Globalization as a process, is the extent by which communications technology and capital movements impact the global arena can be understood. Artur Borcuch and his co-authors explore several distinct elements of Globalization. They view trade, foreign direct investment, short term capital flows, knowledge, and movements of labor as integral to the process of globalization. (2) Principle to all of these elements is the localized – globalization of knowledge, which has benefited from the creation and utilization of the internet. Two of the major benefits being the lowering of communication costs and the closer integration of societies. (2)
In prospect, Globalization in conjunction with the Internet has proven to be two of the strongest forces for progress in the developing markets, and is likely to continue in the coming years. When we examine the globalization of knowledge, it is made clear that technical knowledge, alongside ideas that have altered societies; have served to enhance the growth of nations, its people and also its institutions.(2)
The globalization of financial markets have, the driven exchange rates, interest rates, and stock prices, in various countries that have been intimately interconnected by the internet. As a direct result, we are now positioned to profit from the economic and social conditions transversely over the world. (2) The Internet aides in this process by increasing the speed, security, and accessibility of global transactions made between nations. Exploring the effects of internet globalization since the 1990’s, we are able to realize that by increasing the significance of information placed on the industrial production processes, keeping up with rapid changes in technology, ultimately increases product demand. With increased product demand, there would be better economic resolve within nations.
The increase in technological globalization spawned a new era of competition and economic growth. (3) It was A. Borcuch who stated, “the efficiency of information control technology in the development of international competitive power, health and education, and the power of ICT in creating new job possibilities have been assumed as a significant component determining the socio-economical structure of countries and as a way of decreasing poverty in developing and underdeveloped countries.” (2)
The Internet’s has surpassed national boundaries that have existed in the world economy. Addressing the inequalities of wealth that resulted from traditional trade, and economic practices. There has long been growing gaps in income and living standards between rich and poor nations. Katsuaki Sato states, “Globalization was originally proposed as a way for developed countries to seek additional growth opportunities abroad, after it became difficult to achieve economic growth domestically.” (4) In Japan, an agricultural based economy, there are many fields where comparatively few products and services are produced domestically. This has made nations like Japan a epicenter for cheap labor.
Sato attempting to explain the effect that globalism has had in countries like Japan; states, “when a nation exports its industries with the aim of achieving steady economic growth and the private sector begins to operate internationally, there tends to be less reason, for the nation itself to exist as a unit.” (4) Speaking the divide seen in globalism. Nations who focus primeraliy on economic growth are said to negelect the adiitinal culture benefits that come from globalism and this neglect brings division amoungst the consumer and its government. ruth we have seen in nations either overtaken by globalism or that has yet to undertake the modern n inequality of benifts of globalism in nations not driven by worker class of society, rather through government and industrial Furthering his argument he states, “While diplomatic relations between countries can sometimes be strained, at the local level, that sort of tension is rare. The values of people around the world who use the internet and entities that operate off of its platform have converged.” (4) This has resulted in the diversifying of the global markets and its consumers.
The technological era of globalization has overlapped with a continued decreasing amount of people living in extreme levels poverty. Countries that promote economic basics rights, improving infrastructure, ensuring political stability, carrying out land reform, providing social safety nets, addressing market failures such as impeded access to credit-tend to succeed at reducing poverty.