Full version Globalization And Technology

Globalization And Technology

This print version free essay Globalization And Technology.

Category: Business

Autor: reviewessays 16 November 2010

Words: 2128 | Pages: 9

GLOBALIZATION AND TECHNOLOGY

I think that if we want to talk about globalization first of all we must define what the globalization is. Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world.

When i make some resarches on in the internet i find two different ideas about globalization and technology first one says that: Globalization and technological innovation are interdependent processes. Globalization has a fundamental influence on the creation and diffusion of technology which, in turn, affects the interdependence of multinational corporations and where they locate their activities. In this book Rajneesh Narula examines the international aspect of this interdependence at two levels: first, between sites, by examining the role of cross-border initiatives in the innovation process; second, between corporate entities, by studying the dynamics of inter-firm collaboration in research and development.

But , the second idea which i find it says that: Technology and globalization go hand-in-hand. Globalization unleashes technology, which in turn drives firms to plan production and sales on a global basis. Technology changes the work we do and in nearly all cases, the jobs created by it demand more education and training. It also changes the way business operates by transforming relationships between suppliers, producers, retailers and customers.

In my opinion the second idea is more rationalist because i find several resons to say it is true. Now i want to talk about this reasons and also give some examples about them.

Globalization means to make worldwide in scope or application, and the globalization of trade means freer and more intense worldwide trade across national borders. Technology helps to make globalization possible. Because computers can be interlinked across companies, countries and continents, information is no longer weighed down by geography or time. For example;

With globalization, Canada faces stiff competition for international markets. Increased competition has resulted from:

• the new market-based economies of developing and former communist countries;

• the introduction of new products and processes;

• more efficient use of old materials; and

• innovations in information technology.

These forces have transformed markets that were once regarded as a reliable source of earnings. For example, in the past, Canada prospered from its natural resources. But as resources and world prices have declined, the global economy has challenged this advantage by demanding more innovation, higher product quality and increased productivity. It is gratifying to note, however, that firms in Canada's resource sector that have upgraded their products, used technology skillfully, sought niche markets and revitalized their work forces have not only survived, but prospered.

Even consumers have begun to globalize. With the relatively strong dollar of the late 1980s, Canadian consumers became more conscious of their shopping options and a greater share of their spending took place outside the country. Increased cross-border shopping forced Canadian retailers to offer longer business hours, higher quality products and better and friendlier service. Even though cross border shopping has declined with the value of the dollar, the arrival of U.S. based retailing giants, such as Wal-Mart, is continuing to force dramatic restructuring and shakeout in Canadian retailing.

Globalization Means New Markets

Canada is one of the world's main trading nations. Canada's wealth has been largely built on trade, which accounts for more than half of the gross domestic product, or almost triple the proportion in the United States.

Surprisingly, few Canadian firms engage directly in exporting. In 1992, only about 25 percent of manufacturers made direct export sales, five firms accounted for 24 percent of all our exports, and 50 firms accounted for over 50 percent.

Free Trade

Free trade has been a hotly contested issue. Nevertheless, it is generally agreed that free trade in some form or another is inevitable. Sectors that have declined as a result of the Canada B U.S. Free Trade Agreement (FT) were sunset industries such as clothing, furniture and various household products. These sectors were vulnerable over the long term regardless of any new trade agreements. And, the conclusion

Canadian firms have been successful in the United States; exports and merchandise trade balances have profited from the North American Free Trade Agreement (NAFTA). Trade success elsewhere has been less dramatic. For example, between 1983 and 1992, Asia accounted for 20 percent of the increase in U.S. exports, but only six percent of the increase in Canadian exports. And, although Canada has traditionally had a merchandise trade surplus, this surplus has been increasingly over-overwhelmed in recent years by a soaring non-merchandise (services) trade deficit. Rapidly rising interest payments on the foreign-held debt and a large deterioration in the travel/ tourism account are the main causes.

There are some ways Canada may benefit from expanding global markets. For example, infrastructure projects are always in progress in any rapidly developing country, so opportunities exist in the design and construction of electric power systems, water and waste facilities, telecommunications, subway systems and highways. Environmental technology will be needed in all developing countries before too long as will more sophisticated financial services. The emerging middle classes in Asia and Latin America have more money to buy consumer products.

Implications of Globalization

According to a survey of 200 exporters by the Canadian Labour Market and Productivity Centre, many Canadian firms report hiring difficulties - most severe in the areas of professional and sales staff. Close to half of the respondents reported that such difficulties have a negative impact on production and exports. Half of the respondents reported unfilled vacancies due to qualification problems mainly in export management, computers and technical skills. To a lesser degree, marketing, languages and literacy created problems in filling vacancies.

The trend to global marketing and the higher skill levels demanded of workers in export industries have created a labour force gap. Practitioners might guide those interested in entrepreneurial occupations to specialize in:

• global entrepreneurship;

• international marketing;

• international trade finance;

• international physical distribution;

• international trade research;

• legal aspects of international trade;

• international trade management; and

• the North American and other trade agreements.

