What is Globalization?
Globalization is when the world comes together with the result of the expansion of national and international cultural, political and economic activities. It is the integration and movement of people worldwide. Globalization has political, social and cultural impacts. Technology is instrumental in the connection of buying and selling products worldwide, thus bringing globalization. Globalization has become the technical term of the 1990s. National economies are growing more integrated as cross-border trade increases. Consumers are now purchasing more foreign goods, savers are investing nationally and internationally, and companies are operating across borders.
Technology Drives Globalization
Technologies have increased the move toward globalization, and it drives globalization. It is moving us toward a model called “production-at-the-point-of-consumption” of energy, food, clothing, thereby reducing the consumption of the global supply chain. The reduction of reliance on the worldwide supply chain can be a sign of peak globalization. It may be the pathway to preserve a portion of globalization that are positive such as empowering individuals, strengthening communities, enhancing environmental and economic stability and global interconnectedness. At the same time, hopefully, some of the negative aspects of globalization may be reduced.
The costs to start a business has dropped rapidly as companies no longer require a massive investment in software and servers. They can rely on software and cloud-based computing power, thereby reducing costs and labour requirements. Today, a business can access the same tool as large corporations. For example, companies large or small can utilize LX Electronics Design to perform high volumes of applications, Cloud API and security.
Exponential technologies have made it possible to sharply reduced the “cost of entry” for creating businesses because these technologies are available to almost anyone. They have been subject to “Moore’s Law” of exponential growth in exponential decline in cost and capacity. Technology has driven the rapid reduction in costs and a rapid increase in processing power of digital technologies.
The digital device that has been the most crucial is the microprocessor, which collections of tiny circuits found in personal computers and that are embedded in cars, video games, mobile devices, refrigerators and more. If you apply “Moore’s Law”, to the microprocessor, power generated by the microprocessor has doubled the amount it produced two years ago, and the trend continues year after year.
The internet, smartphones, and GPS are all available at a fraction of the cost. Platforms such as Apple can provide services, connectivity and business tools. The access to smartphone alone offers numerous services such as free global video calls, search, free uploads to social network sites and free access to comprehensive knowledge. Companies also have access to apps for almost any purpose, digital photography, translation to the cloud and artificial intelligence such as Alexa, Siri and Geolocation. There many capabilities that are available now that were not available years ago.
The Effects of Globalization
The many facets of globalization have help businesses to design their supply chains. Besides, it may have disproportionately benefited Western corporations and enhanced wealth disparity as it unleashes technology, which in turn drives firms to plan production and sales on a global basis. Globalization is not a new concept, and it has also been a critical driver of growth worldwide so much so that we live in a world where poverty has been decreased. In just a few generations, it completely changed the world economy. Globalization is a substantial consequence of the New World system.
Globalization has provided businesses with opportunities to increase efficiencies and decrease costs of their business functions. It is not a phenomenon that only existed in huge multinational companies but is utilized by small and medium-sized companies just as much. Technical change prompts continual economies in the usage of unskilled labour. Specifically, among the most prevalent changes is in information technology, which ranges from mobile phones to the web, where people can connect from various localities around the world and access all types.