INTERNATIONAL LAW

International Law

International Law

Introduction

Technological advances have tremendously fostered globalisation. Technology has in fact been very important facilitation factor of globalisation. Several technological developed become a compelling reason for internationalisation. Technological break-throughs are substantially increasing the scale economies and the market scale required to break-even. Global sourcing was encouraged not only by trade liberalization but also by technological developments which reduced trans- port costs. Advent of containerization and super tonnage cargo ships drastically reduced transport costs. Technology monopoly, like possession of patented technology, encourages internationalization because the firm can exploit the respective demand without any competition.

Law of international business

The pace of globalisation has been accelerated by several enabling technologies. Technological revolution in several spheres, like transport and communication, has given a great impetus to globalisation by their tremendous contribution to the reduction of the disadvantages of natural barriers like distance and cost. The IT revolution has made an enormous contribution to the emergence of the global village. The developments in the field of air cargo transportation of sensitive goods (like perishables and goods subject to quick changes in fashion/ taste). Developments of containerization and refrigeration have also been of high significance. The steep fall in the cost of transportation and communication have considerably accelerated pace of globalisation. All these have contributed to the drastic transformation of the logistical and global distribution of the value chain system. The world-wide web has a stupendous impact on globalisation.

Global village Because of the shrink ing time and shrink ing space thank s to the technological revolution and the disappearing borders thank s to the liberaliz ation and technological factors the world is evolving into a global village, in several respects. C ontacts between the world's people are widening and deepening as nature and artificial barriers gall. H uge declines in transport and communication costs have reduced natural barriers. S hipping is much cheaper: between 1920 and 1990 maritime transport costs fell by more than two-thirds.

Between 1960 and 1990 operating costs per mile got the world's airlines fell by 60 per cent. Communication is also much easier and cheaper. Between 1940and 1970 the cost of an international telephone call fell by more than 80 per cent, and between 1970 and 1990 by 90 per cent. In the 1980's telecommunication traffic was expanding by 20 per cent a year. T he internet, the take off point for the information superhighway, was used by 50 million people in 1998, with the number of subscribers tapping into it doubling every year. Some of the change in international trade and finance reflect advanced in technology. T he lightning speed of transactions means that countries and companies now must respond rapidly if they are not to be left behind.

Technological change is also affecting the nature of investment. Previously, high-technology production had been limited to rich countries with high wages. Today technology is more easily transferred to developing countries, where sophisticated production can be combined with relatively low wages. T he increasing ease with which technology can accompany ...