Contributions of technological developments in globalization


As a citizen of a modern and developing world and in relation to the subject of my studies, I have followed closely the progress of developments in our country and in general, global level. These developments are social, political, institutional and other species, but the main and most intense are the developments in technology which, as we will see then form the basis of all other changes and developments.

For this reason I chose to do a coursework with the subject of the contribution of technological developments in the globalization process so as to obtain a more comprehensive view on the matter so that I can make some key show of change of the technology sector and then show how they managed an important role in the process of globalization.

Before addressing in detail above, I have to give the basic definitions on the main issue, which are the basis of the issue being studied in this work is "technology" and "globalization" in order to become more understand for the reader, the subject and the matter develop.

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Initially I will give a general definition of the term of technology. According to Longman "technology is the general use of scientific knowledge for practical purposes, usually seen in actual machines or in industry". (Longman, 2001:148)

A definition of the phenomenon of globalization, in order that reports Mr. Georgios Kottis in the book "Modern Finances for all" is: "Globalization is a process via which, progressively, the bisector limits between the national economies slack with way that allows continuously the free trading of products, productive factors and pecuniary capital between the various states." (Kottis G. and Kotti A. 2002:259)

From the definitions of these terms seem to be connected directly to a depended on another. That is the process of globalization will surely depend on the evolution of technology since the transmission and spread of economic policies and other elements of a spread to other state with the use of tools such as a phone, ships, aircrafts, computers and other alike.

Let's see how exactly the evolution of technology helps in the development of the phenomenon of globalization, how and what exactly are the reasons for this result.

Certainly the evolution of technology in industrial level observed after the Second World War, was one of the key factors that led to the phenomenon of globalization, after the discovery of new means of transport such as planes and ships can be moved in any area people and products. But the development of expertise in such matters made such means faster, bigger and increased in a few years of their number.

This means that the evolution of technology, "technology of the third industrial revolution", which includes lasers, computers and biotechnology ( Gilpin. 1987:402), creating three key elements which help having to work assumes a more extended market.

As mentioned above, the developments in the industry played an important role in the development of globalization as we can now communicate and exchange information on any subject we are concerned with very simple and easy way with a very low cost. (Deppe, 1995)

An example to understand the contribution of the development of this industry is that mobile phones and services offered by computers and the internet. Using now our mobile phones we can talk to anyone we want form anywhere if we are at any point if he of if we want to send a document or other information to someone, we can use the e-mail service and easily and with virtually no cost to do it, even marketing products and services over the internet anywhere, which has positive effects on the development process of globalization.

Based on the rapid development of technology that countries with strong economies are trying to become even stronger and so are extroverted, that refuges in foreign markets outside their borders. The main reason for creating this phenomenon is the creation of competitive advantage so that countries can benefit from exchanging goods and services between them. This is because if a country produces a product with expensive production costs therefore expensive labor forces in Germany, refuges abroad, where it can produce the same product more cheaply and to market on there, have higher profits with minimal production costs. Basis of theory of comparative advantage the same can be done if the other country sees the same way it can improve its economic situation. (Pournarakis, 1981)

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An example that helps us to understand the contribution of technological tools and capabilities that allow companies to expand abroad in conjunction with the comparative advantage is to export olive oil Spain and countries such as West Africa and Chile, which odder lower production cost and higher sales of oil in products derived from it. (

Therefore that if the evolution of the technology encourages countries to develop economic activity in foreign markets after they provide easily, rapidly and inexpensive transportation and movement of goods helps the market to a national level to get a new form called ''global the market''.

So we are now able to talk about a new form of trade,' World Trade'', a term which is based on the liberalization of international trade and illustrates the economic globalization and generally the contribution of technology in conjunction with the trade, growth of phenomenon of globalization.(Kenen,1194)

At a single market, therefore, we observe the existence of new forms of global competition among businesses. Technology here plays an important role because of its development some counties could afford to create new innovative production systems, such as the use of automatic technology that does construct new innovative products in shorter time and with lower manufacturing cost and distribution in any foreign market (Pelagidis, 1994).

This means that since most big companies have acquired this power they have begun to provide to several markets abroad. This has created competition in between companies often seek profits in the same market and one tries to dominate the other.

The quest that comes from competition between firms brings them to a point by using new technological tools developed to move into other markets. This process is an important factor as well in the development of globalization.

So, according to the procedure above ,the openness that multinational companies purchase, meaning the trade in services and in goods abroad, purchase of buildings locally whether establishment is wanted, purchase equipment ,purchase and sale of know-how, labour and even bank lending in the country will operate, we understand that caused major transportation funds to achieve the objective of companies. Therefore, we recommend investing abroad, of course, to be feasible, using allay the technological achievements for the reasons mentioned above.

Two examples of the dominant role of business in China, a country with huge foreign exchange reserves, can help us to understand the help offered by technology to move the business to foreign investment.

The first is the financial support of Spain in China. In recent months, Spain is afraid of the consequences of the European crisis, while China has a high level of technology in transport ,computing and communications is to stay as far as it can from the crisis consequenses.Statements in newspapers and magazines talk about Chinese companies investing in Spain about 9,000,000,000,000 dollars.

In this way Spanish banks will breathe, since the new investment will bring large deposits of funds and will get the Spanish financial system back in track. ( ).

The second example relates to China and our country. In addition to the stores sell apparel from China as we already see in every region it of the country and even in the most remote islands, China last year decided to expand to the maritime sector at Greece's main port Piraeus with the Cosco Company. This movement aims to product transfer to the Balkans, to the Mediterranean and the Black Sea, as this is allowed by the geographic location of Piraeus' port. (

As we can see from both examples that I mentioned above China's entrepreneurs fails for the three main obstacles to develop more entrepreneurs in remote areas. The distance, the time and transport costs and invest anywhere globally; confident enough that they will have the benefit they aim for.

Apart from direct investments in foreign countries, which are a key element of globalization and due to technology development and creating economies of scale which is an incentive for expansion of trade and thus help them to the development of globalization.

This is because principle is the basis of another factor that I have analyzed in the previous paragraph, the comparative advantage that is part of the development process of globalization and the evolution in technology in production processes.

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Apart from this though, the analysis of the theory of economies of scale that occurs in the international trade can be argued whether it gives incentive to entrepreneurs to develop business abroad, in countries where they can find cheaper labour and comparative advantage in goods and services that they want to market thus be transported to other countries where they have the ability to achieve the maximum possible profit.

Also on the contribution of economies of scale in the development of international Commerce and of course the process of globalization will borrow a catchphrase borrowed from Paul Krougman and Maurice Obstefeld of their book ''International Economics'' which mentions ''where there are economies of scale, a doubling of inputs in a sector will more than double the output of the industry''. (Krougman and Obstfeld, 1994:180)

This also means that if a trader observes that in a foreign market creates economies of scale and uses modern technology in the production process is to try to significally increase its profits by being active in this market.

According to all the above and having read various articles and papers on globalization and technological developments managed to form an integrate view on these issues and the dependence of one another. So I can say that confidence that all now are based on technology but depends on it and it's evolution since it has reached a point where in evolves in such a way that gives us the feeling that it is the tool that makes our lives easier. This applies to ordinary citizens and the business worldwide and politicians and the states and governments and any industry involve with technology.

I believe that the evolution of technology has been and still is driven by major powers as America, Germany and Chine so as to eliminate any limit that is hold at the states and their economies in order to create globalization process and to ultimately be a single planet that could be monitored and guided by certain economic, political and social scope.


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