Economic Globalization: An unstoppable force
Written on July 1, 2011
Source: Angus Maddison, Oxford University Press, 2007
Economic globalization has been occurring since the Hellenistic Age (323 BC) but it is since the industrial revolution, particularly from the mid 1800s, that trade between countries has had a notable increase.
Today, however, there appears to be a parabolic rise due to the advent of information technology which enables the transmission of shared knowledge, foreign ownership, and business transactions to be performed with exponential speed between businesses, citizens, denizens, and governments. Not only is mass globalization inevitable but it is already occurring with the increased use of new computer and telecommunications tools, and the sharing of knowledge between organized groups and regular citizens who now have instant ‘access’ to each other worldwide.
There are several indicators as to why information technology and society’s thirst for information will increase economic globalization.
1. It is because of information technology and how society uses them that businesses themselves are beginning to find success by moving away from a proprietary culture to an open-source or mass collaboration system. This is a major shift from the closed-door policies and hierarchical systems that ensured their livelihood in the pre: social media era where information was kept secret. Business models that open them to new ideas shared by an online knowledge base can often offer them access to a larger share in the global market. Society has been changing the way business is done by demanding transparency and inclusion in the process and by providing greater payoffs for the business as a result.
An example is the company Goldcorp (TSE:G). Don Tapscott (author of Macro Wikinomics) writes that Goldcorp, an obscure small-cap company in trouble with debt and...