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This article is written by Sagar Rane, pursuing Diploma in US Contract Drafting and Paralegal Studies from LawSikho. The article has been edited by Zigishu Singh (Associate, LawSikho).

Introduction

It has become appallingly obvious that our technology has exceeded our humanity”- Albert Einstein. We can call globalization an International Integration. Which has increased the mobility of persons, goods, capital, data, ideas, population migration, the growing importance of Multinational Corporations, easy access to financial markets around the world, development of advanced means of communication, and undertaking World trade. We can call it the formation of a single society instead of a diverse world. The New economic policy of India adopted Liberalization, Privatization, and Globalization impacting major sectors of the Indian economy. The country has become more competitive especially in the field of Information Technology and information technology-enabled services.

Technology and globalization turned our economy into a dynamic, complex system. Globalization led to a transfer of knowledge and technology which transformed our communities and led to economic growth through global competition.

Advances in technology are the main reason that globalization has escalated in the last decade. In present information and communication technology, innovations have become smaller in size, more efficient, and often more affordable. In transport technology, vehicles have become faster and larger, as well as becoming more environmentally friendly and cheaper to run. Whether for personal use or business, technology has made the world seem a smaller place and assisted in the rise of globalization.

The economy is in the midst of rapid transformation, the internet, mobile technology, social media, and big data have unleashed a wave of innovation, and it has created thousands of new startups and reinvented traditional industry.

Technology is transforming business and society. Technology is becoming ubiquitous. 

To some extent we need to balance between the use of technology and how it impacts the status quo. For example; when the tractors came into the field, we saw a lot of farmers that were displaced. Because one tractor can do the work of a thousand humans. So we need to economically analyze the net value and the net cost when a particular technology emerges in the industry. 

We all know that when the steam engine emerged it changed the manufacturing sector, so we cannot forget that we have seen over time that technology has changed situations and become leverage for progress. Unfortunately, the consequence is that there is the displacement of jobs but at the same time there is the creation of new ones. The sharing economy has enabled new jobs.

Today’s situation is the first stage of how society might look in the next 5 or 10 years. If the sharing economy works to its fullest capacity there is a possibility that in the future people might drive cars less, own cars less, own fewer apartments as advancement in AirBNB, etc., Due to technology we are seeing people freelancing more, working from home, changing ownership model of cars and transportation seems to be changing rapidly. Sharing economy will contribute to economic growth. Now we are in the era that we have seen the IoT (Internet of things), our sensors are monitoring everything and creating data. We are seeing more and more companies looking at that data, analyzing that data. Technological innovation has helped create new positions like data scientists that never existed 10 years ago.

Space is also likely to become a good investment looking at the big tech companies drivers like Elion Musk, Jeff Bezos who are investing very heavily in space. But the immediate need of the people is to understand how to look at the data analyzed and make actionable insights from data is the rapidly growing trend.

The positive and negative impact of technology and globalization

Spreading the know-how

Globalization using technology has benefited the spread of knowledge and technology, it has helped spread growth potential across countries. 

Outsourcing

Off source, work has become possible using computers and the internet, which helps the companies spend less than ever.

Eg: US companies find it more profitable to contact IT software in countries like India as their services are cheaper.

Faster collaboration

With the growing popularity of devices like smartphones and personal computers, companies can collaborate more frequently in so many more ways than ever before.  

E-business

New business models like online shopping have replaced the old trend of doing business. This resulted in more diverse customers around the world and the transaction has become efficient.

Wide choice of potential employees

Websites like Indeed and LinkedIn enable companies to choose from a wider range of skilled human resources which makes them focus on the needed skills rather than campaigns.

Improved shipping

Gives better seashore collaboration and the best possible business flow. It lowers cost and improves vessel and environmental performance saving fuel with shorter route detection.

Increase in per capita income

The per capita income of Indian households has increased after globalization. Increased standard of living and improved purchasing power.

More choices for the consumer

Many new products from different countries reached countries that are remotely placed and thus gave more choices for the consumer to choose from.

The negative impact of technology on globalization

Destruction of environment

We are all aware that the race for globalization has put a blind eye to the impact that it is causing on the environment. Many green pastures have been destroyed causing an increase in greenhouse emissions. 

Greater risk of spreading communicable disease

With the increase in technology and transportation, the chance of spreading a communicable disease has increased. Covid-19 is a classic example that forced almost the entire world to terminate their transportation services. There is a loss of almost $4 trillion to the global GDP for the years 2020 and 2021 according to the UNCTAD report published on 30 June 2021.

Multinational corporations and their influence through lobbying on foreign policy

Most of the MNC’s influence the government and suppress them from passing any laws that do not favour the MNC’s. Due to monetary power, the MNC’s indulge in activities in formation and collapsing a democratically elected government.

Agriculture has remained undermined

Despite an increase in technology and globalization, the basic sector like agriculture remained underdeveloped causing a lot of poverty and suicidal death in farming communities. Agricultural communities are not absorbed into technological innovations and they are left on their own.

Business security concerns

As company data is usually backed up to cloud business around the world has become more vulnerable especially with their private data.

Lack of job security

Technology has made job security a big issue as technology keeps on changing every day which means individuals need to keep up with the changes in their profession.

Lower wages

Companies can search all across the globe for the lowest price labour so in some cases you will receive lower wages for a job that should be paid a higher rate.

Cultural imperialism

Rich countries are generating more content on the internet; it becomes a form of cultural imperialism in which western values usually dominate. The cultural aspect of globalization is destroying our culture and values. Swami Vivekanand once said one should learn science from the west and let them have a deep sense of our rich moral values.

Social aspect

Nowadays foreign deputation is of high value which youths cannot resist. They finally lose touch with their parents.

Destruction of local industries

Companies take advantage of cheap labour in certain locations which destroys local industries.

Conclusion

No matter how good our technology is there will always be a drawback. It is necessary to have a second-generation economic reform and reduce the negative impact of globalization due to technology on the global communities. Instead of countries focusing on becoming a global economic power it would be a good place that we consider the world as one place and push for the good of all humans as a whole. 

References

  1. https://www.sciencedirect.com/science/article/pii/B9780128182932000100
  2. https://helpfulprofessor.com/technological-globalization-exmaples-pros-cons/
  3. https://www.worldbank.org/en/events/2018/10/18/globalization-and-technological-transformation
  4. https://courses.lumenlearning.com/alamo-sociology/chapter/reading-technological-globalization/

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