Technology and globalisation

Globalisation:

1. Integration and interdependence

2. Through the internet

Free trade- liberalisation- to promote trade between countries

Technology is:

- The methodological application of scientific knowledge to practical purposes.

Development and environment has a negative/ inverse relationship.

Japan is facing a GDP drop due to it’s aging population, their life span is getting longer, but their
fertility rates are getting lower. Thus they are using TECHNOLOGY in order to help solve this
problem.- bio sciences

Technology:

- improves processes.

- improve on the product itself (quality, new product)

- used as a barrier to entry (eg. when competitors cannot keep up, like patents)

- evens the playing field (eg. sme can compete with mnc)

Challenges that businesses face:

1. Product obsolescence (plc is shorter)

2. Change in management (risk)- because employees need training and if they cannot keep up
unemployment rate will increase (short term unemployment rate)
3. New product will require new market strategy
4. R&D- very expensive (usually only big corporations can afford), so sometimes big corps will
pull their resources and share in order to improve the industry as a whole

Developing nation

Opportunities Threats
- Improve economy, new products - Increased unemployment (more
- Increase employment, tech attracts FDI automation loss of jobs)
- Improved living standards (utilities, - Increased monopoly
infrastructure, healthcare) - Degradation of environment
- Knowledge diffusion - Creates health hazards

Developed nation
 Opportunities Threats
- Market leader - Shift from labour intensive to capital
- Expedite work processes intensive
- Able to minimise human errors - Copyright
- Emergence of new industries due to - Locals are too highly skilled, face
technology (grab, fave pay) unemployment as their jobs get
- Lower transaction costs and bringing outsourced
services to rural areas - Digital disruption
- Laws and regulations do not keep up
with tech
- Create new product/ industries
- Improve produce efficiency
- Lower production costs - Increased cyber crime
- Job displacement
- Increased competition (via tech
diffusion)
-

ICT Facilitates