to manage all the moving parts in your strategy without breaking a sweat.

What is globalization?

Globalization refers to merging the economic process of different nations to enable the exchange of ideas and resources. Globalization promotes the idea of free international trade and brings multiple nations together to mutually benefit developed, developing, and underdeveloped countries.

Think of globalization as the convergence of different countries. Globalization builds an integrated system for economic, social, and political change.

3 Benefits of globalization

Here are the main benefits of globalization for every country:

• Globalization facilitates the removal of trade barriers, thereby promoting international commerce
• Unrestricted flow of goods, people, and cultural values to promote lucrative and free trade
• Faster spread of opportunities and economic growth among developing and less developed countries

Companies benefit from globalization by having broader recruitment opportunities, savings cots, and mitigating risks.

Two examples of globalization

Here are two examples of how globalization works:

Automobile manufacturing in a globalized setting

The automobile manufacturing sector presents a great example of globalization.

Most automobile brands conduct R&D in their home country, like Germany for Volkswagen or Japan for Toyota. However, automobile parts are manufactured in other countries with cheaper labor and materials, like Mexico or India. Then, the parts are assembled in different locations to be sold in multiple countries across the world.

This manufacturing and supply chain framework interconnects multiple economies creating an integrated economic system.

Multinational companies in a globalized setting

Multinational corporations operating satellite offices in many countries is another example of how globalization works. For example, a multinational corporation can have its headquarters in the US with multiple satellite branches across Europe and Asia. Its workforce, resources, and technology are divided between multiple nations, benefitting each country and bringing them together on a global scale.

Tactics for globalization

Here are three key tactics that can be used to implement a globalization strategy:

• Digitalization : Supply chain management is one of the most critical factors behind the success of globalization. Digitizing these workflows can enable smarter decision-making based on strategic data and produce the desired ROI.
• Localization : Expanding operations in the local market is another way to reduce the risks associated with cultural barriers and implement globalization effectively. A localization suite should be used to streamline the localization process.
• Licensing and franchising : Businesses can embrace globalization by licensing or franchising their services. This tactic allows establishing a global presence with minimal employee supervision, reduced financial risk, and increased brand awareness.

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Globalization & Internationalization: What Role Does Each Play?

• February 12, 2021

We live in a complex world. One where almost 7,000 languages are spoken. Thanks to collaborative efforts and new technologies, there is no reason that language barriers need to stand in the way of scientific , medical , or cultural progress. The translation industry in particular has stepped in to help expand borders and break down barriers. Two such ways this is accomplished are through globalization and internationalization (i18n). These two terms are easily confused, but each holds an important place in the translation industry and across almost all other industries. 

What is Globalization?

The term globalization has not one, but two meanings. On one hand it can refer to the globalizing economy or business activity. However, in the field of translation and localization , globalization centers around business activities that relate to marketing either a product or service in various regional markets. Globalization can take a local or regional phenomena and transform it into a global one . 

The globalization process stems around bringing cultures , economies, and people from different regions closer together. This allows organizations and businesses to connect stronger with their consumers or business partners from across the globe. Consumers can benefit from globalization as much as companies can, as it can provide them access to transformational advances. 

When it comes to the translation industry, globalization focuses on the product development cycle. A few examples of where globalization is applicable are:

• Date and times
• Calendar months
• Decimal separators
• Cultural connotations

What is Internationalization?

Internationalization (also known as i18n) falls under the general umbrella of globalization , as does localization. The process of internationalization helps adapt a product to a specific market easily. Internationalization is a strategy used in business to make a product or service adaptable so that entering different national markets is more seamless.

In order to go about the internationalization process properly, subject-matter experts, technical experts, or people with a level of international experience may be called upon. In general, any products intended for use by consumers across multiple languages will undergo the internationalization process. Some areas of product development and usage that internationalization can apply are:

• Postal codes
• Social Security and social insurance formats
• Telephone formats
• Assembly instructions

The Main Differences of Globalization vs Internationalization

When it comes to differentiating between globalization and internationalization, it is essential to remember that internationalization is covered under the umbrella of globalization. Internationalization is typically viewed as a strategy, not as a task to undertake at a later date.

Put simply, globalization is a process used by a company to bring its business to new locales, whereas internationalization refers to the act of designing a product or service in a way that makes the expansion into international markets a simpler process. 

Globalization and internationalization go hand in hand. Both should be used if a business plans to expand a product to multiple national, and sometimes even regional, markets . Ideally, a business will plan for these processes before a project begins, which will allow them to design products or services that users across different cultures and languages can utilize.

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Home » Business » Economics » What is the Difference Between Internationalization and Globalization

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

Globalization, Internationalization, Economics, Technology

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.

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.

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.

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.

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

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.

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.

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.

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.

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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Internationalization vs. Globalization: What's the Difference?

Key Differences

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Internationalization vs Globalization: Difference and Comparison

The difference between internationalization and globalization is that internationalization is the process of developing products and services by a country to expand its subsidiaries in foreign markets and cover a wide area while, on the other hand, globalization is the economic, social, technological, and cultural relations amongst countries empowered by international trade and investments.

Internationalization involves the importation and exportation of goods and services. It increases trade dealings and relations at international levels. It aims to expand businesses in and outside a country’s boundaries to meet International standards.

It enhances good relations between member countries, allowing each country to increase its enterprise presence and pushing the world to globalization .

Globalization focuses on the free flow of goods, services, and capital around the globe. It’s the mutual interdependence of countries across the world fostered by free trade and the removal of trade barriers. It leads to a rise in international trade since there will be no barriers to trade.

Trade barriers include a lack of a common currency. Globalization aims at having a common currency between member countries to ease trade. It leads to easier access to the world market.

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Key Takeaways Internationalization focuses on modifying products or services to accommodate various cultural, linguistic, and regulatory requirements across countries. Globalization involves the integration of economies, cultures, and markets worldwide, promoting the exchange of goods, services, and ideas. Internationalization is a business strategy that companies adopt, while globalization is an ongoing process affecting the world.

Internationalization vs Globalization

Internationalization refers to the exportation and importation of products to other countries in order to create international relations and increase market value. Globalization focuses on building economic and political relations between countries for investment and other purposes.

Comparison Table

What is internationalization.

It is the process of developing goods and services in a country to expand its subsidiaries in foreign markets and cover a wide area. It involves the relocation of businesses across the globe.

It also involves the importation of goods and services. Money is the main form of exchange and barter trade to a lower extent. It aims at hitting its target in the world market, thereby incurring high profits and hence expansion of constituent businesses.

Several factors highly influence it:

• Taste and preferences- different people have different urges and ideas about different products and services. People will tend to choose more of the goods and services they are familiar with prior to the new ones in the market.
• Traditions- based on different ethnic groups of people around the world, different goods and services will be used by different people.
• Capital- this plays a major role in the world of exchange. The purchasing power is highly influenced by the money flow in the economy.

Internationalization increases trade dealings and relations at the international level. When a business in a country has increased nationally, it generates ideas and income to grow beyond its borders, therefore, the need for internationalization.

It focuses on the expansion of the business both locally and internationally. Since competition in the world market is so high, this will prompt a country to produce goods and services that are unique and better off, as it is said, “competition is healthy.”

What is Globalization?

It is the economic, technological, social, and cultural relations among countries across the globe empowered by international trade and investments assisted by information technology. It focuses on the free flow of goods and services across the globe.

Through the removal of trade barriers, globalization has enhanced trade in the world at large. On the other hand, migrations have increased since there are no strict rules on immigration. Also, duties and taxes on goods and services have been lowered.

Information technology has highly enhanced globalization. This is because trade is carried over the internet effectively. Therefore, business time is not limited for customers to purchase whatever they want at any time.

Globalization is influenced by infrastructure, which is the development of roads and other transport links across the globe in order to easen trade. The type of goods being transported also influences this.

Main Differences Between Internationalization and Globalization

• Internationalization is the process of developing goods and services by a country in order to expand its subsidiaries in foreign markets, while globalization is the economic, technological, social, and cultural development among countries empowered by investments and information and technology.
• Taste, preferences, and traditions highly influence internationalization, while globalization is influenced by infrastructure and network logistics.
• Internationalization focuses on business expansion both locally and Internationally, while globalization focuses on the free flow of goods and services through the removal of trade barriers across the globe.
• Internationalization relates to a firm and its businesses, while globalization relates to the economy of the particular country and the world at large.
• Internationalization involves importation and exportation, while globalization involves the removal of trade barriers and increased external relations and migrations.

Last Updated : 28 July, 2023

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Globalization Vs Internationalization: the Difference

For people unfamiliar with the localization process, both terms often used by agencies and translation providers may all sound the same: Globalization of the company or part of its operations and internationalization of the software, apps, UI, and content. Even like synonyms. But the terms are quite different for professionals in the localization services field.

But what exactly is internationalization, and how does it compare to globalization? And are there significant differences between the two terms? What are the advantages of the two? Why do some companies prefer one over the other?

Let us play corporate business strategists for a moment and explore this topic together. You'll learn everything you need to distinguish between the terms using clear examples. You'll get the help you need to decide which process is currently close to your business requirements.

Globalization vs. Internationalization Explained Simply

Both of these concepts will impact the business world: whether it is a large multinational corporation, a medium-sized company, or a small local family business. It is critical to go global and ensure that corporate content meets the needs of a worldwide audience. Especially in a world where customers can find a wealth of resources and competing offers with just a few clicks on the Internet.

Global reach is easy now, and it's the same in Europe, America, and the rest of the world.

