“Technology and globalization go hand-in-hand. Globalization unleashes technology, which in turn drives firms to plan production and sales on a global basis. Technology changes the work we do and in nearly all cases, the jobs created by it demand more education and training. It also changes the way business operates by transforming relationships between suppliers, producers, retailers and customers.” (Ross, 1993, p. xii)
Throughout history the introduction of new technology has brought changes in the job force from one sector to another. In the 1800’s from farming labor to the labor to produce farm equipment as new farm equipment technology has emerged. As airplane technology was developed there were fewer jobs in transatlantic cruises and more jobs for air travel personnel. As production technology increases jobs in manufacturing and transportation decrease, but other jobs are created over time. They might not be for the displaced workers but created new job designs in the service, clerical, finance, shipping/warehousing, sales and marketing fields.
“As technology advances, new, faster, better goods and services are available and in demand. To fulfill consumer demand, there is another shift in the labour market toward workers who are trained in the skills that can provide such goods and services.” Through technology innovations more jobs are created throughout societies. Many international companies have a larger staff due to international selling. The internet, one major technology has opened up small nations to world markets. People in America can offer micro loans to entrepreneurs in India so they can start their own businesses.
The four phases of globalization saw a rise in technology that helped international selling. The first phase of globalization was from 1830 to its peak in 1880. This first phase saw the introduction of railroads and ocean transportation causing a rise in manufacturing and the cross-border trading of commodities. Also during this first phase the first working telegraph was introduced in 1837; this cased an increase in telegraph operators and a decrease in pony express riders and messengers. As railroads were built goods could travel across the country and across borders. Then Alexander Graham Bell in 1876 successfully transmitted speech creating the telephone. The use of the telephone enhanced order taking, order processing, material ordering, and operations for businesses. Business could more easily communicate and transport their product globally with this new technology.
The second phase of globalization was form 1900 to 1930 with the rise of electricity and steel production. “The open hearth process also allows for the production of larger batches of steel … and the recycling of scrap metal.” “The mass production of cheap steel, made possible by the discoveries described above (and many others not mentioned), has revolutionized our world. Consider a brief and incomplete list of the products made possible (or better or more affordable) by cheap, abundant steel: railroads, oil and gas pipelines, refineries, power plants, power lines, assembly lines, skyscrapers, elevators, subways, bridges, reinforced concrete, automobiles, trucks, buses, trolleys, refrigerators, washing machines, clothes dryers, dishwashers, nails, screws, bolts, nuts, needles, wire, watches, clocks, canned food, battleships, aircraft carriers, oil tankers, ocean freighters, shipping containers, cranes, bulldozers, tractors, farm implements, fences, knives, forks, spoons, scissors, razors, surgical instruments, ball-bearings, turbines, drill bits, saws, and tools of every sort.” European business began established foreign manufacturing plants by the 1900’s. BASF, a German company, began conducting business in North America. Nestlé, a Switzerland company, opened operations in United States, Britain, Germany and Spain by 1905. In Europe and North America there was an emergence of multinational enterprises.
The third phase of globalization is from 1948 to the 1970’s with the formation of the General Agreement on Tariff and Trade (GATT), the end of World War II and the development of the Marshall Plan to reconstruct Europe. GATT of 1947 was created to reduce international barriers for the improvement of trade and investment. When World War II ended there was a demand for consumer products and a need to rebuild Europe and Japan. The Marshal Plan was to reconstruct Europe after WW II. This plan was to increase European economies, “the Marshall Plan has also long been seen as one of the first elements of European integration, as it erased tariff trade barriers and set up institutions to coordinate the economy on a continental level.” The Marshal Plan helped European non-communists countries to re-import goods back into their country. The main supplier for these imports was from the United States. “The years 1948 to 1952 saw the fastest period of growth in European history. Industrial production increased by 35%. Agricultural production substantially surpassed pre-war levels.”
The fourth phase of globalization began in the 1980’s and continues until today. With the advances in technology, communications, manufacturing, and information; emerging markets are seeing remarkable growth. Cross border trade and investments are growing. The personal computer, the internet, and advances in communication. 48 thousand personal computers were sold in 1977, in 2001 the sales of personal computers topped over 125 million. Technology advancement has allowed just about every household to have two personal computers. Many different businesses have emerged with the advent of the personal computer. Hardware manufacturers including; chip, processors, ram, hard drives, disk drive, cd/dvd drives, printers, monitors, components, and more. Software companies have also evolved to take advantages of the faster processing speeds. In the 1990’s the Internet went from University/Government use only to mass commercialization. “As of 2009, an estimated quarter of Earth’s population uses the services of the Internet,” according to Wikipedia. With the world wide spread use of the Internet many businesses can have a worldwide presence. Developing communications has also helped business’s globalization. Skype and Vonage allow businesses to communicate very inexpensively worldwide.
Thomas L. Friedman author of Dueling Globalizations: DOS capital, Foreign Pol’y, says “globalization has “brought down the many walls that limited the movement and reach of people.” Friedman argues that as the world is wired into networks, there will be “more direct power to individuals than at any time in history.” Overall, the author posits that the integration of technology is the clearest and most precise method of characterizing globalization.”
Without technology the globalization of products and markets with international selling would not have been as effective. Through technology borders are coming down and more people are able to be reached. eBay sells products from people all over the world and sells to people all over the world. Several years ago my husband was looking for a watch to complete his Disney Villains watch collection. We were able to find a company in London, through the internet. As a buyer we purchased with the CHERNABOG Disney Villain Watch because of the use of technology; the internet, international selling, cross Atlantic shipping services, etc. Without this technology and globalization of this product I would have not been able to complete my husband’s Disney Villain watch collection.
References
Cavusgil, S. Tamer, Knight, Gary, Riesenberger, John R. (2008). International Business: Stragety, Management, and the New Realities. New Jersey: Pearson.
“History”. Nestle. Retrieved April 26, 2011 http://www.nestle.com/AllAbout/History/HistoryList.htm
“Innovations in Technology and Globalization: Introduction to the Information Era”. Making Career Sense of Labor Market Information. Retrieved April 26, 2011 http://workinfonet.bc.ca/lmisi/making/chapter2/TANDG1.HTM
“Internet”. Wikipedia. Retrieved on April 26, 2011 http://en.wikipedia.org/wiki/Internet
Personal Computer”. Wikipedia. Retrieved on April 26, 2011 http://en.wikipedia.org/wiki/Personal_computer
Spoerl, Joseph S. “A Brief History of Iron and Steel Production” Retrieved April 26, 2011 http://www.anselm.edu/homepage/dbanach/h-carnegie-steel.htm
“Technology & Globalization”. The University of Iowa Center for International Finance and Development. Retrieved April 26, 2011 http://www.uiowa.edu/ifdebook/issues/globalization/readingtable/technology.shtml
“Telephone History”. Privateline Telecommunication Expertise. Retrieved April 26, 2011 http://www.privateline.com/mt_telephonehistory
Thomas L. Friedman, “Dueling Globalizations: DOS capital, Foreign Policy”. Retrieved April 26, 2011 http://findarticles.com/p/articles/mi_m1181/is_1999_Fall/ai_56750484
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