How Technology Helps in Globalization

What’s one thing that businesses can do to increase their profits and at the same time reduce their operational costs? The answer is going global. Technology helps businesses to look for ways to reduce their operational costs. One such way is outsourcing. It helps the company to find a foreign workforce who are willing to carry out business operations at lower pay. Technology has spread across the border and has increased productivity in every sector. It has reduced the occurrence of potential risks and helped us to avoid mistakes. We have seen growth in the economy with advancements in technology.

Role of Technology in Globalization

Out of every benefit, technology has provided to us, one benefit that has changed our world is building connections. Technology has provided us with the means to connect with almost anyone across the globe.

In fact, we are so focused on making advancements that we are trying to contact species on other planets. So, you see how technology facilitates communication across the globe. Now let’s look at the role of technology in globalization.

Keeps Us Informed

Living in the 21^st century has its own advantages. We don’t have to wait long to get information. But, our past generation had to wait for days. By the time they received information, it was either irrelevant or too late to act upon. Thanks to technology, we never had to experience such situations. We have the internet that gives us information about any part of the world and the best part is you get to know it right away.

There are incidents where there are two sides to it. Technology allows both parties to present their sides using social networking sites and lets the world decide who they want to choose. You will see examples where people have used social media to expand their businesses across the globe. They were able to have a global impact using technology.

Eliminate Barrier

Previously, only large-scale businesses were able to conduct international business. They had the right contacts and funding that they needed to function in the global market. But, now you don’t have to be a part of large groups to do business globally. You have technology that helps you to set up your business online, reach out to people through social media and advertising, and deliver your products or services.

Handling eCommerce has become so much simpler with the help of technology. At every step, technology is used to carry out business activities. Some software helps to track the shipments and ensure they are delivered to the customers on time. This has increased global trade.

Establishment of the Global Institute

In important matters, it is necessary to keep track of activities and maintain records. Consider the healthcare sector, which organization is responsible for global public health? No doubt, it’s the World Health Organization. These organizations use technology to fulfill their responsibilities. 

Technology helps global institutes to discover new ways to carry out current tasks. They find innovative solutions to our existing problems. The benefit of being global is that they receive input from people all over the world. They work on it and develop solutions that work globally.

Impact of Technology on Globalization

We learned about the role of technology in globalization. Now, let’s look at the technology that is having an impact on globalization.

Online Platforms

Technology has created an online platform where people can trade all around the globe. They can expand their businesses globally with little investment. All you need is the internet, and you are all set to reach out to your global audience. It allows you to reduce the operational cost and at the same time improve your services.

There is no need to set up a physical workplace. Using technology, you can run the business from anywhere in the world. You can create a global brand. You can produce goods at one location and market them using online platforms.

Artificial Intelligence

Artificial Intelligence can increase the productivity of businesses and this will have a direct impact on their growth. Some nations have taken steps towards implementing AI on a wider scale while some nations are still skeptical about it. AI will bring automation and will result in job loss. So, some nations are preparing themselves before getting involved in it. 

But, we cannot deny the fact that AI is the future. We will experience international business growth with the use of this technology. We will have more opportunities for global trade. It also helps to study patterns and make accurate predictions. Just imagine, if AI can let you know what your customers want, then how easy it would be to run businesses.

Blockchain

During COVID-19 we were forced to think of alternative ways to carry out normal tasks. For most of the things, we have switched to online mode. Here’s where technology like blockchain provides economic benefits. The sectors that will get more benefit from this technology across the globe are health care and education. 

Blockchain technology helps to track products which has become a very basic requirement. Since we are going global, now more than ever we need to keep an eye on business activities. This technology is used for tracing the origin of the products. So that even if business operations are conducted across the globe, ethical business practices are still followed.

Examples Of Technological Globalization

Let us look at a few examples of technological globalization and what it entails:

1. The rise of Tech MNCs

Globalization has paved the way for multinational corporations for a long time, but with technology, IT firms started to become bigger and bigger. In fact, companies like Amazon, Apple, Google, and Microsoft, are some of the most valued firms on the planet. And it has only become possible due to the proliferation of technology on a global scale.

2. Online banking

Technological globalization has not only made ways for newer companies to rise, it has also changed commerce and finance. In fact, one great example of the globalization of technology is none other than e-banking. It allows us to transact from the convenience of our homes. Deposits and withdrawals have also become much simpler with the adaptation of technology.

3. Manufacturing automation

Another thing that seems to be common across the globe is the introduction of automated machines and robots in the manufacturing sector, resulting in cheaper goods and an increased supply.

Only decades ago, we thought TVs and mobile phones were the epitome of luxury and wealth, and today, they are as common as anything else. It is in part due to technological advancements, for sure, but also because these technologies have been adopted on a global scale, driving demand and, as a result, supply.

4. A Global Media

The media no longer has borders. Since we can get and spread information in literal seconds, the scope of media and news agencies has become too large. News segments that were once national or even regional can now be watched from another part of the world, and that too in real-time broadcasting.

Taking a closer look, we can also see how social media plays a huge part in it and how traditional media is shifting towards a more modern setting.

Advantages of Globalization of Tech

The globalization of technology has some positive impacts, which are as follows:

• Digital technologies can enhance international trade by making customs more efficient and providing transportation, logistics, and transactional solutions. 
• It has made currency conversion much easier.
• Automated trade is set to create a global economy by allowing more efficient market development, less paperwork, and robust supply chain management.
• It has helped with domestic production in developing countries, paving the way for cheaper and better-quality products.
• Furthermore, it allows more and more businesses to grow and scale much faster on a global level.
• It also helps with poverty levels across the globe.
• The globalization of technologies also opens the door for better innovation and newer ideas

Disadvantages of Globalization of Tech

And on the downside, we have also mentioned a few disadvantages, such as:

• The globalization of technology has done nothing for the existing digital divide, as affluent people get access to better technology in comparison to those who are struggling. Yes, it spreads fast across the globe, but it also increases the divide.
• It has actively contributed to job loss and replacement. In fact, many jobs have already become obsolete and completely taken over by technology. 
• Globalization in itself was deemed somewhat bad when it came to protecting different cultures and their uniqueness. With technology, the world is getting homogenized at a much faster rate, allowing some cultures to influence others.
• It has also allowed the rise of new problems, such as fake news and the spread of misinformation. 

For a more detailed and general list, you can check out the advantages and disadvantages of globalization.

Contributions of Technology to Globalization

The following table lists various aspects of globalization and how technology has contributed:

Aspect	Contribution
Communication	Real-time communication, cost-effective international calls, overall integration
Trade	E-commerce, digital payment systems, global market, streamlined supply chain management, international trade
Education	Global institutes, online education, virtual field trips, remote learning, webinars
Cultural Exchange	Digital content from all over the world, online communities, sharing ideas
Transportation	E-bookings, cheaper flights, GPS, online maps
Awareness	Social media as a medium for news, different perspectives on a topic, debates, and voices for the marginalized
Political and Social movements	More freedom of speech, online campaigns, a global audience, and better emergency response on a global scale

Conclusion

In this article, we learned how technology has accelerated globalization. Think about it, if we didn’t have the technology how we would know about what people around the globe have to offer? We should be glad that we have technology that has eliminated barriers and allowed us to find our own ways and reach out to many people.

We can see the impact of technology in both the private and public sectors. These sectors are using technology to eliminate manual repetitive tasks and replace them with automation to gain more profits. Technology is the very foundation of the global market. Over time, we will make advancements in technology and change the way we trade globally.