Globalisation 3: The role of technology 3.1 development Globalisation 3: The role of technology

Important terms Transport Systems Communications Systems Diffusion The means by which materials, products and people are transferred from place to place. Communications Systems The ways in which information is transmitted from place to place in the form of ideas, instructions and images. Diffusion the spread of a phenomenon over time and space. Internet a group of protocols by which computers communicate.

The role of technology in globalisation Advances in technology have affected all aspects of global economic activity. Major advances in transportation and telecommunications systems have significantly reduced the geographical barriers separating countries and peoples.

The role of technology in globalisation Improved Transport Systems Improved Communication Systems The development of refrigerated and container transport, bulk shipping and improved air transport has allowed the easy mass movement of goods throughout the world. The development of communication technologies such as internet, email and mobile phones have been vital to the growth of globalisation because they help TNCs to operate throughout the world. The development of satellite TV channels such as Sky and CNN have also provided worldwide marketing avenues for the concept and products of globalisation.

The role of technology in globalisation

The role of technology in globalisation

The role of technology in globalisation The Internet The Internet The internet has been essential to the development and speed of globalisation. It is the fastest-growing mode of communication ever: It took 38 years for radio to reach 50 million users, 13 years for television to reach this mark, but just 4 years for the internet. It has been estimated that the number of internet users around the world increased from 361 million in 2000 to 3 billion in 2015. This gives a global internet penetration rate (percentage of the population) of 34.4 %. By world region this varied from 88% in North America to 29% in Africa.

The role of technology in globalisation Global banking Modern communication technologies allow vast amounts of capital to flow freely and instantly throughout the world. The equivalent of up to $US1.3 trillion is traded each day through international stock exchanges in cities such as New York, London and Tokyo.

The role of technology in globalisation The internet and other developments in technology mentioned have allowed TNCs to manage complex operations all over the world and to talk to its customers in large numbers directly. TNCs can react more quickly than ever before to changing consumer demand. The rapid growth of large TNCs such as Microsoft, McDonald’s and Nike has caused globalisation but improvements in various aspects of technology have played a major role. The huge investments of TNCs in farms, mines and factories across the world is due to globalisation and the supporting role of technology. Technology allows TNCs to produce goods and services and to sell products on a massive scale throughout the world.