Economic Globalization: an Unstoppable Force Essay

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 amid 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 press forward between businesses, citizens, denizens, and governments. Not only if 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 societys thirst for information will increase economic globalization.1. It is because of information technology and how society uses them that businesses t hemselves are beginning to find success by moving away from a proprietary culture to an open-source or mass collaboration system. This is a study shift from the closed-door policies and hierarchical systems that ensured their reenforcement 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 declare 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 (TSEG). Don Tapscott (author of Macro Wikinomics) writes that Goldcorp, an obscure sm wholly-cap company in upset with debt and unable to spend developing a new mining site, did the unimaginable in the mining industry. It disclosed its new digging location on its website and thus invited ideas as to where would be the ideal place to d ig within the large property.The Goldcorp Challenge made $575,000 in prize money available. There were entries from graduate students, precaution consultants, mathematicians, military officers, and a virtual army of geologists. More than 1,000 virtual prospectors from 50 countries got busy.source 1More than 80 percent of ideas yielded substantial quantities of gold. This catapulted an underperforming $ cytosine million company into a $9 billion juggernaut. source 1Not only did online mass collaboration help them reduce overpriced exploration costs but it would have given the small-cap company visibility to a worldwide global investor base.2. Developing countries are now major world players on the stage of economic globalization, and it is possible they may succeed developed countries in future in terms of world trade. In shape for developed nations to be competitive they will need to understand, utilize, and know how to collaborate using the knowledge available to them through in formation technology and society. CNBC journalist Albert Bozzo has indite an article on developing countries and their impact.Emerging markets now account for about 40% of world trade, almost double what they did in 1995, according to the IMF, and more and more are entering the world stage. Source 23. The stats speak for themselves. International trade figures provide a look at the growth of economic globalization from a time when information technology first took hold (about 1980) up until 2007. concord to the International Monetary Fund (IMF) economic globalization has grown substantially. surrounded by 1980 and 2007, the ratio of goods and services trade to global GDP has risen from about 42 to 62 percentSource 3Foreign ownership by individual and institutional investors clearly shows the impact that an information society has had on individuals who seek knowledge outside their country. It is a clear indicator that economic globalization is on the rise.Foreign direct investmen t has risen from some six to 32 percent between 1980 2007.Source 3An argument against globalization is the global fiscal meltdown that began with the Lehman Brothers bankruptcy in 2008 that became a contagion to all financial institutions and countries that had dealings with these institutions. It has rippled down to protests throughout Europe. And this leads me to the 2nd question of whether social chapiter will increase or decrease given our society of sharing information.SOCIAL CAPITAL WILL ONLY INCREASEIf mass economic globalization is seeming to continue then social capital will certainly rise in our information society as a result of the good deal in numbers of large groups of people who can effectively use the internet to gather together to protest, strategically rally, and disseminate information to the world. An advantage to IT is the pelt along within which the message can be carried. These large group of gatherers can affect and may very well define a corporations or governments future ethical policies because their voices makes corporations transparent whether they want to be or not.This is especially true in South America, the Middle East, labor union Africa, and North America where there is a high proportion of young lazy people. In North America the echo boomers (1982-1995) are even larger (representing 33 percent of the population) than the baby boomers.Source 4Collectively they will become the digital generation where their voices will be heard on mass, on-line, and immediately. According to Don Tapscott employment has been a key issue for youth.In the UK young people aged 16 to 24 account for about 40% of all unemployed. In Spain more than 40% of young people are unemployed. We said that if they worked hard, stayed out of trouble, and attended school, they would have a prosperous and fulfilling life. And then we rub table salt in the wound by saying were in a jobless recovery.Source 5A high proportion of unemployed youth are well educ ated and when you consider that they can be heard simultaneously via portable devices and computers using cloud platforms like facebook, youtube, twitter, and blogs you get a glimpse as to the impact they will have on how business may be conducted in the future and how employment for their generation will likely change. In Egypt and Tunisia the lack of employment for young people was a key issue as was the corruption of their governments, and it was transmitted by them using information technology.This is only the beginning of change to the worlds social capital as globalization increases.