Globalization and technology
1.0: Introduction
Inequality is a fundamental problem that is facing the global economy as well as widening the poverty gap between the less developed and developed nations, thus widening income distribution within a country and geographical regions (Mills, 2008). Moreover, the global economy is at risk of another crisis. That digitalization and automation are likely to suppress wages and employment for most poor people, whereas boosting the wealth at the very top. The objective of this study is to understand the widening gap of inequality and its causes, different research examples of technology, and how it has improved globalization and international business. The purpose of the study is to know if income inequality matters and its global effect. The report is limited to the widening gap of income inequality, technology, and globalization. Also, the study is based on an online database.
2.0: Widening inequality gap
Growing inequality in terms of income is one of the most significant challenges in current times. The developed economies have been facing the adverse problem of the vast difference between the rich and the poor for many years (Dabla-Norris, 2015). The emerging or current markets in the developing countries are experiencing mixed reactions in as far as inequality is concerned. On the contrary, some states are experiencing a reduction in the inequality subject even though the aspect of access to the health system, education, and financial services remains constant. The issue of inequality is unanimously discussed by different disciplines, such as research scholars and policymakers. All are trying to understand and evaluate the basis at which it should be carried out or solved (Dabla-Norris et al., 2015).
The range of inequality levels in the world varies from 0.55 to 0.70 based on its form of evaluation. The increased inequality level in the world amounts to specific per capita income disparity in many countries, resulting in approximately ¾ globally. Some countries like India and China have experienced a reduction in the level of inequality as a result of the relevant measures put in place. That is evident from the increase in the number of individuals from the poverty line to a standard life (Dabla-Norris et al., 2015). However, the wealthiest countries are experiencing a better education system as compared to developing nations. This shows a divisive inequality that is not easy to bridge. From the analysis, education is one of the determinants of becoming either rich or poor. The persons with limited education background have the possibility of leading an imperfect life as compare the well-educated individuals. Either the government’s commercial distribution also plays an essential role in the definition of inequality between the rich and the poor. Finance is the fundamental estimation of one’s position in terms of wealth. The person is leading bellow 7.5 dollars per are considered inferior.
3.0: Technology and Globalization
Technology is defined as entities, both immaterial and material, which are created by the application of physical and mental efforts to achieve some values. Also, technology can refer to machines and tools that can be used to solve the world’s problems. There are unknown human impacts on technology change (Hashim, 2007). However, digitalization, innovation, and change in technology are destroying social employment. At the same time, researchers are saying that technological advance co-exists happily within the humans because they learn how to use machines. However, different examples of technology, such as Information communication technology, transportation technology, artificial intelligence, and e-commerce technology, have improved globalization and international business.
Ecommerce technology is one of the emerging issues in the market today.
3.1: Information Communication Technology (ICT)
Information Communication Technology can be defined as technology that is used to handle broadcast media, management systems of intelligent building, transmission systems, telecommunications, and network-based controls. Information communication technology is one of the aspects that are contributing to globalization and the interconnections of international businesses across the world. It has created the revolution, which is the core derivative of globalization (Hashim, 2007). ICT creates an avenue for different people to share out information for connection and creation of a world of comparison. It has changed the scope, intensity, speed, and the impact of transformation in the world. Globalization is benefiting from ICT revolutions like the use of internets, computers, fiber optic cyber, and satellites. ICT and the international financial create a finance-based supermarket to cater for the world business and stock exchange, international banking and real-time access to financial services across the globe (Norton, 2017)
ICT has a significant impact on countries with advanced GDP through their economic growth. Economic stimulus and growth of most of the developed countries are a result of the enhancement of ICT through government policies in place. The use of cloud computing is one of the aspects of the information communication technology that has enabled the economy of the developed countries to be at the pick as compared to the developing markets. Most of the countries that have employed the use of cloud computing in the sectors of their business, including the SME programs boosting economic growth from all perspectives. The use of internet eases and enables communication services more efficient and interactive between different sectors in the economy (Peansupap, & Walker, 2006).
ICT is also coming with specific challenges to the countries that are embracing it. Globalization is a result of the sharing of certain information that is either harmful or unlawful to the economy of the world. Cybercrime and bullying are also one of the challenges these countries are facing with the coming of ICT (Peansupap, & Walker, 2006). Most people are vulnerable to be bullied by unknown criminals that can access their data through their social networks. The countries are also facing the challenge of monitoring the adverse use of this technology, including its maintenance and control. Such support requires strict and conditional evaluation to avoid such problems that may arise from the technology.
3.2. Transportation Technology
The aspect of transportation technology is referring to the machines and tools that are used to improvise the condition of transport of goods and humans. Transportation is a form of globalization. Transportation technology has enabled an increase in the process of globalization by opening access to different places across the globe. The rich countries are benefiting from this sector through the advancement of economic development and growth in the transportation market. The technology is employed by most of the developed countries as a form of financial planning and development. The interconnection of the country’s economy is linked to the mobility of goods, people, and information. The quality and quantity of the transport infrastructure correlate to the economic level of development. Improved transportation technology creates socio-political and economic opportunities like more access to markets, investments, and employment.
