The development of technology-based communications, such as email and mobilephones, has helped revolutionise the world in terms of globalization.There are many ways in which Information Communication Technologies (ICTs) haveimpacted globalization and it is commonly believed that the information revolution madeglobalisation possible. This article looks at how ICTs, such as the internet and satellitephones, have has a major impact on banking, production and the perpetuation of capitalism and globalization over communism.
ICTs and Globalization of Banks
One way ICTs have facilitated and impacted globalization is by making the worldeconomy electronic, through information systems and technology rather thanorganisational hierarchies. The development of ICTs, and specifically the internet, hasfacilitated the growing connection of large banks and corporations across the worldthrough a series of information communication networks which are online, in terms of management, selling and production.Because of the combination of information technology and global networks there is nowa new world information economy, within which investment, production, management,markets, labour, information and technology are organized across national boundaries.Examples of this can be seen in banking as global information networks have made itpossible for banks, corporations, as well as millions of individual investors, to transfervast amounts from one side of the world to another at the click of a mouse.
ICTs and Globalalization of Production
ICTs and global networks have not only impacted the economy in terms of banking butalso productivity and this is crucial to the information economy as productivity is one of the driving forces of economic progress. In this global economy productivity has beenaffected in two ways by ICTs:
Firstly, it is now possible for transnational corporation’s to locate their
headquarters in say New York City, design facilities in Boston, manufacture inIndia and then assemble products in the UK. It is possible for a corporation tolocate itself around the world like this due to the development of ICTs in terms of the internet and satellite phones that allow world wide communication.
Secondly, the ways in which companies produce, and what they produce, ischanging due to ICTs. How they produce is changing because of the developmentof computerised robotic production lines. This means that productivity is nowpowered by information technology, and can be seen as faster, more efficient andhigher quality than heavy labour production lines.