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Demographic & Technological factors Impacting Internaltional Business

Submitted By: Karanveer singh

the technology is usually referred to as labour-intensive. on the other hand. • Primitive technology is used in the production process.• Technology can be classified in several ways. machinery. marketing and administrative techniques. equipment and other capital goods are sometimes referred to as hard technology while soft technology includes management know-how. finance. . For example. blueprints. • A highly advanced technology. is generally termed capital-intensive.

The advancements in medical technology. have contributed to longevity in many societies. In addition.• Computer technology has had an enormous impact on education and health care. the introduction of robots in many factories has reduced the need for labour. for example. .

timeconsuming and costly process. .• Technology transfer is a complex. • Furthermore. and the successful implementation of such a process demands continuous communication and cooperation between the parties involved. technology transfer cannot be effective if it experiences conflict with the economic and social needs of the recipient country.

Factors important in technological env. • The type of technology in use .Technological environment. • The level of tech developments. . • The speed with which new technology are adopted and diffused are important to business.

• Automation may be opposed in developing countries which are labour abundant • Timing of introduction of a technology is important. • Time lag is diminishing between developed and developing countries. • It should be innovative to that particular region. .

.• The most common technology transfer from industrialized to developing countries has been in agriculture and health care. As a result of improved health care systems. infant mortality rates have been cut while the incidence of common diseases such as malaria and typhoid has been reduced.

.• Unfortunately. The introduction of nuclear weapons. • In addition. there is a negative side to technological progress. factories using modern technologies have polluted both air and water and initiated environmental and healthrelated problems. for example. has made the destruction of the human race a frightening possibility.

Gillette sold the technology to Wilkinson. So the cost of technology transfer has been much greater than the income received through the sale of technology. the technology transfer can result in unemployment in the home country and future loss of technological superiority. For the seller of technology. a British garden tool manufacturer . for ex.Technology transfer may become a serious source of conflict between donor and recipient countries. • The recipient country may feel that the donor is trying to dominate it through technology. capital and production. Dependence on foreign technology can be viewed as a serious threat to economic independence. • Countries that export technology may experience different problems.