How has Technology Contributed to Globalisation?

How has Technology Contri excepted to Globalisation?Explain How Changes In Technology down Contributed Towards Globalization Of Markets And Of Production?Technology has dramatic eithery changed peoples way of life all over the world and the world today has become a neat manifestation of a orbicular village. Not only the frequency of world(prenominal) travelling increased manifold but the possibilities of cross-border trading of goods and work at take a crap also increased exponentially. These impacts are collectively known as globalization.(Hill, 2009) defines globalization as a process which enables individuals, organisations and governments from different natins to come across separately another(prenominal) and interact in an intergative manner. The end result of such intergation would be an intergated globalised merchandise system which can act as a break up pot of indivual economies of different nations. at that place are two ways in which globalisation can be envisa ged, i.e. with the production posture and thebmarket perspective. (Hill, 2009) defines the markets globalisation as melting down and convergence of individually independent market places into an fused market place. Sharing of the sources of production from different geographical locations for levaraging the quality and approach of the goods and services produces is the idea behind the products globalisation. (Hill, 2009)M some(prenominal) institutions select been formulated to supporter manage, regulate and police the phenomena of globalization and to promote the establishment of transnational treaties for global trade. A few are as seeingThe World plenty Organization (WTO)The International Monetary Fund (IMF)The World BankThe linked Nations (UN)These institutions act on an international level to regulate and tackle any problems that the different countries, companies and individual whitethorn face when undergoing globalization e.g. The IMF provides monetary services and act s as a last resort for the members in financial hurt (Gitman, 2008)Now the question is how instead of what. How does globalization happen? What drives globalization? There are many drivers or rather changes that result in globalization. Generally, thither are two macro drivers of globalization. These are the declining trade and investment barriers mingled with countries and changes in applied scienceOrganisations across the world now face pull down level of obstacles to investing and trading in foreign lands. This flexibility allows the firms to carry global locations where they have to spend minimum on production cost and reap maximum benefits in return by strategically local anaestheticisation of function their production site, and service and product outlet locations. Design can thus be created in one global location, production at a second global site and the niche market can be a totally far off market at the other end of the world. Globalisation of production thus explo its cheap labour in the third world markets and rich buyers in the commencement world markets. (Arribas, 2009)The expert changes are not just limited to the automation of the production air travel but it also includes the advancement in infrastructure and connectivity. The most heavy innovation has been the microprocessors. The developments in communication technologies like wireless, optic fibre, satellite communications and the rapid growth of the internet have brought the global contrast to a previously unimagined level. Improvements have also occurred in the field of conveying technology resulting in the development of commercial jet aircraft, which has reduced the cartridge clip for transit.Globalization is not only resulting from declining trade barriers or changes in technology but upon scrutinizing two other factors come into play. These are Foreign contribute Investment (FDI) and increasing international trade.Globalization is not a bully line event rather it has b een maturing from many decades and the implications of this phenomenon are being potently felt now. This has been going on since the 1960s. In the 1960s the US dominate the globes economy and the international trade picture and it also led the apparent movement when it came to FDI, similarly the US transnationals ranked high in international business (Hill, 2009). This has all changed due to globalization and other countries, firms and individuals have risen to deal in the global market place.Much has changed in the demographics of the world when looking at world GDP and trade. chinaware did not have a share in the worlds output in 1963, now has 11.5 % of the GDP in 2007 and 7.2% of the worlds export in 2006. This shows the tremendous effect of globalization in the trustworthy world market. China in 2008 was listed as the 3rd largest Economy establish on Nominal GDP. The share of world output generated by third-world countries has steady increased since the 1960s. There also has been a persistent growth in cross-border flow of FDI and it does not come as a surprise that China has been the largest receiver of FDI (Hill, 2009).There are many facets to globalization and on a closer look there is the multinational first step. A multinational enterprise (MNE) is a type of business which has operations in two or to a greater extent countries. A multinational enterprise can also be referred to as an International Corporation. MNEs have male monarchful influence over local as well as the global economies and play an key reference in international relations and globalization.In the past the western market was closed for many economies but that trend has changed and many markets have candid up for the western market to invest in. The collapse of communism in Eastern Europe has created a host opportunities for export and investment. The biggest opportunity emerged in China due to economic developed even with the continuing communist control. Also the change in democracy and the free market reforms in Latin America have also given a misfortune for investment from foreign investors.Going over all what globalization has to offer, a question comes to ones mind that a shift towards a global marketplace a good thing? There many views on this crabbed question. Many experts believe that globalization is helping prosperity by providing more jobs, lower prices of labor, materials, land and thus resulting in more profitability. Whereas other experts aim that globalization is not beneficial as managers who are managing transnational and multinational organizations have to take into account a lot more factors as compared to stereotypical administrators (Hill, 2009). Managing an international business differs from a typical business in four notable areasDifferences in countries require companies to employ different practices in different countries.Administrators face greater and complex range of problems.Companies have to follow the different li mits imposed by different governments in countries and have to work within those limits.International business requires converting funds and is very susceptible to fluctuations in the exchange rate.To overcome these insights about managing international organizations managers have to use un-structured solutions and practices that may require additional resources in terms of labor, capital and land. This brings us to our undermentioned thought, why so many experts against what globalization have to offer. (Artis, 2009)Globalization has once in a while been regarded as a solution to problems like underdevelopment, malnutrition and violation of humankind rights, and important human rights institutions have been set up and incorporated into the global human rights regime. Governments are finding it increasingly difficult to violate their citizens human rights without attracting the charge of the media and international organizations as a result of developed telecommunications and gl obal interdependence. Indeed, boilersuit human rights practices have improved worldwide during the last decade or so. However, this improvement has neither been universal nor linear. (Bardhan, 2006)The contemporary world order owes its origination to a large degree to the information power unleashed as a result of the free flow of ideas and communications across geographical boundaries without any restriction or obstacles with help of the latest communication technologies. While globalisation has made it possible for the human rights bodies to react on human rights abuses in the remote societies of the world, the same globalisation has in fact also opened the autonomous societies to human rights abuses at hands of the more tendinous actors in the global scenario. What susceptibility be a collateral damage for a powerful actor in the emerging world order might be a human rights abuse involving victimisation of defenceless children and females for the recipient. thence with respe ct to human rights, globalisation is a double edged tool and it can work in both ways. Not only do the weaker players in this world order risk the wrath of raw power of the more powerful actors but the multinationals and conglomerates tend to act as right powers in their own right. The citizens of the weaker nations are left at the mercy of powerful yet unelected global giants like IMF, the World Bank , peacekeeping forces and first world NGOs who increasingly control the lives and fates of the denizens of the weaker nations of the world.Weve talked about what globalization is, what the key segment drivers of globalization are, how it affects the production process. In doing so weve talked about the MNCs (MNEs) and also how the demographics have changed since globalization started. This also has provided us with a picture of how managers who are work for transnational organization take into account different factors for their, planning, organizing and leading decisions. attainm ent in technology did not globalize the production and marketplace but it has increased the momentum of globalization manifolds. Although globalization is widely considered as a positive phenomenon but as always everything has its virtues and vices. 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