Related content: Localization vs Internationalization: 2 Sides, Same Coin

In simple terms, globalization means a company's expansion abroad to different international markets with all its legal, logistics, production, customer, accounting, internal operations, and marketing aspects. The world's economies will always look different in business because of globalization.  

Example 1: Ikea

Let us take Ikea as an example. The company is one of the best examples of globalization in business. Ikea is a Swedish company that is internationally known and present in 31 countries around the globe.   What does that mean? They have local branches in different countries, thousands of employees who share the same corporate values, and customers who love the simplicity of their furniture designs.   Globalization also meant that Ikea, as a company, had to make sure:

• It had legal operations in each country
• That brand was protected in each of its 31 markets
• That the blue and yellow color scheme was immediately associated with the brand, and
• That its communications reflected the same values on the international market

Among other things, of course.   Does the globalization of Ikea's business mean that every store gets the same range of products? Or the same communication?

No. But the company had to ensure the multilingual international audience had access to all needed resources.   This is precisely where the internationalization of the Ikea business comes in.   The internationalization process considers local preferences, special interests, and significant market differences. The method of internationalization involves many steps that must be taken into account.

In  computing , internationalization is often abbreviated as i18n. Together with localization (l10n), they are means of adapting  computer software  to different languages. It also includes regional peculiarities and technical requirements of a target language. Internationalization is designing a software application and its UI to be adapted to various languages and regions without making significant variations.

Internationalization is the process of making applications international in appearance and operation. Internationalization is essential for any website or software app to be marketable in multiple countries where different languages are spoken, which makes it an important aspect of any business strategy. And for this to work, a successful localization strategy must be in place.

A great example of Ikea's internationalization on a global scale is ensuring that local Saudi users have access to the Arabic version of the website. As an e-commerce company, Ikea knows best the importance of websites.

Average viewers from all regions need to have easy access to online shopping. Ikea's local developers and marketers work hard to make this possible: It is critical that the user interface is translated correctly and displayed without errors.

In Western cultures, people read from left to right, but in Arabic, they read from right to left. This presents a challenge. Just take a  look at the Arabic version of the Ikea website.

Example 2: Popular Marketplace Platforms

If you are looking for other well-known globalized companies, think Amazon, eBay, Etsy , and AliExpress.   The marketplaces and the e-commerce platforms mentioned above offer products from different countries worldwide.   Customers can choose the best deals based on proximity to their home, quality of products, or price - to name a few filter options. Each filter has to be modified carefully for users of all regions.

Adapting a particular product in terms of preparing the user interface and apps to work correctly in many languages is not a piece of cake. Producing software that can exist between the translations and cultural preferences requires much preparation before the translations can start.

Example 3: Netflix

Netflix , a video content provider, is another perfect example.   The streaming app for smartphones, desktops, and TVs is available internationally as a content service. However, content selection depends on the user's location.

Suppose an American traveling through Europe or Asia does not see an option to play their favorite show. In that case, it's usually because of licensing and copyright agreements in regional markets. And, of course, the other way around.

Asian or European users may not see the same selection in the US as in their own countries. When you visit different destinations, you notice that local options are often advertised.   At the same time, the company has to ensure users from different national markets experience the same high-quality service. The app UI has to be displayed correctly. The desktop interface cannot crash or display and decode special characters incorrectly. The smartTV apps have to work perfectly with most locally used devices.

Related content: How Much Does Software Localization Cost?

How do Globalization and Internationalization Affect Business?

Globalization has led to a more open world where companies can operate in multiple countries and expand their offerings and services to new markets. This has developed new business opportunities for companies willing to take risks and act flexibly.   Thanks to internationalization, companies can better engage with local customers and adapt to market needs by incorporating local values and different cultures into their business operations.   As a company, if you decide to internationalize, you will give yourself an advantage over your competitors who have yet to decide to invest in expanding their business.  If you approach internationalization correctly, you will create a new system inside a local business niche and provoke the interest of new customers who have yet to hear of your offer.

The Challenges of Globalization and Internationalization

Globalization and internationalization present different challenges. Let's take a look at the short list of some notable examples that can arise when a company decides to go global:

• Determining if the country(ies) to expand into is worth the investment.
• Ensuring that the company understands the local market and business culture well.
• Budget and staffing challenges: Do we need more money and staff to complete the process?
• Lack of know-how to implement globalization and internationalization concepts when expanding the offering.
• Customer support in different languages, as customers will expect this due to the localized website, communication, and content.
• Legal issues may arise regarding patents and copyrights, which must be carefully managed if a company plans to market its products internationally.

What Are the Benefits of Globalization and Internationalization?

Globalization means making a product or service available to a larger market. This can be done by manufacturing in foreign countries and selling products worldwide (which benefits the global economy). However, to ensure that the items meets local tastes and preferences, they must be localized before being sold.   Localizing and internationalizing allow a company to ensure that its product appeals to local consumers and meets their needs and wants. This helps the company increase its market share and make more money but also helps ensure that customers are more satisfied with the product.   The brand can achieve higher awareness around the world or in specific markets. By offering different products and services for different markets, companies can reach more customers and better tailor their offerings to customers' needs.   Internationalization can help companies reduce customer churn and increase customer loyalty by providing a consistent and reliable experience across multiple platforms and markets. It also enables companies to reach new customers and increase sales by offering services tailored to the local market's needs.

Related content:   A Guide To Understanding Translation and Localization

The benefits of internationalization in localization go beyond streamlining business operations; they can help companies stay competitive in an ever-evolving market.

Thanks to globalization and internationalization, companies can expand their customer base and eliminate geographical and language barriers.

When it comes to the workforce, companies that embrace globalization can draw on a broader range of resources and talent, improving their productivity, agility, and competitiveness. In the long run, this alone lowers the cost of doing business.

Internationalization can also help companies stay relevant in today's dynamic international marketplace by keeping up with the latest trends and best practices. Customers are happy to have a company near them and are more likely to buy from them. Overall, internationalization is essential for companies that want to remain competitive in today's global economy.

Key Differences Between Globalization and Internationalization

There are crucial differences between them. Globalization means expanding a company's economic activities and influence beyond its borders. This includes trade, investment, and cooperation between nations/companies. Globalization, since its beginnings, has always supported free trade, and the business world could not be more grateful for this possibility.   On the other hand, internationalization means making a company or product available in multiple languages and cultures so that they are not crashing or causing any problems. This includes making products available online, in different markets, through various channels (applications, websites, social media), and in brick-and-mortar stores.   Let's use another example of a well-known brand: McDonald's .   The famous American restaurant serving beef burgers is in over 100 countries. People around the globe are familiar with the Ronald McDonald clown, the standardized identical yellow fries, Happy Meals, and the drive-through.   Much like the example of Ikea mentioned a few paragraphs above, Macdonald's has become a symbol of a truly globalized brand.   What are the examples of internalization in McDonald's business model?   You may already know this because it was featured in one of pop culture's iconic films, Pulp Fiction, by Quentin Tarantino. Remember the famous scene in the car where Vincent brags about his trip to Europe and eating McDonald's burgers?

The American classic Quarter Pounder with Cheese is known in Europe as Royal With Cheese because of the metric system. Europeans would only know what a quarter pounder of beef is as kilograms and grams are the standard weight measures. In contrast, Royal is a better word description. It brings to mind the delicate ingredients used in McDonald's chain burgers and their high quality.   Similarly, the protagonist describes his experience with French fries in Belgium. The fries are served with mayonnaise, not ketchup, a traditional local preference. Moreover, Belgian fries are internationally known for their great taste.   Let us take a closer look at McDonald's localized menu, another excellent example of the company's internationalization.   All over the world, famous burgers contain beef as the main meat ingredient. But what about India? The chain is present in the Indian market but does not serve beef. For religious reasons, cows are sacred animals in India. The Indian menu at McDonald's is tailored to local taste buds, with many vegetarian options, paneer cheese, and a more spicy menu.

Which is Better for Your Company: Globalization or Internationalization?

The simple answer that no one really likes: it depends on your situation and your business needs. Below are some examples of approaching the topic that may help you decide which path to take.

Consider globalization if you:

• Plan to expand business activities to another market abroad
• If you want to attract new product suppliers and production plants in a specific region of the world (it is essential how you approach your prospects in different regions)
• If you are looking for local labor, local laws may require a business entity registered in a particular market
• When the local audience wants to buy only local products and the label "Made in ..." makes a difference for them
• If you see a clear benefit in globalization and have calculated that the benefits outweigh the costs: positive ROI

Consider internationalization if:

• Users in a particular language visit your website or webshop, e.g., if, since the beginning of the war in Ukraine, a large number of Ukrainians have used your services and you need a way to address new customers in an already existing market.
• Your existing website and its content need to be tailored to different language users from the same country, e.g., if you need German, French, Italian, and Romansh in Switzerland, but also English for tourists or English-speaking emigrants.
• You are already established in different markets but need to gain the trust of the local audience to increase the conversion rate. Consider whether English date selection in the UK can solve some of the problems with missed dates or hotel booking confusion (since date selection in the UK starts on Monday, in the US, it begins on Sunday).

Long Story Short

Globalization and internationalization are closely related, and both are essential to a company's success in today's business world open for international markets.

While globalization focuses on the international aspect of business and its expansion, internationalization encompasses the local factors that enable companies to thrive and serve customers in the best possible way.

Both involve adapting to a variety of cultures and business practices. Still, there are differences between the two that we highlighted above. The next time you discuss globalization and internationalization with someone, we hope this article helps you better understand the basics.

Want to learn more?

Below you will find more useful articles that deal with this topic.

