Technology Is the Driving Factor for Globalization Essay

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While capitalism is characterized by its relentless expansion, always trying to overcome limits of time and space, it was only in the late twentieth century that the world economy was able to become truly global on the basis of the new infrastructure provided by information and communication technologies ( Castells, 2000: 101). It is interesting to analyze the way the rise of the new global economy came nearly at the same moment of the introduction of new communication and information technologies, such as the internet and satellite communication networks. Many of the features of capitalism rely on the usage of new technologies. Furthermore, according to Manuel Castells, this new economy emerged ‘because the information technology…show more content…
Within an economic perspective, Castells (2000) argues that technology has the power to determine the capacity of productivity and organization of society. Information is power, and technology provides information. Therefore, Castells was interested in analyzing the way this new economic system is emerging as a ‘transitional form toward the informational mode of development’ ( Castells, 2000: 78) which is most likely to characterize the coming decades. Throughout history one can point out the important role in which technology plays to the increase of productivity and consequently to the generation of economic growth. In his study, Castells was interested in analyzing if in fact technology was linked to the increase of productivity or not and if productivity is an indicator of the wealth of nations. His study revealed that ‘in a long term productivity is the source of the wealth of nations. And technology, including organizational and managerial technology, is the major productivity factor’ ( Castells, 2000: 94). Therefore, productivity is able to generate wealth to the nation. Nevertheless, the most important component in the process of productivity is technology. However, Castells also points out the fact that firms and nations are not interested in technology or productivity to help humankind. What they are actually interested in is, clearly, profitability. For that reason, ‘profitability and
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