EFFECTS OF GLOBALIZATION

Effects Of Globalization And The Diffusion of Information and Communication Technologies (ICTs) on Small and Medium Enterprises (SMEs).

Table of Content

EFFECTS OF GLOBALIZATION1

INTRODUCTION1

DISCUSSION2

ICTS AFFECT SMES3

GLOBALIZATION AFFECT SMES7

INFORMATION AND COMMUNICATION TECHNOLOGY: A HISTORICAL OVERVIEW8

THE NEW WAVE TRIGGERED BY ICT11

THE ROLE OF ICT IN MANAGING GLOBALIZATION13

1.Telecom sector reform:16

2.Proper business climate for attracting FDI16

3.Provision of facilities17

4.Human resource development17

5.Digitalization of broadcast media17

6.Research and development18

7.Broadband networks18

REFERENCES19

Effects Of Globalization

INTRODUCTION

Globalization, in simple terms, means linking people and areas of diverse resources into a common economic space. In the contemporary world, it is transforming public policy by the emergence of an integrated global economic and communication space. It is a conscious process of stepping out of the intellectual and operational confines of a domestic enterprise to recognize and deal with global opportunities and threats in a strategically and operationally integrated manner. (Suchitra 2002:3) Globalization is not merely setting up units in foreign countries but a holistic approach to managing business around the world to obtain maximum synergy in operations. It entails a transformation of levels of organization (local, national, regional, international) of social relations and transactions generating interregional flows and networks of activity, interaction and authority and depends on the extent of global networks of relations and connections and their level of activity, including global flows of trade, investments, information, extent of physical, legal, and technological infrastructure and finally the institutionalization of such relationships.

DISCUSSION

Globalization promotes the development of productive forces, scientific and technological progress, and economies of scope by collaboration in design and production across borders, and improves communication among peoples and countries. It has greatly improved access of technological latecomers to advanced technologies. Improved access to technology provides a unique opportunity for increased demand for skilled labour in developing countries and consequent rising per capita incomes. Driven by constant improvements in communications and transportation, globalization is vulnerable to economic and political setbacks. It is argued that if too many countries try to manipulate the system for their advantage, then the global economy may become unstable or succumb to mutual suspicions.4 Security is another issue. Concerns related to security of data or databases, (Reijntjes & Haverkort 2002:12) fraudulent use of personal information, encryption laws, authentication of identities, viruses, worms, hackers and other threats to which the digital domain is most susceptible will need to be addressed by laws and their strict enforcement globally.

The United Nations Millennium Declaration upholds the principles of human dignity, equality and equity at the global level as nations and peoples have become increasingly interconnected and interdependent. It recognizes the need to ensure that globalization becomes a positive force for all the people of the world including the special needs and problems of landlocked and small island developing countries. The ECOSOC 2000 Ministerial Declaration1 gives special attention to the application of information and communication technology (ICT) for development, for which urgent and concerted actions at the national, regional and international levels are required. The major impediments to the participation of the majority of the people in the developing countries in the ...