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Internationalization vs. Globalization

Estimated reading time: 4 minutes, 37 seconds

• William Pace
• September 10, 2020
• Blog Translation Industry

“The term ‘glocalization’ is in fairly wide use today. In the sense of ‘think globally, act locally’” – Roger Caves, Encyclopedia of the City

After previously looking at the key differences between translation and localization, we showed that while the two terms are often mistakenly used interchangeably when discussing Translation Management, there are in fact huge differences that have to be taken into account. Today, we will explore two more closely related (and often mismanaged) terms; internationalization and globalization.

Taken in a context outside of Translation Project Management , the two terms are somewhat indistinguishable; the archetypal characters of ‘Mr. International’ or a ‘Globetrotter’ conjures the very same image. But when it comes to something in our area of expertise such as Website Translation, there are quite a few distinctive and important differences between these two terms, which we’ll delve into below!

Globalization (#g11n)

“Transforming things, no matter what they are, can be from being local or regional into worldly, international or global.” – Said Shiyab, Globalization and Aspects of Translation

In its broadest form, globalization is mainly discussed as an economic process that also integrates social and cultural aspects. It can involve services and the economic resources of capital, technology, and data. However, in the technology and data sector, globalization is the process by which companies prepare their products ( software , websites , e-Commerce, web apps, etc.) for reception by the global audience. With the goal being not just to make the products available to multiple markets but viable to them, by taking into account all the various differences which can make or break that effort.

Globalization is about creating a robust yet malleable framework on which you can build around with ease, without the need for large wholesale rebuilds down the line. For example, when designing your website, if you intend to break into an Arabic speaking market, you need to keep in mind that in Arabic, the content should be displayed from right to left, not the other way around . As Microsoft themselves state, “Designing for internationalization at the beginning of your product cycle saves you time, money, and effort”.

Interconnected to localization, globalization touches strictly on the practical aspects of adapting a product or service to a global audience. All the people involved with the product, from content creators to designers and developers should be involved in this process. Also, they need to tackle two separate processes to achieve the goal of globalization – localization and internationalization.

We touched on the concept of localization when we discussed Localization vs Translation. Now let’s first look at internationalization before observing how, when working in tandem, the two form globalization. For the sake of clarity we’ll use a quote from Bert Esselink’s The Evolution of Localization to quickly summarise:

“In a nutshell, localization revolves around combining language and technology to produce a product that can cross-cultural and language barriers. No more, no less.”

Internationalization (#i18n)

Now, what exactly is internationalization, you might ask? In economic terms, Internationalization is the efforts of companies to do business in at least one foreign market. This can include the sourcing, producing, and selling of products and services. To keep it simple, internationalization is a task you need to complete in order to globalize your product.

Internationalization is the process of preparing a product that can be used internationally and localized when necessary, easily.

These processes can include but are not limited to: creating space in user interfaces, making graphics with examples for documents, using tools that are able to give support to international character sets, and avoiding hard-coding the text in buttons (this will make it very difficult to localize).

Using a simple language for the source content of the product (whether this is English or another language) will also help in the localization of this content as there will be fewer things you need to cover in the style guide for localization.

The process of creating a document that is both linguistically viable global audiences whilst still taking the cultural aspects into account is no mean feat . Nevertheless, the action of internationalization itself (especially during the initial stages of development) make localization a much more straightforward affair.

Key elements to keep in mind when considering internationalization and localization:

• Formatting : Different country? Different formatting. Date and Time formats are not universal, even numbers themselves are not standardized.
• Symbols/Abbreviations : When symbols are used in text, the meaning they can take on depends wholly upon the target language.
• Gender : Where English rarely genders items, one only has to travel 26 miles across the Channel to France where gender is assigned to just about everything.
• Visual : Images, graphics, colours and icons that may have a specific meaning in one culture can have little to no meaning in another. Even worse they may in fact be offensive to speakers of the target language.

Once the team has done everything to simplify the localization process via internationalization, you are well on your way to globalization. When combined with the localization efforts for each potential new foreign market, this will complete your globalization cycle.

To sum up, you can think about globalization as an overall strategy with the end goal being a product or service becoming global. Internationalization can be seen as a globalization task that has to be completed so that this goal is achieved. Localization fits right where internationalization ends; with actual content translation and conveying a message from one language to another.

Internationalization + Localization = Globalization

Related Posts

• How to Build a Multilingual Website: 4 Steps to Making Global Sales
• Multilingual Customer Support: 5 Tips to Speak your Customers’ Language
• Why Invest in Multilingual Customer Experience (MCX)?

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World History Project - 1750 to the Present

Course: world history project - 1750 to the present   >   unit 9.

• BEFORE YOU WATCH: Unit 9 Overview
• WATCH: Unit 9 Overview

READ: Unit 9 Overview - Globalization, Internationalism, and Nationalism

• BEFORE YOU WATCH: Frames in Unit 9
• WATCH: Frames in Unit 9
• READ: Data Exploration – Future Population Growth
• Unit 9 Overview

First read: preview and skimming for gist

Second read: key ideas and understanding content.

• How and when did the decolonization and Cold War stories of the last unit end?
• When did globalization “begin”, according to the author? What does it mean to call the era after the Second World War to today an era of “intense globalization”?
• What are some questions we can ask about individual and national sovereignty and rights since 1945?
• What kinds of communities does the author argue exist today?
• What changes to the environment has globalization helped to promote?

Third read: evaluating and corroborating

• What issues raised in this article seem most important to you? Why?
• At this point, would you argue that globalization has been a positive or negative trend for the human species as a whole? On what evidence?

Unit 9: Globalization, Internationalism, and Nationalism

Rights and identity in an age of intense globalization, economics and environment in the age of intense globalization, the present, want to join the conversation.

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Home > Books > Globalization - Education and Management Agendas

Internationalization and Globalization in Higher Education

Submitted: 15 December 2011 Published: 17 August 2012

DOI: 10.5772/48702

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Globalization - Education and Management Agendas

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Douglas e. mitchell, selin yildiz nielsen.

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1. Introduction

The core ideas developed in this is chapter were stimulated by two studies in which the authors explored how globalization is affecting higher education in the USA. The first was a study of how globalization has been transforming the faculty labor market in two-year community colleges ( Mitchell, Nielsen & Batie, 2011 ). That study clarifies why these colleges have dramatically expanded their reliance on a part-time and task-contingent faculty workforce. The second study was a qualitative assessment of how faculty, students and administrators in a four-year research intensive public university computer science department are interpreting the globalization of intellectual, employment and student recruitment aspects of their work ( Nielsen, 2011 ). This study documented ways in which research universities aggressively pursue internationalization of intellectual and organizational dimensions of their work while remaining largely unconscious of the extent to which these changes are related to political, social and economic globalization of the larger culture in which they are embedded.

With these studies as background, the body of this chapter examines the differences between internationalization and globalization in the contemporary development of higher education. Internationalization is seen as something higher education institutions do while globalization is something that is happening to them.

Virtually all institutions of higher education, public and private, are rapidly evolving into global actors, following a trend found in many other industries ( Naidoo, 2006 ). The influence of ‘globalization’ and ‘internationalization’ on the character and behavior of higher education institutions has become a key theme in recent research ( Enders, 2004 ; van der Wende, 2001). Unfortunately, the more frequently these terms are used, the more their meanings get mingled and confused ( Enders, 2004 ). There remain some fundamental differences between these terms, however, and clarifying those differences is an important first step in understanding how higher education institutions are evolving.

Despite being a popular buzz word in the mainstream media, the nature and significance of globalization has proven hard to pin down with enough precision to see how it is influencing policies or practices in higher education. Globalization is an inherently complicated phenomenon, stubbornly resisting easy interpretation and application ( Carnoy & Rhoten, 2002 ). Like globalization, internationalization is also a popular and frequently employed concept, used in varying contexts and for diverse purposes. But the operational meaning of this term remains equally vague and unclear ( Knight, 1999 ; Stier 2003 ; Yang, 2002 ). Knight (1999 ) makes a helpful contribution toward distinguishing these two terms. She argues that: “globalization can be thought of as the catalyst while internationalization is the response, albeit a response in a proactive way” (p. 14).While we like the notion that internationalization is the active ingredient acting to express and reinforce globalization, we do have a minor quibble with Knight regarding his distinction. As the Nielsen (2011 ) study indicates, internationalization can be, and probably should be, thought of as a leading variable, encouraging and facilitating globalization, not just a response variable describing how institutions respond to the presence of globalization in the spheres of economics, politics, culture and social interactions.

In the next few paragraphs we explore in greater depth the nature and dynamics of globalization. This analysis is followed by a synthesis of ideas about internationalization.

2. Globalization

Structurally, globalization is made both possible and necessary by the development of two transforming technologies – transportation and communication (Boyd & Mitchell, 2005). From supertankers to supersonic aircraft, from superhighways to bullet trains, transportation advances have radically penetrated economic markets and breached cultural barriers, making access to material goods, social interactions and political relationships unimaginable two generations ago. Simultaneously, communication technologies carrying hundreds of simultaneous high-fidelity, real-time, voice and video channels by satellites and over the internet are giving global reach to political ideas, competitive price/value comparisons, instant news, social organization networks and dozens of other innovations in the way people access events, ideas, information and opinions. Transportation and communication technology innovations are no longer optional attributes to be used primarily by cultural or political elites. Ordinary citizens have nearly universal access to these technologies and are reaping substantial social, political, cultural and economic benefits. Virtually all important social institutions, as well as entrepreneurs, intellectual, political and cultural leaders, ignore the global reach of ideas and material things now available to nearly everyone at their peril. American economic dominance is being challenged as are the political ideas and cultural mores in all developed nations. From Tiananmen Square to the Arab Spring and the U.S. Occupy movement the world has seen a dramatic melding of technological and cultural change on an unprecedented scale – made possible by technological change, but driven by an emerging global consciousness.