Transport technology also plays a significant role in the globalization process and international business. The aspect of transportation technology is referring to the machines and tools that are used to improvise the condition of transport of goods and humans. Transportation is a form of globalization. Transportation technology has enabled an increase in the process of globalization by opening access to different places across the globe. The technology of transportation has created room for people to search for business opportunities from around the world. This creates a constant growth and development to the countries with limited or low financial income.
Either, this technology is also impacting negatively to the countries. The continuous expansion and growth of the populations create congestions in the global economies. This implies that most developed nations are facing the challenge of transport growth and use. The cost of maintaining technology requires considerable damage to affect the GDP growth of such countries. Most of the countries are facing the challenge of adaptation and the usage of such technology.
3.3 Ecommerce Technology
E-commerce marketing is the exercise of purchasing and selling of products and services or transmission of data and funds through the internet. Such transactions can occur between business and business, consumers to market, or consumers to consumers. Ecommerce has created a significant impact on the economies of developed countries. Employment is one of the actors that have become more efficient in the hands of ecommerce technology. Most of the employment opportunities are currently available via the internet, as many people can work and submit their results at their various homes. Access to services such as financial transactions, purchase of products, and goods are enabled by the emergence of ecommerce technology (Dabla-Norris, 2015).
One of the challenges is that the distribution of the labor market is not evenly considered. Specific jobs are disregarded as a new, improved system is put in place as a result of the technology. Traditional roles such as the postal services are dismantled as email, and new software is developed to take the course. Such people leading such jobs like postal services are rendered jobless hence poor living standards. The ecommerce sector is also vulnerable to online cyber threats; thus requires continuous check and watch to avoid exploitation of the users.
3.4 Artificial Intelligence
Artificial intelligence involves a wide range of computer sciences relevant to the construction of the machines that can perform roles that requires the knowledge of human. Artificial intelligence involves various science disciplines with different approaches, even though the advance in machine learning is creating a significant change in the industry of technology. Most of the developed and rich countries are benefiting much from AI technology as compared to developing counterparts. The developed countries have the most advanced medical care due to the involvement of artificial intelligence technology. Most of the paramedics and doctors perform their duties with the help of the manufactured machines. Such countries have mechanisms that can relay the information from their patients and evaluate the possible disorders affecting the patient.
In as much as the technology is significant to the developed countries, it comes with specific challenges and complications. The cost of maintaining and upgrading technology is enormous and requires an intricate amount of investment. The machines are taking the place of human labor hence creating a huge gap in the unemployment in such developed countries. Most of the developed countries are facing the crisis of unemployment due to the replacement of the skills by artificial intelligence machines. Employment is one of the aspects that define the GDP growth of a country. The AI technology creates a sizeable gap between the demand and supply as a result of the replacement of such skills by the machines.
4.0 Conclusion – Does Income Inequality Matter
Growing inequality in terms of income is one of the most significant challenges in current times. The developed economies have been facing the adverse problem of the vast difference between the rich and the poor for many years. The emerging or current markets in the developing countries are experiencing mixed reactions in as far as inequality is concerned. On the contrary, some states are experiencing a reduction in the inequality subject even though the aspect of access to the health system, education, and financial services remains constant. The issue of inequality is unanimously discussed by different disciplines, such as research scholars and policymakers. All are trying to understand and evaluate the basis at which it should be carried out or solved.
The riches countries are experiencing a better education system as compared to developing nations. This shows a divisive inequality that is not easy to bridge. From the analysis, education is one of the determinants of becoming either rich or poor. The persons with limited education background have the possibility of leading an imperfect life as compare the well-educated individuals. Either the government’s commercial distribution also plays an essential role in the definition of inequality between the rich and the poor. Finance is a crucial estimation of one’s position in terms of wealth. The person is leading bellow 7.5 dollars per are considered inferior.
The report also indicated that there is a need for thorough research and development in both the developed and developing countries to evaluate some of the causes of inequality. Most of the study is either based on one side of the equation, the developed countries. Intensive research on the subject of inequality within various countries should be carried out to solve this problem. Either technological advance has resulted in the current globalization status in the world. But it has come with specific challenges, especially concerning the developing countries and the countries with a weaker economic situation.
More and intensive research should be carried out on the relationship between the developed countries and the third world nations to help bridge the gap between the duos in terms of economic uniformity. Some of the relevant measures should be put in place by the government to foster equality of all the citizens irrespective of their level of education or financial status.
References
Dabla-Norris et al. (2015). Causes and Consequences of Income Inequality: A Global Perspective.
Hashim, J. (2007). Information communication technology (ICT) adoption among SME owners in Malaysia. International Journal of Business and Information, 2(2).
Mills, M. (2008). Globalization and Inequality. Journal of economics. Volume 25, Number 1 1–8.
Norton, A. (2017). Automation and Inequality: The Changing World of Work in the Global South.
Peansupap, V., & Walker, D. H. (2006). Information communication technology (ICT) implementation constraints. Engineering, construction, and architectural management.