A major factor that has contributed to a push towards globalization is the technological change that has revolutionized communication. Satellite has made .Its because of satellite communication that there is no time gap now between an event and its news.
Since communication has improved significantly, products technologies and ideas now transcend national borders much more quickly. We are today witnessing an era of technology standardization thus diffusing differentiation between brands. In developed countries like Europe and North America, brands have become commodities. The customer is no more able to differentiate between the brands and among the product categories. All this makes firms look for new markets. This also enables firms to transfer technology much more effectively.
Satellite communication made people or rather the world customers aware of not only developments but even life style and consumption patterns indifferent parts of the World. The customer in Asia and elsewhere yearned for the life style shown in Santa Barbara or the Bold and the Beautiful. Customer in Asia now wants the latest fashion and is aware of international brands. Today product news travels much faster than it did in the 1980s and hence there is a pressure towards creating global brands or products for the world market.
The Gulf War of 1991, the disintegration of the Soviet Union, the signing of GATT or NAFTA and other major world events have been reported simultaneously with their occurrence. New channels like CNN, ABC and BBC now have brought events directly in the life of individuals round the world. In Asia we also saw the emergence of a number of TV channels which offered to its viewers 24 hours of news, sports, and entertainment, music and ethics programs through its channels. Channels like Star is a Hong Kong based telecommunication firm which telecast its programs through its own satellite.
Technological developments have not just been restricted to television. Computers and telecommunication have also had their share of developments. Electronic mail and facsimile transmissions (FAX), answering machines, cellular telephones and pagers have all ensured that nobody is missed or misses a call. Business deals are conducted much faster today than just a decade back. These developments have reduced the need for frequent business travel.
But nonetheless, more and more people are taking to flying and international travel. As the â€œflying machinesâ€? (aero planes) use computers for accurate takeoffs or landings even in the worst weather conditions and hence are now safer and also as people become aware of other countries. Tourism is the big gainer in this entire exercise International travel and tourism means demand for International brands or global brands that are known for specific quality and products benefits.
Globalization of business then is the logical outcome of all these technological changes occurring in different parts of the world.