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What are Localization, Internationalization, and Globalization?
Life and Style Daily
May 11, 2020
2 min

The biggest business corporations in the world have one thing in common --- they operate across several countries. Expanding company operations to multiple nations gives them the advantage of having a broader market to gain profit. That explains why brands like Unilever, Facebook, and Microsoft have set up offices and company properties in hundreds of locations worldwide.

In business expansions, three critical concepts that businesses should consider are localization, internationalization, and globalization. These concepts provide a fundamental understanding of how a certain country would potentially react to a new product or service coming from foreign businesses. Hence, a company seeking to expand its market overseas must fully understand localization, internationalization, and globalization.


McDonald’s is indubitably one of the biggest fast-food chains globally. They are well-loved by people for their specialty, the Big Mac. Despite the dominantly meat-based menu of McDonald’s, it was still able to penetrate the Indian market, which is mostly vegetarian due to their religion. How did McDonald’s do it?

Simple. They modified their menu to fit the preferences of the people in India.

This is what localization is about. It is the process of changing some aspects of your business to fit the context of the consumer. Before releasing products or services to an international audience, companies should undertake detailed research about the territory’s culture and traditions where they want to sell the product or service.


While localization seeks to adapt a product or service to a particular country, internationalization is the process of making products or services that can be sold to a diverse range of consumers from different countries. The products should ideally be versatile so that they are suitable for a general audience.

One company that has maximized this concept is Facebook. Across states, the interface of this social networking site is identical, but people use Facebook anyway because it appeals to the general public. This versatility has gained Facebook billions of users worldwide, making it a household name.


The concept of globalization revolves around the idea of economic and cultural transactions that surpass geographic borders. Globalization enables people from one country to transact with other nationalities with more convenience.

For instance, the North American Free Trade Agreement (NAFTA) is a birthchild of globalization. It made trading goods more accessible for the US, Canada, and Mexico by removing tariffs and other importation restrictions. The European Union, through globalization, is another free-trade area, benefiting its 27 member states.

It is integral for companies to embrace globalization and maximize its benefits. However, doing this requires a thorough understanding of the cultures and socioeconomic backgrounds of different countries.

The Need for Understanding

One essential aspect to consider is the language barrier for businesses expanding their operations to an international scale. Understanding countries in trade is of paramount importance, so certified translators and interpreters should be sought.

Businesses can form their own team of translators, but this would incur significant expenses. A more cost-effective option would be to hire global language services offering certified translation services. This move will equip businesses with the right tools to help them expand operations overseas.

Interested in building your own business brand? Read ”The Basics of Building Your Business Brand in 2021” to learn more.

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