Digital technology has played a key role in enabling globalization. It has reduced the costs of transportation and communication across national borders, allowing for global sourcing of materials and transactions to occur anywhere in the world at any time. Technology adoption from other countries enhances living standards and economic growth through new goods, services, jobs, and capital. While innovation creates competitive advantages, adoption of foreign technologies is also important for development. Overall, technology has been estimated to drive 80% of globalization by making production networks cheaper and cross-border dealings easier via the internet and other advancements.

1. Digital Technology Impact
On Globalization
Name – Karan
Roll No- 2010993702

2. Role of Technology in Globalization
• In the period of knowledge development, technological innovation is visualized as the prime
driver to create and maintain competitive advantage. Interest in technology development and
business innovation increased as concern mounted over the economic power of the nation and
over competition from abroad.
• Globally competitive companies use broad knowledge base, a global human network, and Internet
technology to flourish against international competition (regionally, nationally, or internationally)
without the use of significant capital investment, travel or even an international presence.

3. Ways of Technology Development
There are two basic modes of advancing technology:
1. One is innovation (developing one's own new technologies) and
2. The other is adoption (introducing technologies that have been devised elsewhere). Adoption
of technology from overseas enhances living standards substantially, and even to achieve long term
growth based on the continuing technological innovations achieved abroad. But technology adoption has
its limitations as well. Technological progression in global business can lead to economic growth
because they contribute to the manufacture of new goods, new services, creating new jobs, and new
capital.

4. How technology helps achieve
Globalization
⚫ Technological advancements reduce costs of transportation and communication across nations
and thereby facilitate global sourcing of raw materials and other inputs.
⚫ Patented technology encourages globalization as the firm owning the patent can exploit
foreign markets without much competition.
⚫ Information technology has led to the emergence of the global village. For example, the World
Wide Web has reduced the barriers of time and place in business dealings.
⚫ Buyers and sellers can now make transactions at any time and any part of the globe.
⚫ Technological change also affect investments.

5. Impact of Technology on Globalization
•Friedman pointed out that 80% of globalization is technology driven.
•Now technology is easily transferable to developing countries where high tech production can be
combined with low wages.
•A large number of firms in advanced countries are now outsourcing labor intensive
services t o developing countries like India.
•Technology has also impacted the cultural globalization with inventions like telephone
and television.
•Telephone has made it feasible for anyone to talk to each other regardless of where they are
geographically in the world.
•The spread of information technology has made production networks cheaper and easier.

6. Key Points
Helps increase
Productivity.
Encourages FDI's.
Helps increase the
living standards.
Helps maintain the
balance of trade
between import and
export of an country.
To gain
macroeconomic
stability.
For the economic
development of the
country.

7. Thank
You