Essay on Information Technology and Globalization

Introduction
Globalization is the thesis that the increasing global interdependence of states, individuals and social and economic organizations is reducing the autonomy of individual states. It seems to be partly attributable to the effects of the spread of global information technology networks and also to have profound implications for the future development and use of the technology.

The background to globalization is a combination of powerful economic, social, political and technological factors.
One of the most controversial of these is dominance in international trade of multinational enterprises (MNEs). MNEs account for 80 per cent of traded technology and 75 per cent of the world trade in commodities (such as cotton, sugar, steel, etc.). Although there are over 37,000 MNEs, a mere 300 of them are responsible for 80 per cent of the world’s foreign production. (John Hagedoorn and Jos Schakenraad 1992: 163-190).

A more controversial factor is the current dominance in the global economy of capitalist (‘free market’) rules for international trade. The International Monetary Fund and World Bank determine the rules for international currency exchanges and are a source of capital for states whose economies are in difficulty - but often only subject to such states agreeing to curb state expenditure and raise taxes. The former General Agreement on Tariffs and Trade (GATT) has been succeeded by the WTO (World Trade Organization), which enforces tougher free trade agreements, including international treaties on intellectual property rights. The ‘hard’ major currencies of dollar, euro and yen are desired and accepted by the inhabitants of smaller, less prosperous economies which must often do business on terms dictated by the central banks controlling these currencies.

A major political factor in determining the shape of the current world political system is US military and diplomatic power, along with the collapse of the Soviet Union and the desire of China.....................

ESSAYS ON TECHNOLOGY