How Does Technology Improve Globalization?

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Is reality being replaced with technology, and is this a good thing? For globalization, it is; at least, it is according to the article “Globalization is Becoming More About Data and Less About Stuff” written by Susan Lund, James Manyika, and Jacques Bughin of Harvard Business Review. In my opinion, technology has overall improved globalization and should be encouraged, even though it puts less on importance of physical goods.

Globalization has definitely changed over the years, becoming more digital than anything else. According to the article, “global flows of goods, services, finance, people, and data have contributed at least 10% of world GDP, adding $7.8 trillion in 2014 alone.” This made a bigger economic impact than the trade of physical goods, even though digital globalization has been around for barely 15 years. Digital globalization is working and is much more efficient than the traditional form of globalization.

Digitial globalization has made it much easier for people across the world to connect, and thus make international trade. Roughly 914 million people, according to the article, have “at least one international connection on social media, and 360 million take part in cross-border e-commerce.” This makes it easier for businesses to reach old and potential new customers. Also, “about half of the world’s traded goods are delivered digitally,” due to the fact that this is much easier than the more traditional method of transportation. For example, I am friends with someone in Taiwan and I have bought stuff on Amazon made in other countries. Companies have never had a greater opportunity to expand their businesses than they do today thanks to our modern technology.

Besides efficiency and overall opportunity, digital globalization also enables companies to be more environmental friendly as they move to new locations. Today, “digital technologies allow companies to globalize in a leaner and less capital-intensive way” by having virtual teams that work together remotely to expand companies into new markets with ease. Therefore, there is less pollution from having to make new buildings and reduced transportation emissions. Some companies don’t even need to have a physical presence at all in their new markets, instead being able to be shared globally through technology, meaning more people can receive services without having to make room for big companies. With this in mind, I next plan on researching the specific trade agreements and regulations that come with globalization.