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Implications of Increasing Globalization through Technology

Increased globalization through use of technological innovations, paradigm shifts and product/service development has been on the rise in the 21st Century, partly in response to global overtures and partly due to need for businesses, both in developing and underdeveloped countries to enter into the mainstream of the global ‘€˜marketplace’€™ or be lost forever in the quagmire of global cutthroat competition. Indeed, the implication of globalization through technology has been many and varied, but this article would consider only the most significant of them:

  1. Competition and Competitiveness: With technological globalization, the world has shrunk 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. Buyers could get their goods and services from anywhere in the world and not necessarily from their own backyards. The onus on providing world class goods, services, products and utility values are now felt even for the small firm and all need to perform like local, global firms.
  2. Survival of the fittest and strongest: A natural adjunct of technological globalization is in terms of the fact that many State government are now not able to offer the same kind of state protectionism 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 arena and there is no escape. The writing on the wall is clear- Perform or Perish. The days of state protectionism are over.

  1. Jobs have moved from costlier origins to cheaper destinations: Business priority restructurings, budgetary constraints, environmental laws, governmental rules and regimes, obdurate and disruptive tax laws and industry-specific issues including caps on capacity utilizations, among others have encouraged employment and capital flights from higher cost destinations like the US, UK, Canada or Australia to cheaper, yet high quality, developing, outsourced countries like India, Pakistan, Kenya, Sri Lanka or Philippines, for instance. While this creates major job opportunities for residents of this outsourced countries, the fact remains that unemployment figures for these outsourcing countries becomes more obvious and intense. USA is the best illustration for this bit of argument.
  2. Economies of scale: This is one of the major fallouts of technological globalization under which cost of production and in effect, selling prices of goods, products, services, consumables, etc, 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. Essentially, on the flip side, smaller firms get marginalized and eliminated from the marketplace, since they are not able to compete, at least price wise with larger firms. Economies of scale act to the benefit of bigger firms to the detriment of smaller ones.
  3. Impacts on labor markets: The impacts of technologically induced globalization are indeed manifold. The demand and need for manual means of production and support systems to maintain enterprises is greatly reduced under global systems and the accent is more on electronic and digital means. 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. Use of more machines means usage of less human and labor and reduces scope for human employment.
  4. Sustainability and life span of technological globalizations: While this has many advantages, they mainly accrue 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.

Besides exacerbating economic inequalities in world, race for technological leadership and supremacy could be hazardous, in terms of extreme and extensive competitions, with all the risks and very little advantages.

Indeed, whether technological globalization would work well for all countries, developed, underdeveloped and developing is indeed a matter of conjecture. The gains by one country is indeed at the loss or expense of the other, especially in areas of employment, IPR’s, technological transfers and building global business networks. It is indeed a David versus Goliath situation, except that in this battle, the more technologically advanced Goliath is the clear winner.

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I’m Danny Lake having decades of experience in a essay writing company . I am always eager to help students by solving their problems as possible as I can. This online company is serves as platform to interact students with experts to clarify all types of academic doubts.

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