Globalization refers to the integrations and the interdependence of the world’s economy. The integrations result from the evident technological advancement where people have reached the level of interacting together without having to travel or meet face-to-face with those they interact.
Technology therefore forms the basis of all these advancements as it has made the world a global village with people conducting business transactions through it without literary moving to other places. As a result, the paper reveals how technology has in one way or another affected international trade, globalization and financial stability.
Technology has significantly boosted globalization. Internet For instance has of late provided a platform in which people from all over the world interact from different locations thereby sharing ideas without making any movement or meeting physically.
People through social networks for instance facebook, yahoo mail and twitter exchange their experiences and ideas thus enhancing the sharing of cultural views and ways of life. The rate at which information flows has increased enabling the creation of new relationships around the world.
Apart from these social networks, internet as a form of IT has facilitated business across the globe. Many companies and businesspersons seal deals and carry on with their business through the internet.
This trend has led to what people currently refer to as economic globalization where economies of different countries are internationally integrated through the engagement of foreign direct investments, trade, migrations and even flow of capital.
All these put together contribute to international trade whose advancement relies much on satellite and internet. In fact, virtually all business institutions own satellite dishes to facilitate their businesses around the globe.
Developed countries for instance the US, China, Germany and France have an upper hand over less developed nations especially the African countries based on the evident development gradient in the field of IT. This indifference has positioned the developed countries at a level higher in the international trade based on their ability to carry on their business transactions quickly as compared to Africa countries.
When it comes to financial stability, technology comes in handy. Technology has enabled quick transmission of information relating to financial matters or rather position around the world with businesses using it to choose the most promising businesses, which provide good returns or rather, which have a stable market.
IT has facilitated transactions and transfer of money through means like wire transfer and PayPal among others. However, it also faces a big challenge based on a failure to put appropriate measures in place to safeguard smooth operation.
It has brought with it, many fraudsters who use the opportunity to fraud people of their money hence making it less popular means of money transfers. Other countries around the globe employ tactics like delaying in exportation or importation of their products based on the prevailing market conditions in order to avoid making loss.
Therefore, this has contributed a lot to the seclusion of other areas especially those believed or seen to provide less returns hence influencing negatively on the general trade of such like countries.
Apart from these instances of frauds, IT has to some extend promoted financial stability based on the evident quick transactions therein hence reducing any instances of inflations in the value of the currency or deflation in different markets around the world.
In conclusion, it seems apparent that technology for instance internet, electronic mail among others plays a critical role in globalization, financial stability and more importantly in international trade.
The world has become a global village where people interact, work and complete their transactions in the comfort of their rooms because of technological advancement. Good enough, with technological inventions occurring day-by-day, these fields amongst others stand a better chance of becoming better in the near future.