The Impact of Technology on Globalization

The effects of technology breakthroughs on globalization are creating immense transformations in the way corporations and industries organize their production, trade goods, invest capital, and develop new products, services, and processes. Specifically, advances in information technology and information systems have become a key component in the most U.S. industries global business strategies with the capability to communicate and process information in a digital form.

Any successful global business is going to have exceptional information technology and information systems to enable the world, and their company, to be more interconnected. This technology includes computers, mobile phones, hardware, software, and artificial intelligence. They provide the means to access information systems of other countries to easily communicate while also increasing a business’ ability to collect data and pursue their economic potential. With the introduction of the Internet and Internet-based tools, the way people share information and communicate globally has been easier than ever which is helping to fuel globalization. Therefore, hardware and software have been playing an important role in globalization by connecting people and systems across the globe. With the rise of artificial intelligence, there are computer systems that can perform tasks that would normally need human intelligence. This includes visual perception, speech recognition, decision-making, and translation between languages. With these skills implanted into a computer system, it is easy to continue expansion overseas in a variety of different ways. A computer system that has visual perception, speech recognition, and decision-making skills help companies save time and money by expanding without the use and training of more employees. This makes it easier to develop business in other countries because there is less human error, fewer language barriers, and the system is set up to handle specific inquires relating to the location by systematic forward planning of strategy and task analysis. While these functions are beneficial, translation between languages can be especially helpful when a company’s global strategy includes business in a different part of the world that does speaks a different language. These information technologies “permit instantaneous communication among the far-flung operations of global enterprises (Stever, Muroyama 2017).”

When a corporation or industry is in the global business sector, quick and reliable communication is key to running a business overseas. Due to the influx of new information technology, devices such as cell phones, networks, and personal computers have had a profound affect on the advancement of globalization. These advances have allowed companies to communicate more frequently and in more ways than ever before, making global business a much more accessible goal without having to worry about distance, time, or location. Instant messaging, email, and calling on mobile phones allow employees to reach one another across time zones and continents to conduct business efficiently and effectively. Computer networks allow global companies to provide universal, immediate services whenever necessary. An example of this would be when a customer submits a request that is then transferred across the globe. This is done without the customer’s awareness that the work for their case is being done on the other side of the world due to the efficiency of this system. Due to advancing information technology and systems, time and distance independence is an achievable goal for any global business.

According to the published work The Globalization of Information Technology in Multinational Corporations from the Information Management Journal, the goal of information technology is:

“To create globally integrated information infrastructures that electronically link their entire supply chains — their sales, production, and delivery processes — into one seamless flow of information across national borders and time zones, with both real-time and store-and-forward access to information from any location (Stephens 1999)”.

Advanced information technology and systems lead to globalization, which, in turn, produce a more competitive global business. For many companies to maintain a competitive edge in the global business markets it is essential for these businesses to integrate their information systems and technology infrastructures on an international basis. Information technology and information systems are the driving force of globalization and will continue connecting people and businesses to provide products and services to customers around the world.


Stephens, David O. “The Globalization of Information Technology in Multinational Corporations.” Information Management Journal, Accessed 23 Mar. 2017.

Stever, H. Guyford, and Janet H. Muroyama. “Globalization of Technology: International Perspectives.” The National Academies Press, Accessed 23 Mar. 2017.

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