Globalization

Introduction

Some definitions of globalization focus solely on cross-border trade-for example, globalization as the absence of borders and barriers to trade between nations (Ohmae, 1995). The International Monetary Fund describes globalization as "the growing economic interdependence of countries worldwide through the increasing volume and variety of cross border transactions in goods and services and of international capital flows, and also through the more rapid and widespread diffusion of technology". Although these definitions convey a sense of dynamic change and boundary they portray the outcomes of globalization too narrowly. Brown (1992) defined globalization as the interconnections between the overlapping interests of business and society, a definition that acknowledges the broader context in which globalization takes place. To ensure a systems view, globalization is defined here as a process leading to greater economic interdependence and networks and the economic, political, social, cultural, and environmental results of that process. There is plentiful, if sometimes contradictory, research on the financial and economic aspects of globalization; the broader impact of these phenomena, however, has received less attention by business scholars.

According to The components of globalization include GDP, industrialization and the Human Development Index (HDI). The GDP is the market value of all finished goods and services produced within a country's borders in a year, and serves as a measure of a country's overall economic output. Industrialization is a process which, driven by technological innovation, effectuates social change and economic development by transforming a country into a modernized industrial, or developed nation. The Human Development Index comprises three components: a country's population's life expectancy, knowledge and education measured by the adult literacy, and income.

Globalization and Technology

Technology has something to do with...