Role of Ict in Flattening the World

1404 Words Jul 15th, 2013 6 Pages
ROLE OF ICT IN THE FLATTENING OF THE WORLD

ICT (information and communication technologies) is increasingly reducing barriers among States, individuals and corporations by creating a more economic interdependence and global integration which in turn makes the globe a dynamic place. Since the development of technology the world has consistently been made smaller from time to time by reducing the physical, economical and socio-political barriers thus turning the world into what scholars refer to as a global village. We cannot talk about ICT and its role in flattening of the world without touching on globalization. Globalization in this case refers to the increasing free flow of readily available technology, ideas, market and people. In the
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We can understand this better by looking at how Friedman quickly details how the United States benefited from India’s seven Institutes of Technology (IIT), created in 1951. These highly-competitive schools, which are subsidized by tax dollars, churn out highly-qualified, highly-skilled professionals in need of jobs. Y2K created jobs for Indian software engineers because a large number of techs were needed to remedy the millennium bug. Moreover, the fiber optic boom, which occurred at the same time, allowed any “service, call center, business support operation, or knowledge work that could be digitized” to be outsourced. Thus, the dot-com bust resulted in jobs for Indians, who would work for less money than Americans and could perform the tasks in India because of their education as well as the technology of the PC, the Internet, and fiber optics.
ICT has lead to development of developing countries through offshoring. Offshoring is when a company moves one of its factories to another country (not just a specific task, as with outsourcing) for various reasons, such as cheaper labor and resources, fewer trade barriers, and fewer taxes. When China joined the World Trade Organization in 2001, offshoring reached new heights because China now had to comply with international law and standard business practices, therefore assuring investors that establishing factories in China would be financially beneficial.
ICT