2.1. Two dimensions of globalization

Although the term ‘globalization’ has been around since the early 1960s, developments in the last 20-30 years have largely shaped its character and impact. In recent literature the term is typically used either to characterize international spatial awareness or to highlight a transformation in the processes of interaction among individuals and groups. Tomlison, (1999 ) takes the first of these views – the spatial view – in his book “Globalization and Culture.” He argues that globalization refers to the world as a single place that serves as a common frame of reference for everyone. This notion is shared by many authors including Robertson, who was the first author to use it in the title of a sociological article in 1985 (cited in Currie, 1998 ). Robertson defined globalization as a compacted world where time and space are compressed (cited in Currie, 1998 ; see also Harvey, 1989 ). In this context, globalization also used to refer to the interconnections arising among mass cultures creating a consciousness of living in a “global village” (McLuhan, 1964; New World Encyclopedia, 2007). For observers emphasizing this geographic conceptualization, institutions of higher education are seen as at the center of this compressed world ( Suarez-Orozco & Qin-Hillard, 2004 ). For these observers, the essence of globalization is found in new ways of thinking about space and time (Carnoy, 1999). Higher education institutions help to stimulate and clarify this new way of thinking ( Suarez-Orozco & Qin-Hillard, 2004 ). Geographical space becomes increasingly measured by the time it takes to get from one location to another. As the time necessary to connect distinct geographical locations is reduced, distance or space undergoes psychological and cultural compression ( Tomlison, 1999 ). Entrepreneurial institutions of higher education seek to capitalize on the shrinking geography, while less entrepreneurial ones find themselves pressured to adapt and respond ( Carnoy, 2005 ).

The second view of globalization – the interaction process view – is found in the works of authors such as, Morrow & Torres (2000 ), Giddens (1994 ), Rizvi (2004 ), Altbach (2001 ), Beerkens (2003 ), Armstrong (2007 ) and Spring (2008 ). From this process view, globalization is defined as the practice of growing social interaction and connectivity among people around the world, creating economic, social, cultural, political, environmental, scientific and technological interdependence ( Levin, 2001 ; Marginson, 2007 ). This type of interdependence has been described by Castells as creating a “network society” (1997). Not surprisingly, taking the spatial orientation toward globalization focuses attention more on transportation technologies while the process view tends to give priority to innovations in communication. One should not make too much of this distinction, however, since transportation innovations improve direct, face-to-face, communication while the virtually instant and increasingly high fidelity communications of the internet annihilate spatial barriers when information and idea sharing, rather than exchange of material goods, are the primary goals.

Globalization in both its spatial and process dimensions has been happening to the world for a long time. Only since the mid-twentieth century has its impact on the stability and viability of the modern system of nation-states become recognizable. Before the Second World War and the subsequent abandonment of European colonization of so-called third world nations the system of nation states was not thoroughly established and stable enough to seem to be the “natural order” of political institutions. Although de-colonialization is not yet complete, globalization and internationalization are shaking the foundations of the nation-state system of global political and economic organization.

2.2. Globalization challenges nation state integrity

Beerkens (2003 , p.130) highlights key elements in the pressure system challenging nation-state political integrity. He sees four challenges arising from globalization. First, global is identified as, “a geographical concept distinguishing it from local.” This makes it necessary for nation-states to critique parochial policies, norms and practices by referencing them to those of other nations. Second, globalization is, “a concept of authority distinguishing it from territorial sovereignty.” This means that the global perspective is challenging the very idea of national sovereignty by asserting that nations are, and should be, held to an international accounting of their human rights practices, social welfare policies and protection of political liberties. Third, globalization is seen as, “a cultural concept distinguishing it from isolation.” Nowhere is this more visible than in the uprisings of the Arab Spring which produced a transnational sense of political solidarity or in the worldwide dissemination of popular music, folk art and dramatic films. Fourth, Beerkens (2003 , p. 130) sees globalization as, “an institutional concept distinguishing it from national.” On this point, his summary formulation is a bit fuzzy, but the essential point is that social institutions of all types increasingly derive their legitimacy and, therefore, their social and political support, by reflecting worldwide standards of organization and operation. For our purposes in this chapter, this globalization of institutional forms can be applied directly to colleges and universities.

The political arena of globalization cannot be separated from social, cultural, and economic forces that shape the state’s position. While global processes are often seen as beyond the control of nation-states, the role of the state has remained key in the expression of social interests and representation of social groups or classes that benefit or suffer from public policy formation in response to globalization ( Shaw, 1999 ; Morrow, Torres, 2000 ). As the control of the economy is transferred from the public to the private sector which is broadly the main argument of the neo-liberal economic agenda, there has been a shift in the political platform of institutions (Cohen, 2007). Higher education institutions that pursue an institutional integration to the new economy have benefited from these political processes ( Slaughter & Rhoades, 2004 ).

An example of this can be seen in many states having legal requirements that faculties reveal patentable findings of research to make certain that colleges and universities have the opportunity to review them for commercial possibility ( Chew, 1992 ). Another feature of globalization on institutional policies is the cross-national policy borrowing by institutions and forming international policies among institutions ( Lingard, 2000 ). Appadurai (1996 ) argues that the policy ideas flowing globally are also linked to international political organizations such as the EU, World Bank, IMF, UN, UNESCO and OECD. These organizations or systems are largely institutionalizing mechanisms and they represent “a complex and ungovernable web of relationships that extends beyond the nation state” ( Lingard, 2000 ; Waters, 2001 ).

2.3. Globalization is transforming higher education

From the social process transformation perspective, globalization is having a transformative effect on the core functions of institutions of higher education. Under the influence of social interaction globalization, higher educational institutions are developing a consumerist mentality which transforms education into a product exchangeable in an open market ( Marginson & Considine, 2000 ; Altbach, 2004, Slaughter & Rhoades, 2004 ). Slaughter and Leslie argue that “the academy has shifted from a liberal arts core to an entrepreneurial periphery,” in which “marketization” of the academics leads to the rise of “research and development with commercial purpose” (1997, p. 208). This commercial purpose allows higher education institutions to compete for the monetary or human resources available globally to benefit their institutions ( Slaughter & Rhoades, 2004 ).

Economic globalization is also turning knowledge into a commodity; a commodity whose value depends on the ease and security with which it is created, stored and transferred from producers to users, as well on its utility in the production of other goods and services. As knowledge is being commodified, however, social, political and cultural globalization turn knowledge production and distribution into symbolic status and power resources with significant consequences. Seeking the power and prestige of symbolic knowledge, higher education institutions are encouraged to pursue internationalization of recruitment faculty and students and to secure recognition for knowledge production. Importantly, the Nielsen (2011 ) study shows, however, that the faculty and administrators pursuing this internationalization remain largely unconscious of how this activity is reinforcing the very globalization forces that are reshaping their work force and productive processes.

Globalization in academy also constitutes of a wide variety of components including higher education institutions, the academic fields, scholars, and students as contributing factors. These components each hold a different position in the identification of globalization in higher education.

2.4. Market competition divides as well as integrating institutions

The institution of higher education has always been international in scope with the exchange of ideas, scholars and students, but modern technology, the internet, communication technologies, the increasing flow of students and highly educated scientists from all over the world as well as scientific investments, patent activities and R & D make globalization more visible in the scientific field today ( Heylin, 2006 ). The arrival of computer networks and systems, and the challenges they bring cannot be solved without international collaboration, such as adapting software usage around the world, the internet not having a single owner, overcrowding of the internet and selection of knowledge. For example, a software developer in California needs to collaborate with researchers in India in order to have adaptable products. At the center of these challenges are current national and international policies. For example, while developing technology with collaborations among different nations, agreements can be made to protect intellectual property but enforcements may not be possible. For example, the DVD copying is solved by having six different regions around the world. A DVD bought in Europe does not work in North America because of regional differences encrypted in the DVD. However, as digital technology advances and more and more information is online, controlling piracy again became an issue. As the concern over controlling technological innovations increase, we see more and more higher education institutions dealing with issues to manage R&D and protecting ownership. The way institutional policies are formed in the light of scientific and technological advancements reflect how the institutions respond to globalization. ( Jenkins, 2003 ).

2.5. Globalization is transforming social relationships

Technological and economic changes have an influence on social and cultural structures. Globalization has created a new social environment ( Kellner, 2002 ). This social environment has been described in terms of ‘the widening, deepening and speeding up of world-wide interconnectedness in all aspects of contemporary social life’ ( Held et al., 1999 , p. 2). It is a process which symbolizes a transformation in the spatial organization of social relations and connections. These connections can be evaluated in terms of their amplitude, strength, speed and impact generating global or local flows and networks of activity, interaction, and the exercise of power ( Held et al., 1999 ). Social groups get closer together but at the same time persistently try to maintain a more intentional focus on their localized identities ( Chaney & Martin, 2004 ; Knight 2004 ; Yang, 2002 ) In social and cultural perspective, globalization can be seen as a double-edged sword. Chomsky refers to globalization as international integration ( Chomsky, 2006 ). This simple explanation can hold divergent worldviews socially and culturally. For example, globalization can bring people who share certain beliefs, professions or causes together such as the professional cultures, Turkish pop music fans, holocaust survivors, Muslim extremists or human rights activists to form new forms of societies. At the same time, as the national communities get more pluralized, cultural and economic differences can form divisions among the people who share the same locality ( Cevre, 1995 ; Hannerz, 2004).

