Technology and Its Impact in Globalization, Essay Example

Globalization has increased at a fast rate in the last few decades due to advancements in information technology. Internet has made it possible to quickly access information as well as improve communication. A research studies showed that internet helps businesses accelerate the diffusion of their products because it is possible to provide easy to access information to customers online and market products more cheaply (Prince & Simon, 2009).

Another way technology has helped globalization is through progress in supply chain networks. Internet and communications technology has enabled companies to have a global supply chain as well as production facilities in various parts of the world. Despite the distances involved, these production facilities and suppliers collaborate with each other in real time and are able to track each other’s progress. Technology has made it possible for companies to sell products directly to customers without any middle stakeholders such as distribution intermediaries as well as sell certain products and services in digital format with none or very negligible marginal cost. Apple can operate all of its iTunes global websites from a single IT center and still be able to meet the needs of different markets.

In short, advancements in technology have made factors of production more mobile, communication more effective and cheaper, and reaching and marketing to customers more economical and effective.

Reference

Prince, J.T. and D.H. Simon. “Has the Internet accelerated the diffusion of new products?” Research Policy October 2009: 1269-1277.