Economics
How is information technology connected with globalisation? Would globalisation have been possible without expansion of IT?
Answer
Globalisation would not have been possible without expansion of IT. Information technology (IT) and globalization are deeply intertwined. Information technology plays a pivotal role in facilitating the interconnectedness by enabling rapid communication, data exchange, and access to information across borders. For instance:
- IT allows instant communication through emails, video calls, and social media. This real-time connectivity bridges geographical gaps and fosters global collaboration.
- IT systems handle international transactions and e-banking, which forms basis of trade.
- IT optimizes supply chains, tracking goods from production to delivery globally.
Related Questions
Choose the correct option.
Globalisation, by connecting countries, shall result in
- lesser competition among producers.
- greater competition among producers.
- no change in competition among producers.
A news magazine published for London readers is to be designed and printed in Delhi. The text of the magazine is sent through Internet to the Delhi office. The designers in the Delhi office get orders on how to design the magazine from the office in London using telecommunication facilities. The designing is done on a computer. After printing, the magazines are sent by air to London. Even the payment of money for designing and printing from a bank in London to a bank in Delhi is done instantly through the Internet (e-banking)!
In the above example, underline the words describing the use of technology in production.
What do you understand by liberalisation of foreign trade?
Tax on imports is one type of trade barrier. The government could also place a limit on the number of goods that can be imported. This is known as quotas. Can you explain, using the example of Chinese toys, how quotas can be used as trade barriers? Do you think this should be used? Discuss.