Impact of Technology on Globalization

Advancements in technology have considerably facilitated globalization. In fact, technological progress has been one of the most forces driving globalization. Technological breakthroughs compel business enterprises to become global by increasing the economies of scale and also the market size needed to interrupt even. Patented technology encourages globalization because the firm owning the patent can exploit foreign markets without much competition.

Information technology has led to the emergence of the worldwide village. as an example, the worldwide web has reduced the barriers of your time and place in business dealings. Buyers and sellers can now make transactions at any time and in any part of the world. Technological change also affects investments.

Earlier, technology production was limited to rich countries with high wages. Now technology is definitely transferable to developing countries where high-tech products are combined with low wages. an outsized number of firms in advanced countries are now outsourcing labor-intensive services from developing countries like India.