According to the Organisation for Economic Cooperation and Development (OECD) globalisation is defined as: an increasing internationalization of markets for goods and services, the means of production, financial systems, competition, corporations, technology and industries.
Information technology was necessary to enable globalisation and this technology emerged from developed countries. It changed the economic relationship between countries because it made knowledge an increasingly important component in the production of goods and services. Knowledge and high tech industries are the fastest growing in the world today and for countries to compete in these sectors they need to invest substantially in education and training. This is easier for some countries than others.
Technology has typically been introduced to developing countries by large multi-national companies doing business there and so the technology used has originated in developed countries, where most of these companies’ research and development takes place. Many argue that this is increasing the power of the MNCs in international markets and weakening the bargaining power of developing countries.
Technology has also enabled the world to become more interconnected, beyond the economic sphere, with greater access to information and communication which is having a profound impact on societies. The International Labour Organisation has the following view:
“The industrialized countries were the source of the technological revolution that facilitated globalization but that revolution has also had ripple effects on the rest of the global economy. At one level, the new technology changed international comparative advantage by making knowledge an important factor of production. The knowledge-intensive and high-tech industries are the fastest growing sectors in the global economy and successful economic development will eventually require that countries become able to enter and compete in these sectors. This implies that they will have to emphasize investments in education, training and the diffusion of knowledge.”
You May Also Find These Documents Helpful
-
1. List at least three effects IT has had on globalization. Remember to define globalization in your response!…
- 1675 Words
- 7 Pages
Powerful Essays -
1. Introduction From around 1938 to 1974, the economy was built on a manufacturing base geared toward standardized production. It was organized into stable, hierarchical and generally autocratic organizations. These organizations achieved a competitive edge in the market by making standardized products faster and more economically. They focused on incremental cost reductions and a national marketplace. This is how success and prosperity were achieved in most states. (Jacquelyn P. Robinson, 2000) Now that companies can source capital, goods, information, and technology from around the world, often with the click of a mouse, much of the conventional wisdom about how companies and nations compete needs to be overhauled. In theory, more open global markets and faster transportation and communication should diminish the role of location in competition. After all, anything that can be efficiently sourced from a distance through global markets and corporate networks is available to any company and therefore is essentially nullified as a source of competitive advantage. (Michael E.Porter, 1998) Traditional concepts of the factors of production need to be changed - Was land, labour and capital, now need to add knowledge. A firm 's ability to gather, process and distribute information into enterprise wide knowledge is a core competence in competitiveness. http://www.scribd.com/doc/28758846/Information-Economy-and-Knowledge-Management; accessed on 26.12.2010…
- 6810 Words
- 28 Pages
Good Essays -
Without overstating the obvious, not all countries are endowed with equivalent natural resources and other key factors of production, including labor and even cultural attributes. For many reasons, countries may want to foster the development of advanced industrial goods, even though such a country does not possess the necessary technology or skill sets to produce such goods. Advanced industrial countries that have invested heavily in technology and education have taken the lead in the production of many of the worlds technologically advanced products such as automobiles, computers and aircraft, in some cases because they were first movers in these industries.…
- 6319 Words
- 26 Pages
Good Essays -
Globalisation is a capitalist process that has taken off as a concept in the wake of the collapse of communism as a viable alternate form of economic organisation as we are increasingly been seen as living in the era of globalisation. Globalisation describes the increased mobility of goods, services, labour, technology and finance & capital throughout the world. Although globalisation is not a new development, its pace has increased with the advent of new technologies, especially in the area of telecommunications.…
- 453 Words
- 2 Pages
Satisfactory Essays -
Introduction:Globalisation is defined in the dictionary as "The growth to a global or widespread scale". However, under a more economic definition, the term "Globalisation" describes the increased mobility of goods, services, labour, technology and capital throughout the world.…
- 1454 Words
- 5 Pages
Better Essays -
Castells, M. (1999). Information Technology, Globalization and Social Development . Palais des Nations: United Nations Research Institute.…
- 1804 Words
- 8 Pages
Powerful Essays -
Though the process of globalisation existed in its nascent state for quite a long time, but there have been many changes in the globalisation process in the last two decades that makes it distinct from earlier existences. Rather than commodities or other products- information and capital have become the major thing to be traded in today’s global market. Technological changes now a days allow capital to move almost instantaneously. Earlier products and capital were more rooted to a place. Today, many of the things traded and produced in the global market, such as knowledge and computer technology, are extremely mobile or rootless. All this has been made available by a vast network of satellites orbiting at twenty-two thousand miles in space, underseas fibre optic cables, wired and wireless networks, cellular phones, palmtop and laptop wireless computers etc. Thanks to this electronic nerve system which spans the globe. The global knowledge economy, i.e. a technology driven global economy, manifests itself in many different ways, such as profound changes in industry and firm structure, the emergence of the online economy, the rising value of knowledge, low inflation and rapid social change. In all developed economies, industry structure and the activities are changing rapidly. Output and employment in knowledge-based and…
