How Globalization and FinTech Open The World to Travelers

Table of Contents

• What Is Globalization?
• FinTech and Globalization
• Globalization and Travel
• How to Travel Respectfully in the Era of Globalization

It might seem cliché to say "it's a small world", but globalization is making this phrase less of a cliché and more of an everyday reality. At the same time, financial technology — "fintech" for short — is making waves all over the globe as it changes the way people send and receive payments. Together, globalization and fintech are literally changing the world.

What Is Globalization?

Globalization is the process of nations becoming interconnected through commerce and trade. According to The Street, this economic interconnection encompasses "trade, investment, labor, banking, and the movement of people, goods and services". For example, an American company may decide to manufacture goods in countries such as China, Taiwan, and Vietnam. The materials often come from across East Asia and the workers are from the country of manufacture, while the finished products are exported to America and other Western countries.

Here are some globalization statistics to consider:

• From 1950 to 2014, the value of global exports increased by over 2,800 percent
• In 2017, the U.S. exported $2.21 trillion worth of goods and services
• About 25 percent of global production is exported today

The paradigm of globalization is not without its detractors and critics, but many view it as an unstoppable force. Globalization is allowing countries, industries, industry titans, and innovators to make tremendous gains. Advances in fintech are one of the contributing factors in the rise of globalization.

FinTech and Globalization

Broadly speaking, fintech falls under the umbrella of electronic payments. However, advances in fintech go well beyond ATMs and wire transfers. Today the internet facilitates apps that allow you to can make nearly instant payments to anyone overseas. How exactly does fintech facilitate globalization?

Let's look at a simple example. Because of the competitive state of global business, many companies are prepared to hire skilled workers from anywhere in the world. When those workers get a job that requires them to move to a different country, they often need to make cross-border remittances to their family back home.

A remittance is a transfer of money from one place to another, usually taking the form of a payment. Before fintech made it easy to send money, migrant workers were at the mercy of banks and money transfer operators, who usually took a portion out of the remittance as a fee. Now, migrants can monitor exchange rates and send their money with a fintech app for a fraction of the price they used to have to pay for the exchange.

This, in turn, encourages global commerce, because migrant workers can earn great money abroad and help their families out back home without incurring exorbitant fees. Fintech is becoming so reliable and easy to use on the global stage that the former CEO of Barclays and founder of 10x Banking, Antony Jenkins, believes that fintech and cryptocurrency will completely reshape the banking and investment industry.

Globalization and Travel

The travel industry benefits a great deal from globalization because people fly across borders to conduct business every day. Airlines, hotels, restaurants, credit card companies and a host of other businesses — including small, local businesses — cater to the needs of business travelers. In turn, business travelers help global and local businesses thrive. It's also easy for them to take care of money matters back home thanks to fintech.

Business travelers create a consistent demand for flights. Vacationers and other travelers can avail themselves of the myriad flights that would not be scheduled if it weren't for global business travelers.

Furthermore, American travelers can find some of their favorite go-to establishments conducting business around the globe. McDonald's, Starbucks, and Subway are a few of the brands you can find in many places all over the world. Sometimes you need something comforting and familiar after a long flight.

Furthermore, it can't be understated how easy it is now for freelancing digital nomads and all manner of travelers to make and receive payments wherever they go. With fintech, a quick, secure, and inexpensive money transfer to or from your home country requires nothing but a smartphone and the click of a button.

How to Travel Respectfully in the Era of Globalization

The demand that business travelers create for flights has created a jet-setting world where you can fly almost anywhere, anytime. However, travelers can potentially trample over the local cultures and customs if they fail to travel mindfully. It's important to remember that each country, region and city still has its own unique cultural identity.

In Japan, for example, the national culture emphasizes respect. Japanese etiquette includes customs such as bowing when you meet somebody, removing your shoes upon entering a traditional inn (a ryokan), and placing your money on a tray instead of handing it directly to the cashier.

Research is the key to traveling respectfully. Commisceo Global offers free guides to cultures, customs, and etiquette for over 80 countries. The guides, which aren't in-depth but provide a good overview, include information on business practices. If you're taking an extended trip to one location, do some in-depth research before you go.

People will quickly sour to globalization's impacts if travelers pay no heed to local cultures and customs. The inverse is true as well. People are more likely to welcome globalization, business travelers, and travelers of all stripes when travelers are respectful. Even if a trip is last minute and you don't have time for a ton of research, even indicating your intent to respect local culture by asking questions and making an honest effort will go a long way wherever you go.

Thanks to fintech and a world where business never stops, globalization is a reality that can't be reversed. Travelers have the best of both worlds: you can circle the globe and do business anywhere, and you can enjoy the intimacy of local cultures and establishments.