Importance of Technology in Globalisation and How Important Are Policies in Shaping the Process of Globalisation

Without being physically there, companies can access in-depth information on the various markets and conduct surveys to analyze customer preferences, just with the aid internet. Thus, internet and the associated applications have become an important medium for reaching the customer whether for understanding them or informing them about the new products. E-commerce is an important aspect of business today. Effective technology has strengthened e-commerce collaboration, speeded up e-commerce globalization and brought on success to various stakeholders. (Wang, 2003). Another glaring example of technology helping in globalisation is Electronic Fund Transfer (EFT) used by banks.

With banks being able to transfer financial assets through the EFT system, it has become easy to do business anywhere in the world. Financial markets across the world are connected electronically. This not only allows global trade to happen with ease and transparency but also helps investors take an informed decision based on the abundant and accurate information available about the various markets. Now let us look at how technology as a product makes the world interdependent and hence more globalised. Technology trade has become an important globalisation medium, with intellectual properties and other licenses exchanged and utilized by MNCs with companies of other nations who need them (Rycroft, 2002).

Internationalization of R& D is another aspect of technology which requires companies to use skilled manpower of various countries and hence facilitate the globalisation process. Though earlier, companies tended to keep major R& D activity within the parent country, many companies now are sending some portion of their core technologies to foreign shores and carrying out R& D work there, particularly in centres of optimum excellence. Thus we can see that as organizations of one country become interdependent on those of others, so do their economies.

Also, poor countries need technology, which they can access only through close contact with the world economy, aided by globalisation. (Rodrik, 2002).