How Changes in Technology Contributed To the Globalization of Markets
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Technology has undergone tremendous changes over the years. Tremendous changes witnessed in technological sector have contributed significantly towards globalization. This is because technological improvement makes lives of all people across the world to be more convenient. Improved technology in transportation, internet, and microprocessors facilitated rapid growth of globalization. For instance, you cannot a company mile away and about ordering their products without telephone. Internet is used by people for advertisements, telemarketers, and transportation (Hill, 2005). Machines can increase the rate which products are manufactured so that more of the products can be made and supplied faster. A global audience is therefore, being created by telecommunication while global village is being developed by transportation. This is because the evolving technology would result to an influence on globalization of markets and production (Hill, 2005).
According to Hill (2005), the extensive use of technology in microprocessors and telecommunication is increasing the amount of information being transferred while lowering the cost at the same time, and this has proved to be crucial in emerging markets. The chances for companies to expand businesses are increased because of plummeting in global communication cost. Many businesses transport their manufacturing plants to countries, which offer cheaper raw materials and natural resources so as to reduce their cost of production by reducing transportation cost. Microprocessors, internet and transportation- which are the three major changes in technology- have supported globalization of production and markets significantly (Hill, 2005).
People across the world will miss very many opportunities to connect with others and business will be unwilling to put money to expand their markets in the absence of lower communication cost. The real cost of information processing and communication have reduced significantly in the past two decades due to the technological innovations (Hill, 2005). Technological advancements make it possible for a business to create and then manage a globally dispersed production system thus; it will not be possible to have such globalization of markets or even production in the absence of technologies.
How the Internet Affects International Business Activity and the Globalization of the World Economy
Internet affects international business activity and the globalization of the world economy significantly. For instance, information moved across the world through telephone, television or print before the advent of internet. Small businesses used to hunt for information on their own contrary to large businesses that were working on improvements in technology, which had access to the latest information (Doole & Lowe, 2008). However, internet has enabled both large and small businesses to access instantly any new product developments and technological advancements, which can help enhance their products and compete with larger.
Doole & Lowe (2008) state that in addition, the manner in which small businesses exchange information has changed considerably since the internet has become popular. Initially, small businesses lacked financial resources to organize large meetings with suppliers or developers, which needed air travel and accommodation expenses. Currently, small businesses can collaborate with developers and vendors across the world cheaply and with a detailed exchange of necessary information using email, video conferencing, among others (Doole & Lowe, 2008).
Lastly, the ability for small businesses to reach an international audience at an extremely low cost is the major impact that internet has on global markets for small businesses. A corporate website, for instance, can become a marketing resource for a company that can be accessed by anyone across the world (Doole & Lowe, 2008). Companies are permitted by social networks to interact with millions of potential customers across the world without paying any fee.
References: How Changes in Technology Contributed To the Globalization of Markets Essay
Doole, I., & Lowe, R. (2008). International marketing strategy: Analysis, development and implementation. London: Cengage Learning.
Hill, C. W. L. (2005). International business: Competing in the global marketplace. Boston: McGraw-Hill/Irwin.
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