- 650 Words
- 3 Pages
Good Essays -
It is hard to define globalization and seems “easier to describe than to define” (Kiggundu, 2002:3). “Globalization has become, the most important economic, political, and cultural phenomenon of our time. Around the globe the integration of the world economy is not only reshaping business but also reordering the lives of individuals, creating new social classes, different jobs, unimaginable wealth, and, occasionally, wretched poverty and globalization is neither new nor complete” (United Nations Development Program, 1999:1). Globalization affects everyone across the globe but will most likely have a different affect on different people, therefore there are and used to be many various opinions on globalization and on its affects.…
- 1907 Words
- 8 Pages
Good Essays -
Many human beings have said technology had affected the cultures of all countries around the world. Historically people used to trade and sell goods, by shipping them, using water routes, but now technology is more advanced. For example, in marketing technology today it is more advanced in business jobs, technology helped poor countries in business to make them reach and buy goods from high quality markets. The information age has now developed technology that is helping countries politically to reach each other easily, instead of sending letters and messages, social media is playing a huge role in the Global Age. Countries are now more reachable then before, they can debate and talk politics to each other due to the information age. In 2010, 2011 disconnected Arab nations used technology only for special cases, after they topped most of the governments, the world started to realize how effective technology can be. Another reason why Global Age affected cultures of many nations, because of tablets, smartphones, Wi-Fi etc. People around the world are being socially effected by using smartphones as their daily…
- 675 Words
- 3 Pages
Good Essays -
References: Dahlman, C. (2014). Industrial Development for the 21st Century. Technology, globalization, and international competitiveness: Challenges for developing countries. Retrieved from http://www.un.org/esa/sustdev/publications/industrial_development/1_2.pdf…
- 1353 Words
- 1 Page
Good Essays -
Janet H. Muroyama (Editor), H. G. (1988). Globalisation of Technology: International Perspectives. Washington, D.C.: National Academy Press.…
- 1411 Words
- 6 Pages
Better Essays -
On the other hand, the process of globalization produces a profound impact not only on the development of countries but it also affects the development of companies. One of the major characteristic of the process of globalization on the corporate level is the emergence of multinational corporations that play the leading role in practically all industries and nowadays they are viewed as leading powers in the world economy. At any rate, it proves beyond a doubt that it is multinational corporations that, to a significant extent, define the economic development of many regions, the implementation of technological innovations, scientific researches and progress at large.…
- 2526 Words
- 8 Pages
Powerful Essays -
Over the last few decades, inventions in the field of science and technology enlarging the domain of the global economy. In other terms, rapid globalization driven by advancement in technology and liberalization, shifting the weight from national economies to a global economy, in which rapid and without barrier financial capital flows and production is internationalized between countries, since the 1990, globalization has become a reality and a key economic factor.…
- 2984 Words
- 12 Pages
Powerful Essays -
According to the definition of International Monetary Fund (IMF), globalization means the growing interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flow, and the widespread diffusion of technology (Far Eastern Economic Review, 2001). The growing interdependence of countries refers to countries with different developing levels taking their respective roles during globalization---developed countries being the protagonist while developing countries being the supporting parts. In other words, the role assignment means that most of the core processes in creating the high-end products are carried out in the developed country, like the research and development process (R&D), the marketing management process, core component producing process and so forth. Simultaneously, the developing countries are mainly involved in packaging, after-sale service providing and some other low-tech and high-cost processes.…
- 1081 Words
- 5 Pages
Good Essays -
The OECD economies are increasingly based on knowledge and information. Knowledge is now recognised as the driver of productivity and economic growth, leading to a new focus on the role of information, technology and learning in economic performance. The term “knowledge-based economy” stems from this fuller recognition of the place of knowledge and technology in modern OECD economies. OECD analysis is increasingly directed to understanding the dynamics of the knowledge-based economy and its relationship to traditional economics, as reflected in “new growth theory”. The growing codification of knowledge and its transmission through communications and computer networks has led to the emerging “information society”. The need for workers to acquire a range of skills and to continuously adapt these skills underlies the “learning economy”. The importance of knowledge and technology diffusion requires better understanding of knowledge networks and “national innovation systems”. Most importantly, new issues and questions are being raised regarding the implications of the knowledge-based economy for employment and the role of governments in the development and maintenance of the knowledge base. Identifying “best practices” for the knowledge-based economy is a focal point of OECD work in the field of science, technology and industry. This report discusses trends in the knowledge-based economy, the role of the science system and the development of knowledge-based indicators and statistics. It is excerpted from the 1996 Science, Technology and Industry Outlook, which is derestricted on the responsibility of the…
- 17645 Words
- 71 Pages
Good Essays