GLOBAL BUSINESS

Impact of Technology in Global Business

Impact of Technology in Global Business

Globalization

Globalization is defined by Jatuliaviciene & Kucinskiene (2006) in three different sections. First is the economic globalization which was associated with political globalization. Under the economic globalization, democratic, market-driven and open economies provide opportunities that will respond to the global challenges. It will be further developed through technological globalization wherein the rapid diffusion of free enterprises is accelerated by means of advance technology and new ways of communication. Indeed, new opportunities are essentially comes from advances in computer technology. And together, this economical, political and technological globalization initiates another concept which is the psychological globalization. With psychological globalization, relationships between participating countries are deepened, while at the same time, interdependence among people from these countries is broadened.

After taking into account the theories behind globalization, Jan Erik Lane (2004), tackles the possible benefits and damages of globalization. Concisely, the positive evaluation of interdependence presumes global recognition of the interests of mankind in peace, human rights and cultural integrity. Economically, it also entails the possibility of greater output for consumption. Furthermore, economic growth will be achieved through economies of scale and innovation of technology will be initiated to create productive systems for business operations. However, in so far as how idealistic globalization is, its dangers to mankind are as realistic as its advantages. Among the negative outcomes include energy and environmental disaster, as well as, social problems. Notionally, in pursuit for a geographical competitive advantage, a country sacrifices its environmental control to attract pollution-intensive firms. That action significantly leads to environmental damages that later on could affect the entire society if left unsolved. In addition, unequal distribution of outcomes enhances the discrepancy between poor and rich people. By taking advantage of cheap labour, workers remain underpaid and overworked.

Currently, the recognized regional blocs include European Union (EU), North America Free Trade Agreement (NAFTA), and East Asia Community. In the East Asian region, the two (2) leading intra-industry trades are the Newly Industrialized Economies (NIEs) and the East Asian Economic Association (ASEAN). NIEs basically comprise the newly industrialized economies in Asia such as Hong Kong, China, republic of Korea, Singapore and Taipei, China. ASEAN on the other hand, successfully incorporates the economic policies of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.

Globalization may not be perfect after all. Even so, it will be continually develop because of the need for maximization of profit within nations. By globalization, discriminatory measures and market access limitations will be eliminated. These measures will consequently improve efficiency and competitiveness of services while diversifying the production and supply capacity. But, if we also provide substantive resolutions on the negative externalities that it brought about, only then we may attain the primary goal of globalization - and that is, to be mutually benefited from international trade.

Historical Example

While researching a company to write about I ran across the company Gap Inc. Gap is a clothing retail store here in the US that caters to the younger ...