Globalization and Technology

GLOBALIZATION AND TECHNOLOGY

I think that if we want to talk about globalization first of all we must define what the globalization is. Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world.

When i make some resarches on in the internet i find two different ideas about globalization and technology first one says that: Globalization and technological innovation are interdependent processes. Globalization has a fundamental influence on the creation and diffusion of technology which, in turn, affects the interdependence of multinational corporations and where they locate their activities. In this book Rajneesh Narula examines the international aspect of this interdependence at two levels: first, between sites, by examining the role of cross-border initiatives in the innovation process; second, between corporate entities, by studying the dynamics of inter-firm collaboration in research and development.

But , the second idea which i find it says that: Technology and globalization go hand-in-hand. Globalization unleashes technology, which in turn drives firms to plan production and sales on a global basis. Technology changes the work we do and in nearly all cases, the jobs created by it demand more education and training. It also changes the way business operates by transforming relationships between suppliers, producers, retailers and customers.

In my opinion the second idea is more rationalist because i find several resons to say it is true. Now i want to talk about this reasons and also give some examples about them.

Globalization means to make worldwide in scope or application, and the globalization of trade means freer and more intense worldwide trade across national borders. Technology helps to make globalization possible. Because computers can be interlinked across companies, countries and continents, information is no longer weighed down by geography or time. For example;

With globalization, Canada faces stiff competition for international markets. Increased competition has resulted from:

• the new market-based economies of developing and former communist countries;

• the introduction of new products and processes;

• more efficient use of old materials; and

• innovations in information technology.

These forces have transformed markets that were once regarded as a reliable source of earnings. For example, in the past, Canada prospered from its natural resources. But as resources and world prices have declined, the global economy has challenged this advantage by demanding more innovation, higher product quality and increased productivity. It is gratifying to note, however, that firms in Canada's resource sector that have upgraded their products, used technology skillfully, sought niche markets and revitalized their work forces have not only survived, but prospered.

Even consumers have begun to globalize. With the relatively strong dollar of the late 1980s, Canadian consumers became more conscious of their shopping options and a greater share of their spending took place outside the country. Increased cross-border shopping forced Canadian retailers to offer longer business hours, higher quality products and better and friendlier service. Even though cross border shopping has declined with the value of the dollar, the arrival of U.S. based retailing giants, such as Wal-Mart, is continuing to force dramatic restructuring and shakeout in Canadian retailing.

Globalization Means New Markets

Canada is one of the world's main trading nations. Canada's wealth has been largely built on trade, which accounts for more than half of the gross domestic product, or almost triple the proportion in the United States.

Surprisingly, few Canadian firms engage directly in exporting. In 1992, only about 25 percent of manufacturers made direct export sales, five firms accounted for 24 percent of all our exports, and 50 firms accounted for over 50 percent.

Free Trade

Free trade has been a hotly contested issue. Nevertheless, it is generally agreed that free trade in some form or another is inevitable. Sectors that have declined as a result of the Canada B U.S. Free Trade Agreement (FT) were sunset industries such as clothing, furniture and various household products.