Intenationalization vs Globalization: What's the Difference?

If you’re thinking about expanding your company’s reach to worldwide markets, you probably encountered the terms internationalization and globalization. But what is the difference between them?

When businesses want to expand their reach, they have to plan their globalization, define strategies, and adapt their content to infiltrate foreign markets effectively. And this takes a lot of effort, organization, and usually, collaboration with translation and localization services. Here at MotaWord, we have plenty of experience with internationalization and globalization.

When a company is implementing a successful internationalization strategy, one of its biggest obstacles is not having its website localized. Localization is another term usually used along with globalization and internationalization.

In this article, we’ll skip the macroeconomic side of these terms and concentrate on what they mean for companies. We’ll also go over how language plays an integral role in the globalization and internationalization processes. Finally, we will tell you all the differences between Internationalization vs Globalization. Let’s get right into it!

Free Website Translation Checklist

Start your Website Localization Journey Today!

GET THE FILE

What is Globalization?

Globalization, also known as “g11n”, is the process of operating a business on a global scale. Globalization has expanded thanks to advancements in transportation, the internet, and communication technologies that allow companies and countries to purchase goods and services from across the world.

In the technology and data sectors, globalization is defined as preparing products and services in a way that will resonate with a global audience. It is about creating a framework of expansion on which you can build and scale efficiently. For instance, if you want to break into the Arabic market, your content should be written in Arabic and from right to left. Globalization is a broad goal that aims to adapt a product to a global audience. Everyone working on the product, including creators, designers, and developers, should be involved in this globalization process.

There are many pros and cons to globalization, but the greatest one is that an effective globalization strategy will help you break into new markets, which will inevitably increase traffic, customers, and revenue. Let’s look at some examples of globalization:

• Amazon and eBay make it easy to buy products from individuals and businesses on the other side of the planet. Product descriptions, categories, and reviews are localized to make consumers feel at home when navigating the sites.

• Large restaurant chains like McDonald’s successfully operate in dozens of countries. They make changes in their offers depending on the differences in the country’s cuisine. This includes removing and adding products. If McDonald’s had offered McBacon in a Muslim country, almost no one would have stepped in, right?

• Netflix operates in more than 190 countries. They undertook a globalization exercise to offer customized content for almost every market they operate in.

• YouTube, needless to say, actively operates in any country that has an internet connection. Their ads and recommendations are highly customized for each individual. The country's trends are taken into account for sure.

What is Internationalization?

Internationalization is an early step in a company’s globalization mission and is the process of making product content adaptable so that it can be easily localized in multiple languages. A product that can resonate with foreign markets without the need for a total redesign is considered internationalized.

Internationalization is often known as i18n, where 18 is the number of letters between i and n in the English word “internationalization”. Developing a well-rounded internationalization strategy is crucial to expanding to new markets. It also plays a significant role in the groundwork of a localization process. If you want to learn more about internationalization and localization, check out our latest blog post on localization vs internationalization, where we dig deeper into these two concepts.

Internationalization can include, but is not limited to:

• Creating space in user interfaces

• Making graphics with examples for documents

• Using tools that can give support to international character sets

• Avoiding hard-coding the text in buttons.

In short, internationalization is the act of preparing your concept, your product, or your service and tweaking every necessary item in your content to enter a new market. The more adaptable your content is, the better your chances are of success in a new market.

Internationalization can be helpful on its own, even if you don’t localize later. But, combining the two processes ensures content both resonates and scales in multiple regions. It is nowadays seen as a necessary step to take before going international. Locally successful concepts, products, and services often fail when they try to export without considering the local market.

Is internationalization expensive?

Now, you might think that only small businesses lacking the necessary resources to internationalize will forgo such an integral expansion step. Well, that’s not entirely true. The most famous example is Wal-Mart’s epic failure in Germany, which cost the company 3 billion dollars. This happened because the retail giant ignored cultural differences, customer habits, and local labor laws while entering a new market. And this is nothing but fatal to any business, regardless of budget.

What are some of the benefits that internationalization can give you?

There are several benefits to internationalization. Some companies have discovered that some markets are more beneficial than their country of origin, and they eventually end up having an even bigger presence and share of the market in a foreign country.

• Create new revenue streams: Expanding into international markets helps overcome domestic saturation and opens the door to new customers and increased sales.

• Reach more people with your solutions: If your products improve lives, internationalization helps you extend that benefit to a broader audience.

• Encourage innovation and growth: Competing globally often drives improvements in quality, design, and technology, which can also positively affect your domestic market.

• Access international talent: Hiring from other countries brings new perspectives, skills, and work practices to your organization.

• Gain cultural and market insights: Researching new markets helps you better understand local needs and customs, which improves customer relations and product adaptation.

• Explore foreign investment opportunities: Some countries offer incentives exclusively to foreign businesses, opening doors to unique partnerships and agreements.

• Strengthen brand reputation: Serving international clients enhances your credibility and visibility, even boosting trust among domestic customers.

• Reduce market risk through diversification: International presence balances your business during economic downturns in any one region.

• Build long-term advantages: Despite the challenges, internationalization delivers sustainable growth, especially when supported by a strong strategy and reliable partners.

And these are just some of the main reasons why internationalization can be highly beneficial for your business.

What is the Difference Between Globalization and Internationalization?

Although often used interchangeably, globalization and internationalization are distinct concepts. The simplest way to separate them is this:

• Internationalization is a step in the globalization process.
• Globalization is the result of multiple internationalization efforts happening worldwide.

Internationalization involves adapting a product or service so it can be easily localized for different languages and cultures. It includes determining target markets and preparing your offering for entry into those regions. It respects borders, cultures, and localized customer needs.

Globalization, in contrast, treats the world as a single, interconnected market where cultural and economic differences are minimized. It reflects broader policies and systems that aim to unify global trade and investment.

Internationalization vs Globalization: Key Differences

Perspective:

• Globalization sees one global market.
• Internationalization acknowledges multiple markets and cultures.

Focus:

• Globalization is driven by economic policy and global infrastructure.
• Internationalization is led by individuals and companies adapting offerings to new markets.

Influencing Factors:

• Globalization depends on logistics, networks, and trade liberalization.
• Internationalization is shaped by culture, language, and local preferences.

Examples:

• Globalization: trade agreements, visa liberalization, investment reforms.
• Internationalization: product localization, setting up overseas branches, and multilingual content.

Here’s a table to give you a more visual example of internationalization vs globalization.

Institutions Involved

• Globalization: International Monetary Fund (IMF), World Bank, World Trade Organization (WTO)
• Internationalization: European Union (EU), Asia-Pacific Economic Cooperation (APEC), North American Free Trade Agreement (NAFTA)

In short, globalization is the structure, and internationalization is the process that feeds into it.

Internationalization is a Step Towards Globalization

If you’re thinking about taking your company global, having a solid strategy isn’t optional—it’s essential. Today’s international business environment is more competitive than ever, and the first step in going global is often internationalization.

That means getting your products, services, website, and content ready for new markets. This could involve anything from adjusting your product design to meet local expectations to making sure your website works seamlessly in another language. Both globalization and internationalization take careful planning and experience.

Not sure where to start? That’s where we come in. MotaWord helps businesses like yours prepare for global success. Our expert team works with internationalization every day, localizing content, adapting websites, and guiding businesses through the process from start to finish. We can also help you internationalize your products and handle the more technical translations, regardless of the industry.

Let MotaWord be your partner in going global—smoothly, smartly, and successfully.