Role of Technology in Globalisation

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A fundamental shift is occurring in the world economy. We are moving progressively away from a world in which national economies were relatively isolated from each other by barriers to cross-border trade and investment - by distance, time zones, language, national differences in government regulation, culture and business systems. And we are moving toward a world in which national economies are merging into an interdependent global economic system, commonly referred to as globalization.

The electronics industry is the largest and fastest growing manufacturing industry in the world. The rapid rate of globalization is made possible by the rapid development and expansion of the Internet economy, which in turn is fueled by the
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Take for example, Boeing Company 's latest commercial jet airliner, the 777. The 777 consists of 132,500 major component parts that are produced around the world by 545 suppliers. Eight Japanese suppliers make parts for the fuselage, doors and wings; a supplier in Singapore makes the doors for the nose landing gear; three suppliers in Italy manufacture wing flaps and so on. These suppliers are the best in the world at performing their particular activity. The result of having a global web of suppliers is a better final product , which enhances the chances of Boeing winning a greater share of the total orders for aircraft than its global rivals, Airbus.

There are substantial impediments which still make it difficult for firms to achieve the optimal dispersion of their productive activities to locations around the globe. These impediments include formal and informal barriers to trade between countries, barriers to FDI, transportation costs, and issues associated with economic and political risk.

Drivers of Globalization:

1.Declining Trade and Investment Barriers -

International Trade occurs when a firm exports goods or services to consumers in another country. Foreign Direct Investment occurs when a firm invests resources in business activities outside its home country. Many of the barriers to international trade
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