Globalization is a process where different regional economies and cultural aspects of life increasingly become more interdependent through import, export, transactions of goods and services, and human migration. Globalization has been achieved mainly due to the tremendous advancement in technology in the modern world. This age is being driven by technology which has resulted in the globalization of world markets and the systems of production.
A lot of change has occurred in various aspects of human life for example in people’s culture, religion, and in the business world. All this is due to information and technology that has resulted in a system where the world can now interact with one another quickly, easily, and cheaply. This effect has resulted in a change in the business world where the factors of production and marketing have changed to adapt to the global market.
Businesses and industries have now changed their mode of operation to ripe the benefits that globalization offers. These companies seek to benefit from advantages of technology like e-business which enable businesses not only to focus on national markets but can now access the international markets quickly and easily using modern technology. In addition, it has enabled the global village to understand the patterns and relationships of globally competitive businesses, lower costs of manufacturing and advertisement while increasing the quality and viability of their products to meet the benefits of the international markets. People can therefore communicate and enter into business contracts while they are thousands of miles away resulting in business expansion as their products demand increases to meet the increase in demand globally.
Due to technology, business capital flow, and foreign investments have increased thereby resulting in further production of goods and services that never existed in a particular market and can now be available to consumers. Also, technology has resulted in easier marketing of goods and services in foreign markets where initially the business had not ventured. Also, technology has enabled businesses to be able to effectively market their products in foreign states without necessarily being in the same country. This has been achieved through systems like websites where the customer can access a business profile and products they are producing and thereafter purchase it. There are also several technology-enhanced markets, for example, e-bay where a prospective client purchases a product, pays for it online and the transaction is finished.
Technology has made this easier as a business can effectively communicate with prospective consumers with technology-enhanced communication devices for example the internet. Globalization has also increased the production of goods and services as more opportunities are created through cross-border business transactions thereby making the countries more productive and effective in production. Therefore various countries have increased the quality and quantity of their products as the business can now use modern technology to make products that cater to the needs of various types of global markets.
Also, it has enhanced the speed of production thereby products can be produced and delivered within a short time. In addition, technology has enabled businesses to transverse very different markets in terms of culture, geographical and economics whereby businesses can learn the cultures of a different country by getting information from electronic sources and produce and market themselves in conformity with the diversity of the country. On the other hand, consumers are now able to get reliable goods and services that are not available in their national markets from reliable international markets.
Since technology has also resulted in increased income opportunities for different types of people around the world as different economic opportunities have availed themselves, businesses have been forced to increase their resources to get to their international targets. Therefore, through information from sources like the internet, a person can identify the needs of certain people in a given country and fulfill them by producing the goods and services that they need. In addition, put up with the increased demand and opportunities availed due to globalization; the traditional forms of production have drastically been changed to more efficient and modern forms of production that embrace technology. Hence, the businesses have been able to match production to the needs of consumers.
In addition, it has enabled countries to relocate their businesses centers of production to countries that are less costly in factors of production thereby enabling them to cut expenses of production, be near their intended market and increase their profits. Thus due to technology, factors of production can easily be transferred from one country to another without affecting the business by loss of information or production techniques. Also, businesses can now pool resources from different countries and factor them all together whereby through technology, raw materials can be outsourced and used in the production of goods and services for example one can find electronics that bear a brand name from a low-cost country like China while other components are outsourced from another country like Malaysia.
Due to advanced technology manufactures’ can now be able to cut down on administrative expenses like computers and other technology gadgets can now function automatically thus a reduction in business expenses. It has also enabled a uniform form of marketing whereby a business can penetrate the same cultural regions using the same means of advertisements that reflect their cultural beliefs through the use of online marketing techniques for example emails and other social websites. Thus a reduction in marketing costs as the businesses change from the expensive traditional methods like television advertisements.
In addition, the modern forms of marketing have resulted in a relationship be created whereby the business maintains a relationship with the consumers. Thus whenever a new product is produced, the consumers will be notified immediately and cheaply through emails and mobile technology. This has been enhanced due to the spread of digital technologies around the globe whereby all the people can access the internet and receive views, and send information to other people thus marketers can personally reach their prospective customers.
The technology has also enabled a sophisticated and efficient method of communication network which has facilitated cross border exchange of ideas and resources globally. This has created an efficient channel for businesses and consumers to exchange information through information technology. In addition, IT has enabled marketers to gather important market analysis by various internet-enabled information gathering techniques, for example, emails, websites, and electronic bulletin boards. Thus they can effectively market their products creating maximum demand for their products. In addition, technology has increased the speed, security, and reliability of communication by the use of systems like microprocessors and fiber optics. Furthermore, this advancement in technology has reduced the costs of communication between parties as the new methods are way cheaper compared to the traditional methods of communication.
On the other hand, globalization has brought some negative effects in the world, especially to the developing and less developed countries. Globalization has led to the dumping of goods by the developed countries to low-end markets. This distorts the local markets by bringing in sub-standard goods which are sold at a lesser price than their real value. Globalization undermines the sovereignty of states especially the underdeveloped as multi-national companies usually influence the policies of those countries.
However, technology has increased the production of goods and services by businesses as globalization creates new markets opportunities to dispose of the goods. Technology has also resulted in the surplus production of goods and services to meet the demands of the large and growing global markets. In addition development in science and technology has enabled businesses to overcome geographical barriers and open up regions for trade. Technology has made it possible for a business to produce more products that were initially impossible or difficult to produce therefore offer a variety of products in the market, for instance through biotechnology and biometrics. Globalization has helped to provide markets for the finished goods and also the transfer of technology from one country to another. Also, this advancement in technology has made it possible for a business to overcome various hurdles that prevented the expansion of their business due to lack of resources or machinery to do so.
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