2.6. Research universities play a prominent role

Armstrong (2007 ) introduced a new conceptual framework through which to examine the impact of globalization on US higher education institutions. His framing of the process of globalization in the international arena sees higher education institutions as hubs. Armstrong depicts a new model of institutions where students and faculty earn degrees from various international locales through global partnerships and satellite campuses thereby categorizing such institutions as non-traditional in the sense that they have no geographical borders. In this sense, institutions branch out and become global as opposed to just exchanging people and scholars with a fixed location. They expand their concept of being global as having international students, curriculum and activities, and having study abroad programs to a different order of having programs overseas which rely a great deal on the partnerships between the people from different educational institutions around the world ( Armstrong, 2007 ; Scott, 2000 ).

When exploring globalization especially in the academics, we see that research universities play a particular role with global competition and high number of international students. Armstrong & Becker (2004 ) discuss in a lecture series on the subject of Higher Education and the Global Marketplace, the present situation, the emerging environment, and future positions of US research universities. Altbach and Knight’s (2007 ) article discusses the motivations behind the global activities of research universities. Armstrong and Becker explain the high cost associated with supplying research, instruction and social environment for students in undergraduate, master, and doctoral programs serving mostly traditional students (2004). Traditional students are identified as the ones that study on campus. Education in these universities is seen as investment in the future of a private market economy. Therefore, as the global economy depends on skilled workers, the need for educating more people to participate in this economy gains importance ( Armstrong & Becker, 2004 ).

Altbach and Knight discuss the motivations of research institutions to participate in the global arena in a different light. They explain the motivation of expansion also includes enhancing research knowledge and capacity as well as to increase cultural awareness in these organizations ( Altbach & Knight, 2007 ). Both articles stress the point that the higher education institutions, particularly research institutions that participate in the global arena do so not only with the traditional ways of having international students and curricula, but also expanding to different locales in the world by branch campuses and online collaborations.

In sum, this brief analysis of globalization reveals that wide-ranging interconnectedness trends are evident, and they directly have an influence on higher education institutions (Altbach, 2004). Many of these institutions, however, struggle as they have to respond to an ever-increasing set of global challenges such as competition or handling increasing international populations while remaining confined by institutional structural principles passed on from an earlier, more state-centered world

(Najam, Runnalls & Halle, 2007). Academic systems and institutions try to accommodate these developments in different ways; internationalization is one way of responding to globalization ( Altbach, 2001 ).

3. Internationalization: The engine of globalization

As distinguished from globalization with its emphasis on worldwide conditions that influence perceptions of space, mobility of actions, the nature of communication and orientations to social interaction, internationalization focuses attention on the intentional actions of individual, groups and social institutions as they actively seek to cross national borders in pursuit of social, economic, political or cultural benefits. Looking at higher education institutions, Knight (1999 ) offers a working definition of internationalization in this domain. She sees internationalization as a matter of integrating transnational elements into the, “purpose, functions or delivery of post-secondary education” (p. 2). That is, colleges and universities are internationalizing their behavior when they reshape their purposes to attract international students, to deploy their programs across national borders, concentrate on internationally advantageous educational program niches, restructure work roles or compensation systems to recruit, retain or manage employees, etc.

3.1. World citizenship consciousness

One of the more powerful ways in which internationalization of action arises is through reconceptualization of citizenship. Rather than seeing themselves as citizens of a region, cultural subgroup or nation state, ordinary people are increasingly seeing themselves as entitled to, and ready to participate in, opportunities for interaction, work and consumption on an international scale. Individuals see themselves as citizens of the world, free to move about, trade experiences, seek educational opportunities, and pursue work or entertainment. Once they acquire this world consciousness they begin to find national borders inconvenient annoyances, inhibiting rather than enhancing security and opportunity. Though new and rapidly expanding in many domains, for students and faculty of higher education institutions, this kind of internationalization is not new. Since the medieval times, universities have been internationally oriented. For example, academics and students moved from Cairo to Bologna to Oxford in order to take advantage of the academic elites of those locations ( Stier, 2003 ). Contemporary internationalization of higher education has its roots in this academic mobility of students and scholars (Scott, 2006). Scholarly exchange of faculty and students involved with scholarly inquiry has been a hallmark of university internationalization throughout their history ( Vestal, 1994 ).

Internationalization has become more complex and comprehensive in recent decades. As noted during Congressional hearings on the International Education Act (IEA) of 1966 there is now a broad consensus that internationalization of education encompasses three major areas: a) movement of scholars and students seeking training and research, b) convergence in curricular content, and c) structural arrangements that provide cross-border technical assistance and educational cooperation programs (IEA, 1966). In 1994, Kerr, Gate & Kawaoka gave less emphasis to the structural components of international cooperation, but otherwise reaffirmed these components of internationalization, In research reports prepared for ACE (2002) and the International Association of Universities (IAU) (2003) the mobility of students and faculty were seen as the primary mechanisms of internationalization ( Knight, 2003 ).

3.2. Collaborative science and scholarship

Internationalization in higher education is also evident in scholarly collaboration and the development of international standards in academic writing. Students move to other countries for training and researchers join forces internationally for collaborative research and a substantial number cross international borders (often several times) during the course of their academic careers. Moreover, by the start of the twenty-first century most prominent academic journals were routinely accepting submissions from any part of the world and trying to apply universal criteria in reviewing them ( Martin, 2007 ).

There are many ways by which technology is influencing this international collaboration (Castells, 1999). “Big Science” like that involving collaborative space exploration or the CERN collider in Geneva, Switzerland routinely involves multinational teams of researchers and multinational financial support. Science oriented industrial processes are also transformed into international endeavors by new forms of technology such as nanotechnology, biotechnology, biometrics, network technology, and information technology ( Taylor, 2001 ). These developments require a more educated work force and open up global markets for products and ideas, encouraging higher education institutions to take an international stance in order to respond ( Carnoy, 2005 ; Carnoy & Rhoten, 2002 ; Altbach, 2004; Marginson, 2007 ).

The internationalization of higher education institutions focused on research and cross-national teaching is facilitated by multinational research and development agreements with international business and industry organizations ( Marginson & Considine, 2000 ; Slaughter & Rhoades, 2004 ). Such agreements call for the movement of personnel and facilities as well as ideas.

3.3. Dispersal of operations: Campus and center establishment

One prerequisite for success in the global marketplace is decentralization of service delivery so that the specialized needs and preferences of customers and clients can be served efficiently and effectively. This decentralization, combined with the centralization of production standards, is achieved by having a long list of highly standardized products and services that are mixed and matched by front line workers ( Wallace & Brady, 2001 ). In computer manufacture, for example, a wide variety of highly standardized parts are produced in manufacturing plants all over the world. The parts are to exacting standards so that they are delivered ready for “off the shelf” assembly into highly individualized personal computers (Levinson, 2005). Labels like “made in China” or “made in America” no longer make sense as parts are manufactured in many different countries and their assemblage no longer has a singular national identity (Griffin, 2004, p.251).

Sharing knowledge and production of finished goods is rapidly leading to the “spatialization” of work. “Spatialization” is a term coined by Wallace & Brady (2001 ) to characterize work that is no longer bound to a particular geographical location (cited in Mitchell, Yildiz & Batie, 2011 ).This spatialization is reflected in the explosion of on-line, distance education programs, and the proliferation of satellite research centers and instructional campuses, and the restructuring of professional work into limited obligation, contingent contracts that commission the teaching of courses one at a time and remove full-time and tenured status from the working contracts of many teachers and staff specialists. An example, is seen in the number of students Turkey’s Anadolu University is serving in many different countries – their numbers have more than doubled in the last decade; they are now serving more than a million students (International Center for Distance Learning, Anadolu University). The University of London and Stanford University are also in the top ten of distance education universities in the world each with students living in over 180 countries (ICDL).

Studies have identified that in order to give way to cultural convergence; institutions must consciously increase their internationalization efforts (U.S. Department of Education, 1979; Clarke, 2004 ). Consequently, internationalization is both a response to globalization and a causal force hastening its further development. By having a chance to share cultural differences or personal similarities by studying in the same academic fields, people from distant locations in the world converge toward a common culture and loyalty to the same institutions (UNESCO, 2004).

3.4. International entrepreneurialism

Development of an international market for college level research and teaching has stimulated a sharp increase in university entrepreneurialism. Increased availability of knowledge creates competition among higher education institutions to keep up with the growth in specialized knowledge and control a market share in its development and distribution. Institutional status depends on being able to contribute to acquisition and dissemination of knowledge at its frontiers. To remain competitive, higher education institutions require increasingly substantial fiscal resources. And gaining needed financial support, requires establishing and maintaining a reputation for academic excellence. This reputation, in turn, is enhanced by pursuing the very best student and faculty talents even if it means investing heavily in recruiting across national borders.

Academic capitalists seek to accumulate information resources and to control flows of information within and across national boundaries. As a particular type of economic capital information can be compared with physical capital that is relatively static often tied to a specific location and fiscal capital that is easier to move and leverage for marketplace advantage but remains scarce and difficult to reproduce or pirate. Information capital, by contrast, is much more volatile than other forms of capital because it is relatively easy to replicate and thus be moved to a new location without disappearing in its current location. Thus, information is hard to hoard or otherwise control without very strong transorganizational and transnational agreements on patents, copyrights, and access to institutions of advanced education. It is for these reasons that the internationalization of higher education and the movement to contingency employment of higher education faculty are playing a vital role in facilitating and directing the progress of globalization.

