research paper

Globalization

Student’s Name: Venkata Rama Raja Ravi Tej Addanki

Student ID: 002837770

Professor : Dr. Donnie Grimes

Globalization

Globalization refers to the interaction between people or organizations on an international or global scale. Information technology has played a significant role with respect to globalization in the recent past. The introduction of computers and the internet has increased the rate at which people and organizations from across the world interact. This has made globalization a reality in the sense that people and organizations from different ends of the world can easily communicate and exchange ideas. From a business point of view, globalization has an impact on the global economy because businesses take advantage of this concept to expand their operations to new places across the globe. They use information technology to research potential areas where they establish new branches. This has enabled them to boost the global economy.

Globalization pertains to information technology and the global economy because the concepts go hand in hand. Information technology has increased the overall efficiency and effectiveness of the global economy through the concept of globalization. Businesses that operate on a global perspective have an impact on the condition of the global economy and this depends on how they use information technology. It is important for them to understand what they need to achieve so as to utilize the right form of information technology to enable them to have a better impact on the global economy. With the right use of information technology, international businesses will make good use of the concept of globalization and understand how their counterparts from other parts of the world are working. This will enable them to adjust their strategies so that they are also successful and having a positive impact on the global economy.

The Impact of Globalization

Globalization has a notable impact on the global economy through the use of information technology. As aforementioned, it is the responsibility of global businesses to utilize information technology properly to enjoy the positive impact of globalization, especially on the global economy. This basically implies that there are both positive and negative impacts of globalization as a concept of information technology and the global economy.

The Positive Impact

Foreign Direct Investment

Globalization has increased the rate of foreign direct investments. Businesses are using information technology to study their new markets and to know what to offer. Globalization has also helped in boosting the concept of technology transfer as well as industrial restructuring. This has a significant impact on global economies because businesses around the world are improving their own economic conditions. In simple terms, globalization has enabled businesses to invest in foreign markets across the world thereby creating an impact on the global economy. The use of information technology is a key pillar in foreign direct investment and the growth of the global economy.

Technological Innovation

Globalization has also led to significant growth in terms of technological innovation. The concept has made it possible for individuals and organizations to share knowledge from around the world thereby being more creative and innovative. This has allowed businesses to come up with creative technologies that enable them to boost their efficiency and effectiveness. For example, the concept of artificial intelligence is a result of globalization and manufacturers are using it to boost the global economy by cutting down manufacturing costs and increasing their revenues.

Economies of Scale

The concept of globalization has enabled multinational corporations to enjoy the economies of scale because they make orders in bulk. It supports economic growth because businesses cut down on costs especially in transactions that involve goods in large volumes. The concept of information technology comes in play as businesses use the internet to make orders from their partners from other parts of the world. Basically, orders are placed online and supplies are made in large volumes that enable businesses to realize economies of scale. This goes ahead to have an impact on the global economy.

The Negative Impact

Despite all the benefits that come along with globalization and the global economy, there is also a negative impact especially with respect to small businesses that compete with multinational corporations. The small businesses are negatively affected because they do not have the financial muscle and other resources that can enable them to match their multinational counterparts. The concept of globalization is disadvantageous to them because international businesses have also invaded local markets.

Globalization is an interesting topic for research because it pertains to both information technology and the global economy. It is a wide topic that requires deeper research to understand how it really affects the global economy from the perspective of information technology. This will create a better understanding

References

Milanovic, B. (2016). Global Inequality: A New Approach for the Age of Globalization. Cambridge: Harvard University Press.

Morady, F. and Kapucu, H. (2017). Development and Growth: Economic Impacts of Globalization. London: IJOPEC Publication.

O’Sullivan, M. (2019). The Levelling: What Next After Globalization? New York: PublicAffairs.