Being and internationally recognized company, Speyer needs to know how the address the risks related to their international business. What started out as a local real estate investment firm in New York City has monopolized the high-end commercial and residential development market in the United States. Gradually, they are doing the same in different parts of the world such as in Rio de Janeiro, China, and Singapore. The company has a variety of factors to consider when it comes to the disadvantages of globalization:
- Political risk and nationalization. Doing business in other countries means that businesses have to be familiar with the laws, work ethic, and cultures of that country so they do not cause any trouble. That remains especially true when developing real estate and purchasing real estate in other countries like Speyer does.
- Longer customer response time. With time zones differences and distance, it may take longer for businesses doing business in other countries to respond to issues. As a result, Speyer usually keeps a communications teaming other countries to respond to issues immediately on and off the development site. This makes for better long distance customer service.
- High turnover due to offshoring. Because offshoring usually occurs in less fortunate countries, there is often a high turnover of employees. Unfortunately, Speyer cannot afford to retrain individuals every time one leaves, especially when they are on the other side of the world. Therefore, they are very selective in choosing local employees.
- As a result, foreign employees need more training. Due to the fact that other countries processes are different than that of North America’s, Speyer makes sure that their employees are well trained in similar processes so that the training for the intended project is less.
For more information about how Speyer addressed the advantages and disadvantages of globalization, contact them using the link provided above. The company is the most renowned international investment firm so they are the perfect ones to ask about the effects of globalization.