During the Cold War, the motivation behind internationalization in United States higher education institutions was highly political and contradictory. Although the drive for internationalization was seen as a sign of American imperialism by the rest of the world; US policymakers’ presentation was on the lines of an initiative for peace and mutual understanding (de Wit, 1995). This view of international education as a force for peace has been a dominant one in US politics and higher education over the past 50 years. Following World War II, this political rationale was the dominant one in initiatives to internationalize higher education and stimulated investments like the European Marshall Plan the OECD and UNESCO. But with the end of the Cold War, political emphasis slowly gave way to an economic rationale ( Knight, 2003 ). Economically, there is an argument that globalization is changing the goals of higher education in order to mirror markets. This notion is labeled as “academic capitalism” to symbolize a systematic creation of policies to make marketable activities possible, changes in the connections with the states, private organizations to support research; basically a change that prioritizes potential revenue generation rather than general expansion of knowledge ( Slaughter & Rhoades, 2004 ). This change in the establishment of higher education institutions can be interpreted as a result of economic globalization. Advanced knowledge is seen as raw material that can be owned, marketed and sold. In addition, rising private corporations need well educated workers that influence the curricular selections ( Schmidt, 2002 ; Slaughter & Leslie, 1997 ).

Partly because the core concepts of globalization have become an ideology driving organizational development and management strategies, and partly because measures of standardized educational attainment are now seen as reliable and appropriate, community colleges are being intensely pressured to adopt globalized marketing principles in their policy and management processes ( Levin, 2001 ). Unfortunately, community colleges have only been able to develop systems for responding to half of the globalized equation – they produce an enormous variety of specialized educational programs, responding to virtually any recognizable community preference or demand. Cain (1999, p. 3) makes this point by comparing community colleges to Wal-Mart stores, saying, “The community college extends the one-stop shopping idea to education. If a need exists, a community college administrator is searching for a way to meet it”. But the colleges are sorely lacking in the capacity to centralize the standards for producing these educational programs. Lack of standardization is partly the result of the traditional emphasis on academic freedom in all colleges and universities. More often, however, it is simply the result of an inability to clearly specify what instructional standards are required, and a general weakness in the ability of college administrators to hold faculty accountable for meeting whatever standards they are able to specify (Grubb, 1999; Levinson, 2005).

3.5. Neo-liberal managerialism: The mechanism of competition for resources

Internationalization of higher education has generated an important shift toward a much more aggressive managerialism, often referred to as neo-liberalism. This aggressive managerialism is aimed at transforming the nature of work and restructuring relationships between employers and workers. Ideas pioneered by David Gordon (Gordon, 1980) and creatively advanced by Wallace and Brady (2001 ) depict the development of the new economy as grounded in the inevitable tensions between labor and management as they seek to establish workplace rights and responsibilities within the evolving technologies of production and management. These scholars argue that industrialization, with its advancing complexity and intensification of workplace technologies continues to create distinctive restructuring of labor/management relationships. In an early industrial period direct supervision of workers by the owner/entrepreneurs for whom they worked was made both possible and necessary as industry needed to separate workplaces from domiciles. Supervisory control was simple and direct because the entrepreneurs were craftsmen themselves and typically worked alongside their employees. This served to obscure social class differences while generating loyalty from the workers (Gordon et al, 1982).

As production technologies grew, a distinctive managerial class came into existence, creating a new framework for labor management relations and work supervision. The idea of “scientific management” emerged. Scientific management focused on technical control over worker activities through the disaggregation of tasks and utilizing “time and motion” studies of how each component task can be most efficiently performed to guide managerial supervision. Worker organizations were craft unions empowering skilled workers performing the same generic tasks (D. Gordon, 1980, Sennett, 1998). As intelligence gradually moved from the workers into their machines, however, supervision became more bureaucratic, and there arose a sharp distinction between the “primary labor market” for skilled and professional workers whose tasks required autonomy and managerial support (rather than supervisory direction) and a “secondary labor market” for unskilled workers who were managed through direct supervision. Until industrial unions developed, unskilled workers could be, and often were, easily replaced to control costs and discourage worker collusion (Gordon, Edwards, & Reich, 1982). Public sector unions, including those embraced by community college faculty, adopted the industrial union paradigm.

Wallace and Brady (2001 ) argue that we are now moving into a fourth period in which labor/management relationships are driven by the technologization of the work itself. They call this fourth period the period of work “spatialization” to highlight two key components of the new worker/manager relationship. First, spatialization highlights the fact that the application of advanced digital technologies has resulted in work that is no longer place bound to a particular factory or work site. Management, through detailed specification of measurable work standards, can farm out various components of almost any production process to far away places and still maintain tight control over its quality, quantity and cost. This broad distribution of work components enables managers to both seek the most economical venue for production and, simultaneously, undercut the power of worker organizations by simply moving production away from organized worker environments (Burris, 1993; Harrison, 1994; Vallas & Beck, 1996; Wallace & Brady, 2001 ).

With the emergence of internationalism in higher education labor/management relationships are shifting rapidly away from permanent, full-time jobs and toward work that involves contingent, intermittent, task contracting that is not tied to specific work locations. New managerial technologies make it possible to supervise outcomes rather than task performance , and to employ workers only for the amount of time needed to complete specified tasks (Iversen, 2004; Sennett, 2006; Carnoy, 2000). This strategy has dramatic consequences for work role definitions as workers are no longer expected to develop loyalty to their firms or to require fringe benefit packages that keep them tied to a particular firm. “Loyalty is dead” Sennett (1998, p. 65) asserts, and, therefore, “each vigorous employee ought to behave like an entrepreneur”. Crucial to this redesign of work, however, is the development of managerial tools for actually monitoring production results (and assigning responsibility for those results to specific workers), rather than supervising the execution of specific tasks (Applebaum & Albin, 1989). Think, here, about the new strategies for building products as diverse as automobiles, computers and household appliances. These products are now designed to consist of highly standardized modular parts whose production can be spatially distributed. Construction, repair and maintenance of these products consists of assembling or replacing the appropriate modular components. This work can be monitored remotely and technologically (Griffin, 2004). Diagnostic instruments identify problematic modules, and worker training focuses on reading the diagnostic instruments and adjusting or replacing the appropriate module. Moreover, management can fairly easily test whether any given worker knows how to undertake the identification and proper installation of modular parts. Thus workers can be hired contingently, performing tasks on a “piece work” basis.

The shift is also visible in the large scale shift of manpower and capital from material manufacturing to information processing industries (Reich, 1992; Rifkin, 1995). As manufacturing production jobs decline in the highly industrialized countries, these jobs are replaced by new jobs that require higher levels of education to keep up with the everchanging technology (Carnoy, 2000). As one economist observed three decades ago, the average machine has at least a high school diploma and is learning more every year (Theobold, 1972). The widely noted shrinkage of the American middle class is, no doubt, substantially linked to the awesome gap that has developed between what it takes to tend the new production machinery and what it takes to finance , design, build and manage it. That said, the real impact of technology on skills according to Spenner (1985), Freeman & Soete (1994) and Carnoy (2000) depends on the distinct qualities of the labor force and the relation between the economy and the educational system. As Carnoy (2000) puts it “Technology seems simultaneously to de-skill and re-skill the labor force” (p.43).

For many Americans, community colleges are the point of entry into the information age economy. “The ‘technical revolution’ created a plethora of specialized, high-skilled jobs that fueled a need for workforce training, which community colleges were willing and able to provide expeditiously” (Levinson, 2005, p.47). They sort and assign their students to future roles in that economy. Their task, already enormous and growing more difficult all the time, is to assist their students in moving from service and production workers, who live to support the information economy infrastructure, into the ranks of knowledge workers who are capable of organizing and managing the information systems on which it is based (Griffith & Connor, 1994; Cain, 1999; Levinson 2005). Business thinker Peter Drucker commented on this subject in 1977, saying that “The substitution of knowledge for manual effort as the productive resource in work is the greatest change in the history of work, which is, of course, a process as old as man himself…Education has moved from having been an ornament, if not a luxury, to becoming the central economic resource of technological society” (cited in Griffith & Connor, 1994, p.78). To respond to these changes, the community colleges need a faculty that is both smarter than the average machine and capable of teaching students how to become reasonably efficient lifelong learners (Cohen & Brawer, 2003). This task is doubly daunting because community college faculty have high workloads, low levels of professional support, and typically are working with students who have a lot to learn just to catch up with more advantaged peers who are attending the nation’s four-year colleges and universities (Grubb, 1999; McGrath & Spear, 1991; Kozeracki, 2002).

3.6. Neo-institutionalism: Prioritizing legitimacy in the nation-state

Another dimension of internationalization is the development of organizational designs often characterized as a “neo-institutionalism.” This new framework for organizational theory is replacing bureaucratic organizational theory as the dominant paradigm for analyzing complex organizations. Beginning in the 1970s with a seminal article by John Meyer and Brian Rowan (Meyer & Rowan, 1977), organizational sociologists increasingly emphasized the fact that many organizational activities often are not rationally linked to productivity goals. Instead, they emerge as a means of securing and maintaining organizational legitimacy in the eyes of governmental, professional and community groups (Powell & DiMaggio, 1991).

