Globalization is Increasing through technology. Technologies are playing a crucial role in allowing the globalization of economic and social activities. The ways in which new technologies penetrate individual nations are heavily affecting their actual and potential economic development
Why spreading technology matters?
Technology advancement is a vital driver of enhancements in earnings and ways of life. However, new information and advances do not really grow all over the place and at the same time. In this manner, the manner in which technology spreads across nations is basic to how overall improvement is made and shared across countries.
Globalization Improves development of Technology
The expanding power of worldwide information streams focuses to significant advantages of globalization. While globalization has been much criticized for its conceivable negative results, our investigation shows that globalization has raise the spread of innovation borders in two ways. First, globalization allows countries to gain easier access to foreign knowledge Second it improves global competition including because of the rise of developing business sector firms and this strengthens firms’ incentives to innovate and adopt foreign technologies.
The increased transfer of knowledge and technology to emerging market economies has somewhat balance the effects of the recent slowdown in innovation at the technology frontier and helped drive income convergence for many emerging economies. In contrast, advanced economies have been more affected by the technology slowdown at the frontier.
Finally, our study finds evidence that technology leaders themselves benefit from each other’s innovation. This suggests that, going forward, with the growing contribution of China and Korea to the expansion of the technology frontier, there may be scope for positive overflows from these new innovators to the traditional innovators. Knowledge and technology do not flow in one direction only.
Spreading the know-how of globalization through Technology
Globalization brings a key benefit it stimulates the spread of knowledge and technology, helping spread growth potential across countries. The concentration of foreign knowledge and the capacity to build on it most often requires scientific and engineering know-how. Investments in education, human capital, and domestic research and development are thus essential to build the capacity to absorb and efficiently use foreign knowledge. It likewise requires an appropriate degree of protection and respect of intellectual property rights both nationwide and internationally to preserve the ability of innovators to recover costs while ensuring that the new knowledge supports growth globally.
Policymakers must also make certain that the positive growth benefits from globalization and technological innovation are shared widely across the population, including by ensuring that innovating firms do not exploit the newly acquired technology to gain excessive control of a market to the detriment of consumers.
Contesting and Competitiveness of Globalization through Technology
With technological globalization, the world has diminish and reduced into a global platform where buyers, sellers and transactors are able to discuss and negotiate in real time. This annihilates geographical and trade barriers, since now most businesses are in equation with each other. Thus, what is implicit is that businesses do not compete locally, or domestically, but on global basis. Purchasers could get their products and ventures from anyplace on the planet and not really from their own terraces.
Survival of the Relevant and strongest
A natural companion of technological globalization is in terms of the fact that many State government are now not able to offer the same kind of state trade barrier and security that they could offer several decades ago.
All firms, big and small, regional and domestic, State owned or non State owned, have now been drawn into the international competitive stage and there is no escape.
Economies of scale
This is one of the major consequence of technological globalization under which cost of production and in effect, selling prices of goods, products, services, consumables could be significantly reduced due to large scale production, huge distributive networking and optimum capacity utilization. There may be major price differentiations between the same products within the same location, one maker gaining the price benefits of economies of scale while others do not. This seems unfair, but is really true.
Impacts on labor markets
The effects of mechanically actuated globalization are to be sure complex. The interest and need for manual methods for creation and emotionally supportive networks to keep up endeavors is enormously decreased under worldwide frameworks and the highlight is more on electronic and computerized implies. Greater use of high speed machines, CAD, CAM and greater influences of contemporary quality and cost controls including Six Sigma, TQM, Lean Management and modernized stock controls like JIT, PIS, EOQ are all greatly facilitated and more amenable under of technologically induced globalization. Use of the modern versions of computer and internet aided communications, video conferencing, VoIP and other electronic and computer controlled business communications.
Feasibility and life period of Globalizations through Technology
While this has many advantages, they mainly rise to minority advanced, development and technologically more powerful countries and economies of the world. The vast majority of developing and undeveloped economies are still in state of flux and dilemma, not knowing whether technological globalization would benefit them or destroy them.