Globalization is one of the most significant economic phenomena

Essay 1
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Globalization is one of the most significant economic phenomena that have been witnessed in the recent past. International economies are not isolated anymore and the effect on any one of the economies also has a prominent impact on another economy and this relationship between economies has been established due to the recent increase in globalization. Organizations have been expanding their operations all around the globe and the international economy has also benefitted from this increasing wave of globalization. It can be easily observed that this increase in globalization has been triggered with the development of communication technology.
GLOBALIZATION AND TECHNOLOGY
The term ‘globalization` as a whole refers to the increasing relationships between people, culture and economic activity all around the globe. However, in the ongoing context, it refers to the distribution of services and goods internationally. This phenomenon initiated when the barriers to international trade were reduced and the tariffs that were applied on exports and the quotas that were applied on imports were relaxed. Globalization is considered to be a positive phenomenon because due to globalization, the economy of a number of developing countries has flourished. Globalization is responsible for the increase in economic activity in the developing countries due to comparative advantage held by the developing countries (Dicken 2003). Multinational organizations utilize the labor in developing countries and as a result, the level of employment in the developing countries increases. Apart from the economic globalization, there are phenomena like political globalization and cultural globalization which have also increased with the development of technology.
History of Globalization
Some economists are of the view that globalization existed long before the advent of technology but it is also true that the extent of globalization was very restricted before technology. Initially, the trade between two countries depended solely upon the relationships between those countries and the infrastructure that made it possible for the countries to execute any trade activities. The political factors were the sole determinants of the extent of globalization before the advent of technology (Stiglitz 2002). End users did not have any role to play in international trade and the market factors like demand and supply did not have any significant impact on globalization. Whether any products would be exported or imported was for the government of the country to decide. The phenomenon of globalization is much wider than the trade relationships between a few countries and the actual increase in globalization started from 1970s which is also the era when the technology was being developed at a very rapid pace (Lechner & Boli 2003).
Impact of Technology on Globalization
Information technology is one of the most important driving factors in the current process of globalization. Change in technology can be regarded as the most significant change factor because it has impacted almost everything. The change in technology can be clearly reflected in our daily lives, similarly the change can also be observed in almost every other field. From education, health and social services to the economic factors, technology has brought change in almost every field. The pace at which the technology is changing is also important. Only a decade ago, what was considered impossible or merely a work of fiction is completely real and happening today and the credit goes to the rapid development in technology.
The improvements in the computer software, hardware and communications technology in the early 1990s are the reason behind the improvements in the access to information regarding other economies and the discovery of economic potential. The most important facility provided by Information Technology is global communication networks. This communication network helps in the expansion of resources, ideas and products between people regardless of their geographic location. In the initial era of globalization, the missing link for global integration was information technology. IT has been a catalyst for global integration therefore it can be said that IT plays an important role in the pace of current globalization process (globalenvision.org 2006).
The recent developments in communication technology and the ability to process information in digital form are responsible for the reshaping of economies and social lives in a number of countries. The use of IT all around the global has increased within a very small span of time and this phenomenon can be vouched from the fact that merely 20 years ago the use of desktop computers was limited to a very small of people, however today everyone has access to a computer. What is more interesting is the fact that merely 10 years ago, the access to internet was limited to the researchers and scientists however today, almost everyone has access to internet and most of the people remain connected to internet at all times.
All these technological factors lead towards increased global economic activity. Every individual can access any information over the internet and the barriers to information have been eliminated after the advent of information technology. There are a number of search engines over the internet that help the individual users access any information whether related to the economy of a region of regarding its culture.
Internet and Economic Globalization
Due to information technology, multinational organizations are able to execute their researches to determine the region with most economic potential. Thus information technology is responsible for the increased Foreign Direct Investment in underdeveloped countries in the recent past (ILO 2004). The information regarding the economic conditions of a country is easily available over the internet and the information regarding the culture and social trends in a country can also be accessed easily. Therefore it has become easier for large organizations to determine the direction of their investments.
Internet has also made it easier for organizations to hire labor from all over the globe. Initially, the barriers to communication had limited the scope of human resource of an organization to the region where the organization operated, however the recent developments in information technology has made it possible for the organization to execute its staffing procedures remotely. Thus, internet has enabled the organizations to select best human resource from all over the globe. Some countries have competent IT professionals while others have competent accountants, and due to information technology, organizations can hire the most competent people for its respective functions from respective countries. Internet has also made it easier for individuals to look for jobs internationally. Almost all the organizations welcome job applications through their website and it is a significant opportunity for individuals all over the globe who seek for jobs.
Internet has also made it possible to execute economic transactions directly from computers. Retailers and customers can contact each other directly through internet and transactions can be carried out there and then. Economic funds transfer services have made it easier for customers to shop over the internet. There are a number of websites that provide online shopping facility and the products selected by the customers are shipped to them regardless of their geographic location.
Internet has also changed the face of global media. News from all around the world can be viewed by anyone anywhere in the world. Information technology has also globalized education. There are a number of institutes that provide educational services over the internet and students can choose to take any course from any institution. Thus, the service industry has also globalized due to information technology.
Internet and Social Globalization
Advancement in technology is also the reason behind the increase in social globalization. The world has become a global village and this is because of the free flow of information all around the globe facilitated by information technology. Social networking websites have connected people from all around the world and they are able to communicate with each other in new and innovative ways. Internet has also made video calls possible for every individual. This has totally changed the way communication takes place. Due to video conferencing, meetings can take place regardless of the geographic locations of the members of the quorum.
Services industry has received a global boost due to information technology as well. Music and movies can be bought and digitally downloaded and the producers are earning significant revenue in this manner.
CONCLUSION
Thus, from all the facts provided above, it can be inferred that globalization and technology have a positive relationship. From the historical perspective, it can be seen that globalization received a significant boost after the advent of technology related to communication. Thus technology is highly relevant to the current boost in the process of globalization. Due to information technology, multinational orga...