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Technology has undergone tremendous changes over the years. Tremendous changes
because technological improvement makes lives of all people across the world to be more
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,
This is because the evolving technology would result to an influence on globalization of markets
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
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).
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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
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
TECHNOLOGY AND GLOBALIZATION 4
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.
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References
Doole, I., & Lowe, R. (2008). International marketing strategy: Analysis, development and
McGraw-Hill/Irwin.