Early in the twentieth century the German sociologist Max Weber (Weber, Henderson, & Parsons, 1947) convincingly characterized rational bureaucracies as the archetypical modern social organizations. In this conception, organizational design is directed toward realizing production goals. Fredrick Taylor (Taylor, 1911) applied the Weberian concepts and used the idea of rational organization to develop guidelines for “scientific management” of bureaucratic production (Ray & Reed, 1994). By the 1970s, however, there developed a substantial reconceptualization of how complex social organizations are created and sustained. Research revealed that, within their boundaries, organizations are cultural systems with traditions, moral (or perhaps immoral) value systems, and a rich set of symbols and rituals for creating and expressing shared meanings capable of establishing social identities (not just work roles) for organizational members (Senge, 1990; Bolman & Deal, 2003). Beyond the organizational boundaries, emergent scholarship was documenting the broad dependencies of all organizations on the ways in which environmental actors – civic governments, professional associations and community groups – are willing to endorse their legitimacy by embracing their organizational missions and approving their operational routines. As a result, contemporary organizational sociology has raised to central significance the institutional rather than the bureaucratic aspects of complex social organizations (Rowan & Miskel, 1999; Scott, 1992). By “institutional” these sociologists mean that the moral, normative and symbolic dimensions of organizational behavior are more important to organizational stability and success than are rational, means-ends productivity considerations. In short, the new organizational sociology proclaims that “legitimacy has trumped productivity” as the fundamental standard for evaluation and support (Mitchell, 1996; Powell & DiMaggio, 1991). The internationalization of universities puts this need for a coherent culture at the center of organizational effectiveness, creating significant tensions between the entrepreneurialism and neo-liberal managerialism with their emphasis on competitive processes and the neo-institutional corporate need for a more collaborative and culture building process which is more fragile in character and requires more substantial social interaction than is often produced in international educational ventures.

Neglect of the neo-institutional aspects of international cooperation was seen In the Nielsen study, where a major finding is that research university faculty did not consider cultural globalization to be something emerging from their international actions. They intellectually recognize globalization with world citizen consciousness as a phenomenon encountered in their international relationships, but do not see that their actions are building that citizenship consciousness. They do not account for the actions of their academic department in terms of global consciousness or interaction. Rather, they interpret their actions almost entirely in terms of competitive entrepreneurialism – raising the institutional ranking of the department, conducting good research, getting good students, getting more grants (money), etc.

Internationalization of student recruitment and competitive knowledge production reinforces the entrepreneurial side of international behavior, and deflect attention away from the impact of this competition on the development of multinational globalized and institutionalized forms of collaboration. As a result, observers note the emergence of global norms and cultures, while the students, faculties and university administrators who are producing these changes see themselves acting in largely self-interested and nationalistic ways. Ironically, it appears that the harder universities strive to mobilize human capital resources and achieve national prestige and reputations for excellence, the more they succeed in globalizing the higher education culture and produce a higher education ranking system which has common international metrics of success.

For the less prestigious community colleges, the competition of resources, students and high status internationalized programs leads to dramatically higher levels of neo-liberal management behavior through part-time contingent faculty employment and rapid changes in instructional program emphases. For these institutions, the reality of globalized educational norms means unrelenting pressure to advance instructional programs in response to global knowledge dissemination and secure control over the employment and assignment of teachers to allow for sharply increased managerial control.

3.7. The yin and yang of internationalization and globalization in higher education

We started this chapter with an explanation of globalization, arguing that internationalization is both a response to, and a contributing factor facilitating, globalization. This was illustrated with examples from two studies exploring globalization and internationalization in higher education settings. Like the Yin and Yang forces in ancient Chinese philosophy internationalization and globalization work together to transform the self-understanding and organizational activities of both research universities and community colleges. Grounded in a revolution in transportation and communication technologies, globalization and internationalization operate together to create a global interdependence in economics, politics and culture.

With the Nielsen (2011 ) study of a research university department, we see international faculty and students moving freely around the world, contributing to globalization. Internationalization of higher education allows them to cross borders and institutions, challenging their national loyalties while strengthening their intellectual and institutional loyalties. Institutions like this rely on this shift in loyalties to bring top talent from around the world to work at a prestigious university. Loyalty to institution and field of endeavor are proving stronger than loyalty to national culture, orienting university scholars to pursue international legitimacy and prestige.

In Community colleges, it is not the loyalty to the field that provides the institution the legitimacy for survival. It is meeting a market need. The contingency of labor is legitimate because it benefits the institution financially and enables it to survive in the highly competitive global economy. The institution strives for ever greater flexibility to respond to rapidly changing market conditions and, in doing so, the community colleges operating in a global culture needing to quickly respond to technological advances and the changing job opportunities brought about by the globalization of market structures.

In sum, globalization is allowing a new order in the world of higher education. Going from political to economical purposes, nationalism giving way to world citizenship, culture depending on the identified groups more than geographical locales, organizational legitimacy more and more depending on global name recognition and expansion, allegiance to the organization giving way to entrepreneurialism and most of all control of knowledge dissemination; these forces have altered the fabric of higher education. Adaptation is a survival tool. Higher education organizations that fit, participate and welcome global changes will survive the best.

• 1. American Council on Education (ACE) Center for Institutional and International Initiatives 2002 Beyond September 11: A comprehensive national policy on international education. http://www.acenet.edu/bookstore/pdf/2002_beyond_911.pdf
• 9. American Council on Education (ACE) Center for Institutional and International Initiatives 2002 Beyond September 11: A comprehensive national policy on international education. http://www.acenet.edu/bookstore/pdf/2002_beyond_911.pdf
• 10. Anadolu University. http://www.anadolu.edu.tr/
• 37. International Education Act of 1966 New York: Education and World Affairs.
• 55. New World Encyclopedia (2007).
• 56. http://www.newworldencyclopedia.org/entry/Globalization
• 71. United Nations Educational Scientific and Cultural Organization (UNESCO) 2004 Higher education in a globalized society. Paris, France: UNESCO.
• 72. United States Department of Education (USDE) 1998 General definition of institution of higher education. Section 101.
• 73. http://www.ed.gov/policy/highered/leg/hea98/sec101.html.

© 2012 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution 3.0 License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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Localization, Globalization, Internationalization: What's the Difference?

The subtleties that distinguish "going global" terminology

Localization, globalization, internationalization: these all sound like similar concepts, and indeed many people often use them interchangeably. However, subtle distinctions set them apart. Understanding the differences is key for anyone tasked with helping a company " go global " —and ensuring their brand message resonates globally.

Researchers have created the acronym GILT (globalization, internationalization, localization and translation) to refer to the activities that businesses engage in when they expand beyond national borders, Of these terms, "translation," which refers to the process of converting text from one language to another, is the most readily understood. But what distinguishes the other three?

In this article, we'll explore the similarities and differences between globalization, internationalization and localization and flag some of the potential pain points associated with each.

What is Globalization?

Globalization refers to any activity that brings the people, cultures and economies of different countries closer together. In business, "globalization" refers to practices by which organizations become better connected to their customers around the world. This includes any aspect of operating in different national markets, from product design to marketing. 

Globalization Examples

If that’s still a bit vague for you, here are a few examples of globalization in the world of business: 

• Online marketplaces like eBay and Amazon make it easy to buy products from businesses or individuals on the other side of the planet. Even products sold in traditional brick-and-mortar stores like Target often make stops in several different countries before reaching their final destinations. Consumer electronics, for example, are commonly sourced from raw materials in India, made in China, then sold in America.
• Many large restaurant chains, like McDonald's, operate in dozens of countries. McDonald's specifically has franchises in upwards of one hundred countries, and diners around the world recognize its brand and logo.
• Netflix operates in more than 190 countries and customizes content offerings for individual markets with subtitles and programming in local languages. 
• The instantly recognizable "swoosh" logo of Nike transcends different cultures and languages. Nike has formed partnerships with athletes who play a variety of sports in many different countries and uses these endorsements to support its worldwide expansion. 

There are many benefits of globalization for both companies and consumers. The impact of global inter-connectivity has been a boon for the world economy in recent decades and has increased global GDP from $89.6 trillion in 2010 to a projected $149 trillion in 2021 . Globalization has come hand-in-hand with the most transformational advances of the 20th century, such as international air travel and the Internet. 

The rise of globalization also means that there has arguably never been a better time to build a business into a global company. There are a huge range of opportunities available to companies looking to expand, from access to a global talent pool to an increased volume of information that can be used to position a business. As it gets easier to enter new markets, there are also more product niches to take advantage of—and new customers to attract.  

However, to truly go global takes a lot of preparation. Two of the most important steps in this process are to localize and internationalize your product. While both localization and internationalization fall under the banner of globalization, there are some differences between the two. We’ll explore these further in the following sections. 

What is Internationalization?

Internationalization is a corporate strategy that involves making products and services as adaptable as possible, so they can easily enter different national markets. This often requires the assistance of subject matter experts. Internationalization is sometimes shortened to "i18n", where 18 represents the number of characters in the word. 

Products intended for use by speakers of multiple languages typically undergo an internationalization process. For example, IKEA internationalizes the  assembly instructions for its furniture  by using only diagrams and illustrations, without including any text that would need to be translated. Products with instructions that do require translation are still often written with the goal of being as culturally-neutral as possible. This, of course, is easier said than done.

In the case of software products and electronics, internationalization involves a number of different concerns:

• Data encoding:  The ASCII character encoding is sufficient for texts in most Western European languages. However, languages that use non-Latin alphabets, such as Russian, Chinese, Hindi and Korean, require larger character encodings like Unicode.
• Hardware support:  Software designers must consider that certain hardware devices may not be available in all countries.
• User interface:  If a software application will be translated into multiple languages, the user interface needs to include enough space for the text in all of these languages.

