4.5.1. Technology

Rapid improvement in technology has been one major factor that has stimulated the globalisation process. For instance, the past fifty years have seen several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs.

Over the last fifty years, technological advancements in transportation have significantly enhanced globalisation. Improvements in shipping methods, airplane efficiency, and the overall logistics infrastructure have enabled quicker delivery of goods. For example, shipping containers can now be efficiently loaded onto ships, planes, and trucks, which speeds up the movement of products worldwide. This means businesses can send their products to international markets much more quickly and at a lower expense than before.

Consider the scenario of ordering a book online from a global retailer. Thanks to advancements in transportation, the book can be shipped to your location within a few days. Earlier, such shipments could take weeks or even months, hampering business operations and international trade.

The result of greater foreign investment and greater foreign trade has been greater integration of production and markets across countries. Globalisation is this process of rapid integration or interconnection between countries.

Globalisation leads to the integration of production and markets across different countries. This means that products are no longer just made and sold within a single country; instead, components can be manufactured in one country, assembled in another, and sold globally. For instance, a car might have parts made in several different countries, demonstrating how interconnected and interdependent global markets have become.

Imagine a smartphone that has parts sourced from various countries. The screen could be produced in South Korea, the processor in the USA, and the assembly might happen in China. This illustrates how production is integrated across borders, making it easier for companies to optimize costs and efficiency.

MNCs are playing a major role in the globalisation process. More and more goods and services, investments and technology are moving between countries. Most regions of the world are in closer contact with each other than a few decades back.

Multinational Corporations (MNCs) are crucial in facilitating globalisation as they operate in multiple countries and manage to transfer not just goods, but also services, investments, and technology. They help link economies by establishing production and markets in various locations, leveraging local advantages like cheap labor or natural resources to maximize profits. This growing presence of MNCs has led to increased economic interdependence among nations.

Think about a well-known beverage company that sells its products worldwide. This company not only operates factories in various countries but also adapts its products to local preferences. Such adaptations and operations help bridge the gaps between different markets while contributing to a more interconnected world economy.

Besides the movements of goods, services, investments and technology, there is one more way in which the countries can be connected. This is through the movement of people between countries. People usually move from one country to another in search of better income, better jobs or better education.

Information Technology (IT) plays a significant role in globalisation by enabling faster communication and interaction among people across borders. The internet allows for immediate connectivity, e-commerce, and access to information, facilitating businesses and individuals to cross international lines more easily than before. While the movement of goods is essential, the movement of skilled professionals and workers enhances the integration of economies worldwide.

Consider a software engineer who moves from India to the United States for a better job opportunity. The engineer's skills contribute to the tech industry in the U.S., while remittances sent back home can help improve the local economy. This showcases how the movement of skilled workers enhances connections between different countries.

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