Why Competing in a Global Economy as a Business is Not Easy

Why Competing in a Global Economy as a Business is Not Easy

Why Competing in a Global Economy as a Business is Not Easy


We live in a world that is more connected more than ever. Especially in the field of business where money is the common vernacular, no distance is simply too far nor is there a cultural barrier to any enterprise willing to make some bucks from customers.

To become an enterprising unit, therefore, is to compete in a larger stage that is not always overtly seen from the outset. Whether directly or indirectly, businesses compete with one another in order to survive a world where the fittest survive and the losers perish.

But, although nuanced, there are also other elements which make competing in the global stage a more difficult ordeal than just facing competitions.

Language and Cultures

With the internet as the common pipeline, establishing a business globally has become easier than ever. But, while the internet may itself adhere to a kind of universal culture, this does not necessarily apply across the board.

For instance, in dealing with customers from a culture you share values with may be easy enough due to familiarity. But dealing with different cultures from another country or continent may altogether give off a unique experience.

Simply put, if you are close-minded about other people’s beliefs and way of thinking, the chance is good that you might encounter friction that may go against yours. To learn the nuances between cultures, including language, of your target market is, therefore, a necessary aspect of going global with business.


When you speak of dealing business with countries which are considered sovereign, chances are you’re subjected to a plethora of rules, regulations, and taxations that are inherent to that country.

The magnitude of these guidelines you ought to follow also increases significantly when you refer to various countries which themselves have a unique set of rules and regulations you are expected to adhere and follow.

You can, therefore, imagine the challenges of expanding a business empire across different lands and thus what makes well-established conglomerates epitomes of worldly success.

Communication and Technology

Having multiple branches of a single business as spread across borders require a centralized form of communication in order to work effectively and efficiently as a single collective unit. Especially when each branch does not necessarily work independently from others, the need to consolidate bits and pieces of information from business is of utmost imperative.

But establishing this means is not always easy even in today’s advanced technology. This is especially truer among poor countries which requires a more robust communication infrastructure in place.

Environmental Consideration

Unless you are in a business which does no harm to the environment, taking concerns for the environment should be least of your problem as a business unit.

But if yours is one which has direct repercussions to the green world, expect to experience opposition from environmental rights group. Typically, for many countries, the issue would revolve around the issue of energy use, green packaging, and recycling.

Related Stories

Please follow and like us:


  1. Vivien Elaine A. Gavieta

    Competing on a global scale means staying on your toes. With increased and intensified global competition, the challenge on global entrepreneurs is on how to differentiate their products and services. Before a world-known company have found a good standing in the international business realm, it surely has started from rags, committed several trial and errors, have gone a long way before finally conquering the diversified world. Even up to this date, competition remains to be uneasy as we live in an ever fast-changing world with high innovation demands.

    Many times have we been surprised by the fact that most of the top companies emerging in the global arena are actually managed and owned by a Filipino. But with the whole world as your competitors, there are numerous concerns filipino business people address in competing globally.

    One Filipino businessman for example, who is leading the Association of Filipino Franchisers Inc. (AFFI), the country’s leading franchise group in the person of Armando Bartolome, who has helped Filipino franchise brands expand operations overseas, shared that “Operating a franchise overseas comes with a unique set of challenges. These include not only different laws, languages, and cultural differences in how business is conducted but most importantly, its also finding a franchisee to partner with,”.

    Choosing your partner abroad is crucial for he/she shall help in translating the concept and your brand into an acceptable and profitable commodity in his/her area scope. Its either your partner can make it or break it. Different markets have different needs of course, so our relationships with our partners can be recipe for success or disaster. Selection of partners with the right qualifications might be rigid and be stressful as it can be, but it can make a major difference to building a strong franchise.

    In this regard, the government, being a powerful law implementing body, plays a huge role in the upliftment of local business in the Global market. Our local governments must increase its diversification efforts through collaboration with the national agencies such as Department of Agriculture (DA), Department of Trade and Industry (DTI) and Department of Tourism (DOT), as they are key managers in the improvement of what our nation has to offer.

    The government can also be an instrument in boosting participation of our local producers to international trade exhibitions through allocation of assistance and support to deserving local producers. It will not only open opportunities to transact with the world’s biggest buyers, but it is of big help in enhancing linkages and establishment of stronger partnerships. The Department of Tourism can also have an influence to airing of videos in the social media, to further promote Filipino food products and cuisines.