According to most definitions, companies must first internationalize before they can localize a product. In the next section, we'll discuss the difference between internationalization and localization.

What is Localization?

Localization is the process of adapting a product to a specific target market. This usually happens after internationalization has taken place. Where internationalization develops a product that’s easy to adapt for many audiences in many different countries, localization takes that product and makes it highly relevant for one specific market. 

As mentioned, McDonald's operates over 30,000 restaurants in 100 countries. Its worldwide expansion is an example of globalization. By design, the corporation creates a menu adaptable to various local tastes and customs. This policy is an example of internationalization. 

Many of the McDonald's restaurants in Israel serve kosher food and drink and close during the Sabbath and Jewish holidays. McDonald's has also opened a meat-free restaurant in India, a country in which much of the population does not eat beef or pork. In both cases, McDonald's has maintained its global brand identity but tailored its products and services for local markets. These cases exemplify localization. 

How is Localization Different from Translation?

In short, translation refers to the conversion of written text from one language to another, while localization is the process of making a product or message resonate with a specific target culture—as if it were created there in the first place. 

For most products, localization includes—but is not limited to—translation. There are many  localization challenges . It requires consideration of multiple cultural factors that transcend the words a company uses to describe or explain its product.

When creating its film  Inside Out , for example, Pixar  modified its animation  to accommodate multiple versions of a scene where a character points to and reads a sign. In the Arabic version of the film, the character motions from right to left, rather than the left-to-right direction the animation takes in the English version of the film. 

Here are just a few of the important considerations companies need to address when localizing a product:

• Naming conventions , such as whether to put surname or forename first
• Telephone number formats
• Date and time formats , such as DD/MM/YYYY and MM/DD/YYYY
• Currency , which would need converting into an appropriate value in the local currency
• Writing direction , which is left to right for many languages, but right to left in Hebrew and Arabic, and vertical in some Asian languages
• System of measurement , such as metric or imperial
• Punctuation , such as quotation marks ("") in English, low quotes (,,") in German, and guillemets (<<>>) in French.
• Symbols and pictograms , including check marks, stop signs and the use of color to convey information
• Electrical voltages ,  frequencies   and   plugs
• Legal requirements , such as the GDPR for the use of European Union citizens' personal data

Apple's Siri virtual assistant represents a product that has been successfully localized. When users ask Siri for the weather report or directions to a specific address, Siri can provide the answer in Celsius or Fahrenheit, or kilometers or miles respectively, depending on the user's location. Users can even select their preferred accent for Siri's voice. In English, the choices include American, Australian and South African. 

When building a website, developers should have a robust website localization strategy by addressing these concerns during the planning and design phases. Successful internationalization precedes successful localization. 

For example, currencies such as the Chilean peso and the Japanese yen do not use subunits in practice, because each unit is so small—one U.S. dollar is equal to roughly 700 Chilean pesos. Therefore, e-commerce websites that Japanese developers design for a Japanese audience use only a single-integer variable. 

If the website expands to a U.S. audience, however, the developers will need to add another variable to store both units and subunits (i.e. dollars and cents) or convert the integer variable to a decimal. This process can become both time-consuming and bug-prone for highly complex code bases.

The Difference Between Globalization, Internationalization and Localization 

Globalization  refers to the processes by which a company brings its business to the rest of the world.

Internationalization  is the practice of designing products, services and internal operations to facilitate expansion into international markets.

Localization  is the adaptation of a particular product or service to one of those markets.

Whenever you anticipate expanding a product to multiple national or even regional markets, you need to consider internationalization and localization. Planning for these processes before the project begins will help you design products that satisfy users of all regions, cultures and languages. 

Lionbridge has over two decades of experience in producing and adapting content for international audiences. Whether you’re looking to internationalize your product or localize your  website, our team of experts can help you develop a product and message that resonates around the world.  Contact us  to find out how we can help.

Alternatively, download our  Buyer's Guide for Localization Services  and find out how to choose the perfect partner for translation and interpretation services.

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Internationalization: Definition, Examples, and Benefits

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest.

Investopedia / Michela Buttignol

What Is Internationalization?

Internationalization describes the process of designing products to meet the needs of users in many countries or designing them so they can be easily modified, to achieve this goal. Internationalization might mean designing a website so that when it's translated from English to Spanish, the aesthetic layout still works properly. This may be difficult to achieve because many words in Spanish have more characters than their English counterparts. They may thus take up more space on the page in Spanish than in English.

In the context of economics , internationalization can refer to a company that takes steps to increase its footprint or capture greater market share outside of its country of domicile by branching out into international markets. The global corporate trend toward internationalization has helped push the world economy into a state of globalization , in which economies throughout the world become highly interconnected due to cross-border commerce and finance. As such, they are greatly impacted by each others' national activities and economic well-being.

Key Takeaways

• Internationalization describes designing a product in a way that it may be readily consumed across multiple countries.
• This process is used by companies looking to expand their global footprint beyond their own domestic market understanding consumers abroad may have different tastes or habits.
• Internationalization often requires modifying products to conform to the technical or cultural needs of a given country, such as creating plugs suitable for different types of electrical outlets.

Understanding Internationalization

When a company seeks to sell its goods abroad, it may find that there are several roadblocks in the way. Some may be technical barriers that need to be overcome; for instance, different voltages of household electricity or different plug shapes found around the world. These may be remedied via technological adaptations. Other barriers may be cultural, for instance in India many Hindus do not eat beef. This means that to internationalize, Mcdonald's must focus on chicken, fish, and other non-beef menu items that better conform to local custom and culture. Being able to flexibly adapt lends itself to greater internationalization.

There are many incentives that might inspire companies to strive for internationalization. For example, in the United States companies that pay exorbitant overhead costs can shave expenses by selling products in nations with relatively weaker currencies or in countries that have lower costs of living. Companies may also benefit from internationalization by reducing the cost of business via reduced labor costs that are outsourced to foreign markets where goods will be sold. Internationalization can thus lead to product internationalization since products sold by multinational companies are now often used in several different countries.

As of 2019, over 50% of the revenue earned by companies in the U.S S&P 500 Index came from sources outside of the United States. This is a clear sign that large U.S. companies are conducting a large amount of their business internationally.

Companies looking to step up internationalization efforts should be cognizant of potential trade barriers that may restrict their prospects for overseas commerce.

Examples of Internationalization

When a company produces goods for a wide range of customers in different countries, the products that are internationalized often must be localized to fit the needs of a given country's consumers .

For example, an internationalized software program must be localized so that it displays the date convention as "November 14" in the United States, but as "14 November" in England. Likewise, units in America are measured in feet or miles, while in Europe and Canada they use the metric system. This means that cars sold across these markets must be able to quickly interchange between miles and kilometers.

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Internationalization and Globalization, Essay Example

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The antiglobalist position holds that globalism is inherently destructive. Among the primary antiglobalist arguments are the following: that globalism keeps the poor in an impoverished state to the benefit of the wealthy; that globalism is exploitative of natural resources and harmful to the environment; and that global financial institutions and trade organizations exist largely to serve the needs of large corporations while locking developing nations in cycles of debt and even economic ruin. Polls in several developed nations –ostensibly those that benefit the most from globalization- demonstrate strong antiglobalist sentiment among a significant percentage of the populations of those countries. Although the continuing growth of globalism appears in many ways to be inevitable, there is no question that the globalist agenda has hit many parts of the developing world particularly hard. Even the United States, one of the world’s wealthiest nations, appears to be recovering very slowly from the global economic downturn of 2008 (a downturn which was driven largely by issues related to globalism). As the CEO of a domestic corporation I would likely view it as my responsibility to shareholders to expand internationally. Such expansion comes with ethical considerations; among these are the need to understand the ethical frameworks of doing business in other countries, and the impact that international expansion will have on the company’s domestic stakeholders.

At first glance it may seem as if the primary stakeholders in this scenario are the workers and supervisors at the facility. Further consideration reveals that, in the broadest sense, the public as a whole are also stakeholders, with the government serving as the organization responsible for ensuring the safety of the workers. The rules governing the use of sniffers in confined spaces were established by government regulatory and oversight agencies, not by the company. The stakes for the p0ublic are the safety of the public (specifically the members of the public that work for the company). The stakes for the supervisors include balancing the demands of regulation with the demands of production, while the stakes for the company are similarly oppositional. This scenario highlights the inherently adversarial relationship between businesses and government in a capitalist society. It is difficult for me to know or say how I would respond under similar circumstances. The individual who was in this situation apparently did go along with the demands to sign off on the paperwork, knowing that the rules were being broken. According to the details of the case, “sometimes the supervisors and the workers forgot that we are working in a confined space and thus forgot the permit and the sniffer,” and the supervisors asked workers to initial the paperwork after the fact. This shows how difficult it can be for workers to balance the demands and pressures of supervisors against the demands of safety regulations, which can be even more difficult in a tough economy when jobs are scarce. Standing up to a supervisor may mean losing one’s job. I would like to think I would do the right thing, but sometimes that is easier said than done.

History has proven that some measure of government regulation is necessary in a capitalist economic and social system. Businesses are ultimately concerned with profitability; while some businesses operate with a sense of organizational social conscience, others will exploit any opportunity to get an edge over their competitors. Unfettered capitalism has led to serious abuses, and governments have been forced to take steps to rectify those situations. As the textbook describes it, this balance between business and government is not static, but operates like a pendulum, swinging between periods of looser and tighter regulation. While there is a role for governments in regulating business, it is also important to ensure that government does not strangle business. Finding the proper balance is an ongoing and never-ending process.

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