Globalization and technology
With the Internet many countries are now connected and their economies are integrated into a global economy as national boundaries are being eliminated. With online business, trading is becoming easier and flows smoothly from one place to another. With globalization, the availability of inexpensive labor workers in less developed countries can provide a new way to produce things cheaper. Today companies can manufacture products in low-cost countries and sell these products all over the world. With fast transportation, products from one place can be shipped to another quickly. With information technology, even intellectual works from one place can also be distributed to skilled workers who live in other places to work together to create joined products. Basically technology has changed everything where ideas and information are quickly shared, which has resulted in the creation of more innovations, more products and services.
There is a misconception that globalization causes jobs loss but the fact is it only distributes jobs to other places. The actual number of jobs is still the same but it no longer belong to a particular place or country but relocate to wherever the companies can get better profits. Instead of doing work in one place, companies can move factories to others where the cost is lower. Twenty years ago, China had the lowest labor cost and many companies outsourced works there but recently when the cost is increasing, these companies are moving factories quickly to other countries. It is predicted that Africa and S. America will be the next destinations for low labor cost areas. When there is a shortage of certain skills in one place, companies can acquire those skills in others by distribute works to several countries to take advantage of the skilled workers there. In fact, all economists agree that globalization has led to better distribution of wealth and creates millions new jobs worldwide. For example, when there is a shortage of software skilled workers in the U.S. many software companies outsource works to other countries that have abundant of software skilled workers. India is the best example of this phenomenon with $100 Billion dollars software works export annually and creates over five million high paying jobs to India's economy.
Technology can improve productivity and efficiency but it requires special skills. Companies need skilled workers who understand how to use technology to their works. Today, companies do NOT hire graduates with general knowledge anymore but looking for a specific skill that they need. A college degree is no longer a guarantee for job but students must have the special knowledge and skills demand by the job market. Change in immigration laws allows workers to move easily from one place to another to seek job opportunities, especially where their skills are in high demand. Each year, the European Union (EU) allows hundred thousands of skilled workers to come and work. The U.S also accepts about hundred thousand skilled professionals which lead to the complaint from developing countries that they are “stealing their brain powers” and create the “Brain drain” phenomenon.
The relative ease of travel has been a significant factor in promoting education where hundreds of thousands of people from less-developed countries have traveled to the U.S., Europe and other developed countries to get a better education and after graduated, many decide to stay there to work instead of returning home. These also open new opportunities to host countries as they are enriched themselves and their economies with highly skilled workers. For example, Silicon Valley, the birthplace of technology, where many successful companies are founded are full of highly educated inventors and professionals, more than half of them came from foreign countries. Today 85% of the highly paid jobs in the U.S came from companies that have been created only within the last 5 years, and 90% of the world's wealth is concentrated in technology fields such as information technology, biotechnology, nanotechnology and medical technology and these industries are the key drivers for the economic prosperity in the U.S.
Information technology means that communication will be exploding at unprecedented rate and make many things happen as people share knowledge and inventions to solve problems and take care of social needs. For example, Google is the leader in Internet search and it has created a new culture where information can be accessed and obtained with a few mouse clicks. The result is it is now the most powerful communication tool ever exists.
Today, everybody recognizes that globalization is the new phenomenon of the 21st century. Those who accept it will embrace the future but those who do not accept it will be left behind in this competitive environment. Technology drives changes and change happens whether people like it or not. With globalization and technology, everything will change and to take advantage of this requires a higher level of thinking and strategizing. Business will change into a new ways which requires new way to educate students. Teachers will be teaching students “How to think” rather than “What to think.” Students will be learning mostly on their own initiatives and throughout their lives as learning is a lifelong and no longer restricted to schools. Society will be restructured into a knowledge community that empowers people to be leaders within their own lives and they are responsible for their own knowledge and skills.
Sources
- Blogs of Prof. John Vu, Carnegie Mellon University