    Competing in a global economy may not be as easy as it may seem, but Filipino’s world-class talents, there is no barrier they can not hurdle to be effective players in the local and global business.

  2. Ma. Carmela Joy D. Alegada

    Since our business requires you to export globally a supervisory oversight is needed. In order for a busines to progress well it needs someone who will look after your business and to give you insight and updates how your business operates in your target market country. Our government can be of help by strengthening our ties with other counries, mus take part in unions like the WTO and ASEAN.

  3. Geiczar Ross D. Real

    There are really a lot of factors to be mentioned that a lot of business people should do when competing globally in the market. One thing that the mindset of a Filipino businessmen is to eliminate the thought of they want to be like everyone else in the market. Uniqueness will make you more succeed in the international arena. Also, government has to help these businessmen to achieve those goals especially those local businesses in terms of their production and tariffs imposed.

  4. Jocelyn D. Palomo

    Going global is never easy especially for Filipino Business People where some concerns hinder the success of their business internationally. While engaging your business in a broader sense may seem to open new opportunities and chances there are obstacles which comes along with it that needs to be dealt with and the ones who have succeeded will be the one who will be have the pleasure of benefiting from it.

    Working with people across the countries with different time zones as you is such a challenge and a difficulty. Imagine when you need to reach your contact in other countries which are on 12-hour time difference as you are. It is either you here in the Philippines will be the one to adjust your time for you to work at the same time. That’s where the problem comes in because you can’t be able to work simultaneously and efficiently since you will have to wait for the availability of either of your contacts in and out of the country.

    A currency rate affects the Filipino businesses across the country because of the inconsistent equivalent value of Philippine peso compared to other currencies. This will affect the cost of expenses while and during the process of doing the business as well as the amount of revenue you will gain from that business.

    Speaking of infrastructure development, the Philippines falls way behind especially with those developed countries. Just take for example our transport system of conveying goods from one place to another where it is always late or delayed affecting our products. Airports as well as seaports which are overcrowding now of excessive number transactions everyday is one part of limitations to business.

    In order to help the local business, our government may provide :
    To be able to help the local business, the government can maybe provide loan reinforcement especially to those start-ups and even established companies locally who wants to expand and venture globally. Business loans with at least low interest rates will help provide and improve the locally established business its capital to perform and compete well globally.

    Getting finished goods to the market and/or plants quickly means the business is doing better since raw materials moves faster and efficiently. When government helps to improve infrastructure such as maintaining roads, seaports, airports, and bridges, it follows at some point that business will flourish because it will have less tendencies of delays.

    Education and training plays a very important role in the success of businesses. It pays a lot when businesses have access to government training and seminar programs where they can gain important inputs to help strategized their business plans. Since government research and development are working to develop new techniques and technologies which will help and benefit the business industry, they usually ties up with educational institutions to get free work training for business’ owners and employees.

  5. Joshua Japitana

    Competing globally is never easy. Below is an example of a challenge and a suggested action plan to our government so it can help our local people in making it sucessful in a global scale or perspective.

    1. Enough Capitalization- Turning your product to be a globally competitive output will require higher standards to meet. Most of the times, higher standard would mean higher over head cost to ensure quality of service.

    Suggested Recommendation: Government should allow our potential exporters to loan in a low interest rates. Making tge documents needed to prucure the loan should also be made easier to ensure that they can deliver the output in a timely manner.

    We have to remember that it is the obligation of the government to help its people however, it is our moral obligation to ensure that we are soing our very best to help ourselves.

  6. Ma. Lourdes B. Navarosa

    With the above mentioned issues, Filipino Entrepreneurs or Business people faces dilemma with the other business people who have positioned themselves in the global market. Citing specific experience of a Filipino Tycon – Ton Tan Caktiong – founder of Jollibee Foods Corporation (1975), it also faces legalities issues and environmental considerations as they have expanded their branches in the United in the States. Merger and Acquisitions has been tough for the corporation as reported by the Asian Review. Major competitors were mentioned but Jollibee seemed to position itself in the market by its strong brand, and in principle, Jollibee believed that if “you cannot beat them join them”. In order for Jollibee to be truly a global player, it must not only please the taste buds of the consumers, Jollibee has to really be consistently maintain the quality of its food, perform and abide with the legal requirements for its staffing.

    The Philippine government must see to it that the international standards or procedures in supporting local business people will be properly handled and these people will not be given a hard time in so many red tapes and others in processing the expansion of their businesses globally.

