Ø Accessing the force of technology on globalization, opportunities and threats. Also figuring out the tension on stakeholders.
Technology is a key force which leads to the process of globalization. It not only integrates the society but also integrates the different markets (John H Dunning, 2003). Technology in the past has lead to the integration of local market to the national market and national market to the international market; this has lead to the increase in the global trade (Schaeffer, Robert K, 2003). Globalization has been possible because of the technology as it has shortened the time and the distance. It is not only beneficial and related to the one sector for example information technology but related to all the sectors indulge in any kind of an activity or a business for example manufacturing or service. Technology has given power to the people to exploit the knowledge and create new idea which can be shared among people of same nation and people of different countries irrespective of the location (Global Envision, 2006).
Globalization of technology is beneficial to developing countries like India, which excel in the field of outsourcing and which is also a source of employment. Globalization has lead the students and managers from USA come to India to learn the skills and technology related to the information technology and outsourcing (Ben Worthen, 2007). Moreover globalization has resulted in profitability and generation of revenue for country like India; it has helped India in generating 8 billion revenue through outsourcing (Industry week, 2006).
Opportunities to IB: with the availability of the services like internet and 3G country like India and China will be a global leader in providing outsourcing services to the European countries as they offer these services at a cheaper rate as compare to the counterpart. Moreover this will create a global business as they will be buying raw material from different country and will be selling these to different countries (Associated content, 2007). In addition to this with the fest for the green technology, many international firms will be doing research to develop the way of generating green and clean energy, which can lower the carbon emission (Susan, 2010). This will lead to a competition among firms to be the first one to develop this technology. This will help them to do a global business. For this they need to get the patent and license for the technology they had developed and can sell it to the other firms and countries, so this will give those firms an opportunity to do an international business.
Threat to IB: it is been observed that there is a proportional increase in the number of internet users and cyber attack. Banks and Firms indulging in outsourcing will be the most effective by this as all the financial status and transactions are been carried through internet, this will affect the nature of international business (Tim Weber, 2010) and high cost related to the green technology.
Tension between stakeholders: (Donaldson, 1996) believes that different working norms between the two nations can lead to a tension. Moreover instability in the government and changing relations affect the nature of trade and transaction.
Ø Summary of WEF and Davos 2010
World economic forum is a private foundation which brings in the issues and problem which are happening in the world and participants' debate on them. The people who participate in the WEF ranges from top companies, CEO's, young leaders, young scientist to mayors of the city (cities with the highest growth rate).
In the Davos meeting, which was held from 27-31 January 2010 the emphasis was given more on the economic factors, there was lot of discussion on the economic crisis and its solution. Participants believed that the countries like India and China whose economy and growth are increasing proportionally will be the tool for recovery from the economic crisis compared to the European countries. But at the same time there was less focus on the factors like unemployment. In the forum there was also discussion on the new monetary system which was proposed by the Nicholas Sarkozy, to start doing business with a new currency instead of dollar which has been governing the world trade so far. The hot topic throughout the forum was the climate change and introduction of new technology which will be known as green technology, which will be helpful in reducing the carbon emission.
Ø Critically assessing the contribution of Davos 2010 to the technology and introducing the initiates, which can also have an effect.
In the Davos 2010 it was proposed that international trade will increase as the world has realized the need for clean and green technology. Major economies in the world have also promise to provide a monetary assistance for the research and development of clean technology. This has urged private firms and scientist to research and develop the technology which can lower the carbon emission and purpose that technology to the world. This would result in the global business (World Economic forum, 2010). As different countries will be in favor of buying the clean and green technology for the growth and prosperity of the nation. Moreover research and innovation for the new technology will also play a pivotal role in governing the international trade. It was predicted that the market size for the technological sector will increase from the $69.3 billion in the year 2009 to the 171.4 billion in the year 2014 just because of the development in the technology like smart grid (Business week, 2010). The urge for clean technology has already led to the globalization as companies from different part of world for example Alcatel-lucent of France, China mobile, AT & T and Telefonica of Spain are all ready working together to develop a device which will consume less power and lower the carbon emission. It was proposed in WEF that if this technology works out, it would open new doors for the business which will account to 100 billion dollar business throughout the world (Booz & Co, 2010). In addition to this Davos also warned about the cyber threats which can affect the nature of the global trade. They cited the example of Estonia whose relations got worse with the Georgia because of the hackers who affected the defensive technology of Estonia at the time of the political tension. Davos has tried to contribute in increasing the trade by inviting the hackers to the conference and by making them share knowledge with the governments and the private firms. There hackers discussed about the ways of assessing the internal threat and ways of getting over from it. They also guided about the nature of cyber war and ways by which it can be neglected (Tim Weber, 2010). WEF explores areas like transportation where there is a wide scope for the international business and which in the past has been neglected, it also focuses on the area like “supply management system and urban sector” where the growth rate is exponential and which welcomes the different players to intervene.
Ø Recommendation to governments and companies
It's been seen that world economic forum discus the global issues but it never come out with any concrete real issues, as there is only formal discussion. Moreover focus is only on the G20 countries which dominate the discussion and the developing countries are sidelined.
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