Note, however, that the above are all areas where higher levels of education and specialization are needed in order to succeed. Opportunities for lower-skilled workers are available in small companies that provide services to firms in the export sector such as maintenance, marketing or computer services.

On the one hand, locations and corporations are increasingly interdependent through supranational organizations, regional integration, strategic alliances, and the flow of investments, technologies, ideas and people. The boundaries of both corporations and states are increasingly porous and imprecise, because businesses use alliances and outsourcing, and countries are rarely technologically self-sufficient. On the other hand, locations remain distinct and idiosyncratic, with innovation systems largely nationally bound. Knowledge creation suffers from ‘inertia’ and, because of the systemic nature of learning, continues to be concentrated in a few locations and firms.

Two rapidly growing trends globalization and technological innovation are having an enormous impact on the very fabric of the way business is conducted. As each reinforces the other technology enabling firms within an industry to capture economies of scale and scope by going global; global firms relying on technological innovation to enhance their capabilities continuous strategic and organizational change across all industries will result. This dynamic environment motivated the research documented in Globalization, Technology, and Competition, which explores the dramatic influences of these two important forces on the structure of industries, the strategies of firms competing in these industries, and the organizational forms needed to support the new creative strategies of these firms.

Focusing on information technology and telecommunications, the contributors address how innovations in these technologies are stirring firms and industries to react. This restructuring is pervasive, changing forever the ways in which people work together, suggesting substantially different organizations to support their efforts, and shifting the basis of the strategies pursued by firms in these industries to new concepts of competitive advantage.

The distinguished contributors to this volume include executives from leading companies that have built integrated computer and telecommunications networks for global competition; executives from the companies providing computers, telecommunications, and software to enable global competition; and academics and other professionals who are studying these industries and their confluence.

Survival in the new global business market calls for improved productivity and increased competition. Indeed, firms that have upgraded their products, used technology skillfully and sought niche markets have not only survived, but prospered. However, the down side of increased productivity is the elimination of many jobs in manufacturing, transportation and other high-paying industries.

Just as globalization presents Canadians with both challenges and opportunities, so too does technology. Ever since the beginning of the first industrial revolution in the 18th century, the introduction of new technologies has meant both the transfer of jobs from one sector to another (from agricultural labour to the production of farming equipment, for example) and the ultimate creation of more jobs throughout society.

• The service sector is the largest generator of jobs and many of the jobs created in this sector do not demand high-level technical skills.

• Growing manufacturing companies in high-tech sectors also need workers in clerical, finance, shipping/warehousing, sales and marketing fields.

Innovations in Technology:

Introduction to the Information Era

While globalization and the other trends discussed in this chapter will have a huge impact on workers and the labour market, the changes will be small compared to the radical changes brought about by the spread of information technology. Job forecasters believe that those who can figure out how the revolution in information technology will affect hiring practices in their field, will be in a position to take advantage of many opportunities.

There is an explosion of knowledge that is becoming more and more available to the public due to technological advances, and it is changing the power base and the way people tackle their problems. This includes career decision making.

Toffler traces the spread of knowledge which was once only accessible to the few, thus supporting a pyramid structure with power resting at the top. He talks of changes in the behaviour and demands of the general population as the information became more accessible to them.

The Information Industry

An entire industry, the information industry, has grown out of the ability to access and the demand to acquire information instantaneously. Data-base companies, such as Canadian InfoMart, International Data Corporation (IDC), Northern Business Information (NBI) and Dialog, provide articles and reports, topics covered in the newspapers, bibliographies, etc., through a computer or telephone inquiry service. Some information sellers are very specialized such as those that cater to the medical field, architecture, law and even to counsellors. data-base company as small and specialized as a computerized list of boats for sale across Canada can succeed because of its ability to reach the equally small, specific target audience.

This new technology has implications for all of those involved: the clients, the counsellor and the employers posting openings. For example:

• Clients have more up-to-date information as well as more responsibility for determining for themselves the most appropriate jobs to apply for.

• Fewer CEC counsellors are needed, and the counsellor jobs that remain demand higher skill levels because the only clients receiving counselling are those most at risk and in need of direct intervention.

• Employers must take on more of the screening process themselves.

For manufacturing companies, the speedy access to massive amounts of information has bestowed power to increase quality and quantity of products, to receive orders from around the world and to reply the same day, to use billing systems that co-ordinate orders and invoices for multi-branched worldwide companies.

Research and development companies can receive data from the source before it is even published, making vital information available instantaneously. The general public receives information from media that affects spending habits, charity choices, political decisions and social opinions.

Expanding high technology has had a significant impact on virtually all industries. The changing nature of work is evident in the automation changes in the processes of design, manufacturing and quality control, in offices and in transportation, communications, health care and retail services. Tradespersons are finding that the new fabrication materials and computer-based processes are increasing the complexity of their trades. For example, machinists now need computer training to use computerized numeric control (CNC) equipment in manufacturing.

As technology advances, new, faster, better goods and services are available and in demand. To fulfill consumer demand, there is another shift in the labour market toward workers who are trained in the skills that can provide such goods and services. Although a field may suddenly need people trained in new methods, the technology itself may lessen the number of workers needed in that field.