  7. Gekka Kaye Eusebio

    From the title of the article it is really true that competing in a global economy as a
    Business is that easy. Many Filipino businessmen have concerns especially trading globally like the
    Legalities of other countries. For their laws and culture are different from what we have. So
    businessmen should know the pros and cons and the culture of the country to suit the needs or
    product selection of the certain country. Also the Environmental Consideration on the packaging of the products or if it is cruelty free. On our last Class with Doc Padilla she said that there is this famous Veloria’s squid rings in old Sagay city. They were helped by the government with regards to their product development, DFA approval and packaging with no cost all they have to do is to pass
    reports. On my own opinion, the government should focus more on locally products for more exports to be made. In addition, the government should give seminars for the awareness of the business when it comes to packaging and the laws of other countries and helping SME’s will greatly help the country’s economy.

  8. Mirriam Dickinson

    When competing globally, the first thing that comes to my mind is – you have to be unique, you have to be something special or different that people will go for your business not just for a season but something like a necessity to them. This what makes your business go global without the stress of even competing. If you want to be known in the local and international, you have to be unique and always take the leap. Other concerns I can add on is who is your target market and you should do a market research and find out where your products/services in demand. Also hire a good lawyer. This always comes into my mind especially when it comes to legalities. A good lawyer can set up terms and conditions on how to’s and dos and dont’s in venturing globally. Since most of the time our government do not support Filipino Business People unless they do not have their part of interest. Government should give full support on Filipino local businesses in ways that they are motivated because of the opportunities in international. They should give attention to those making the country be known globally and gives pride to its country instead of fighting and having war and hatred in one another. How would they’d be able to give attention to this when everything you see and hear is hatred and war. To be honest, if you do not do the work on your own. You will never be success in what you are doing. So take the leap and take the risk.

  9. Gene Claude Mapa

    There are a lot of factors why is it difficult for companies to compete globally. One thing to consider is the cost calculation and global pricing strategy. Setting the price of your product entails an additional strategy for businesses. Price should always be competitive but it must still give profit. This is one of the major concerns since you have also to set a benchmark in order to remain competitive with other local direct exporters. Another challenge in global competition is the structure of your organization and your team location. Some will consider this challenge as costly to implement and difficult because of the differences in culture of your target markets. Political instability and uncertainty also brought a problem in international competition. Unstable policies and corrupt practices will lead to different types of circumstances in the emerging markets. Changes in government will also change the country’s regulations.
    The government should improve the labor productivity by spending in education and training, encourage business start-ups and promote a flexible labor market. Deregulation of barriers to entry and reducing of monopoly power must also be done in order improve dynamic efficiency in the international market.

  10. Joe Salvador Mercado

    2. Apart from the issues presented in the article, what do you think are other concerns which Filipino Business People has to address when competing globally? What should the government do to help local businesses?
    One of the factors that makes international business hard for Filipino business people is the transportation of goods. Transportation of goods is not easy since you would need to transport the goods from one port to another until you reach the destination. There are several factors that can affect the efficiency of transport, we have amount of time of transport, this is important especially if your products are perishable goods.
    Weather is uncontrollable, Philippines is somehow the testing grounds of storms and typhoons on how strong they are, considering this situation, it is not easy to transport goods all year round.
    There is a cheaper way to transport goods that is by using roll-on roll-off ferry service (ro-ro). There has been a significant development in the roll-on roll-off ferry service (ro-ro) as they do inter-island shipping service within the past couple of years, more island have been linked.
    The government can continue to develop new ideas in the continues development of our water transport, this way, exchange of goods will be more efficient may it be locally and internationally.

  11. The article has presented issues in engaging as a business in a global economy such as language and cultures, legalities, communication and technology, and environmental consideration. For me, another concern which Filipino Business People has to address when competing globally is the issue of financial constraints in production towards competitive target markets where similar products are being offered. A manufacturer that produces a product in a lower cost has an optimum advantage. Lower costs means better pricing in a way that such manufacturer can play with the price of its product in the target market. For developed countries that has advanced technology that can deliver a product at a lower production cost than a product produced by a Filipino Business, such shall create a threat to the standing of the Filipino Business in the global market. When a Filipino Business collapses, it has effect to the Philippine economy as probable foreign valuable currency earnings shall decrease. The government shall take precautionary actions to this threat through providing financial assistance to Filipino Businesses that engage to global economy. It can provide assistance by conducting free training to local producers for efficient and effective production and financial assistance through socialized credit among accredited local businesses which shall be used in acquisition of advanced technology that shall also give an advantage in lower production cost than usual.

  12. Pearl Joy Ortiz

    I think what concerns Filipino business people is how to maintain a competitive advantage in the global market to generate profit. With the fast-growing industry and productivity all over the world, global competition makes it tougher.
    Inflation also affects Filipino business because if the prices of the commodities increase so does your raw materials and wages for production increases. High prices of products and services will make you uncompetitive in the global market.
    The government should establish programs to support local businesses to increase profit and to solve existing problems. Promote local resources to help develop communities. The continuing challenge for the Department of Agriculture is to focus on increasing the productivity of farmers and lowering the cost of production. And high production cost could not compete with our Philippine counterpart. This will not only produce sufficient supply but we can export. Support sectors with facilities and machinery needed to contribute production.
    Expand platform investment and provide programs like low-interest loans to producers to sustain production cost. Collaborate with schools and private sectors to enhance learning. Invest in infrastructure for internet access for better educational opportunities.

  13. Nadia Diana S. Casas

    Apart from the issues stated in the article (the language and cultures,legalities, communication and technology and environmental consideration)the other factor that causes difficulty for competing to global economy is that, are the other traders or the competitors. Knowing both sides strengths and weaknesses then you might have this courage to take action knowing what strategy to make and to overcome threats of failing. Filipinos should be more eager to improve their products, learn alternative courses of action and willingness to take risks. Your one of the global traders that you have to play in it.
    With regards to this problem the government should support its local products for competing globally by providing assistance in resources, manpower and financial by finding countries to market products to sell or services to offer. It does have know how for contributing help to traders knowing that they have bunches of connections to other alliances or other countries. Through this, Filipinos will have the idea what to do for the particular country where they are planning to market, its diversity, the culture, legalities,communication and technology, and its country’s environmental considerations.

  14. Cybel Valaquio

    Filipino business people may also encounter these concerns in competing globally: In choosing the right products or goods to sell in other countries. What is fitted that considers their cultures, profitable and in demand to the target market to penetrate. Another is the capital for establishing a business that go for global. Hiring employees or staff is also one of the concern in doing a business because you need people who are highly skilled for that particular product to be market, to help you in the operations, process and to other tasks related to the business. In order for local businesses to have its success here in the country and to the global, the government can offer a financial assistance like loan programs that has low interest rates, they can also provide free education and training programs for entrepreneurs who wants to compete in the business global, fast processing of the licenses and permits but still in the legal way and improve technology and telecommunications systems for effective communication, good customer service and productivity.

  15. Jonathan Reeve B. Miranda

    Competing on a small scope of area is already hard how much more in a global scale. Other concerns which Filipino businessman has to address is having less connection to other countries. One way to achieve a successful business is to have a lot of connections all over the world because they will be the one who help for expanding the business and act as a middle man between you and your possible customers. Another is, conflict between countries. It is difficult to export products from the Philippines if the country of destination has an issue in the Philippine Government and theirs. The government should take action about this matter because it really affect the businesses’ sales when in fact, it has nothing to do with whatever issues the countries have. Lastly, the safety of the products from transporting it to other countries. It is important to choose the right and trustworthy shipping company when exporting your products. Some employees of shipping companies do not handle the products with care. They just throw it and sometimes they break it and when the product reaches the customers’ address, the products are already ruined and useless. The government should make or formulate laws or rules for owners, stakeholders and employees in proper handling of products.

  16. Jackie Lou A. Lasola

    First, safety business location. A series of terrorist attacked was being noted all over the world. Consider the safe environment in the planning stage.
    Second, identification and compliance of the legal requirements. It can help you to avoid problems and delays when the business operation have started.
    Third, conduct audit to the prospect business partners and suppliers. This is to help you to evaluate their management system and be able to know if the business is legit.
    In addition, Government agencies should assist Filipino business people by providing assistance needed in this areas.

  17. Jholina B. Indac

    I think education is the key in competing globally.To prepared ourselves to a world standing and competent in every different field of industry. The government must focus and invest education rather than infrastructures for my own opinion.Filipino , ideally must be more fluent and knowledgeable in speaking English as one of the most important language in communicating around the world.

    Local government need to improve stability of economics by helping farmers gaining capital , improve production and advance the technology that is being used.Furthermore, helping other business to grow and develop, to seek more opportunities not just in the country but also across the world.

Leave a Comment

Your email address will not be published. Required fields are marked *


This site uses Akismet to reduce spam. Learn how your comment data is processed.