Globalization through technology on the global economy? Essay (Essay Sample)

The Impact of Globalization Through Technology
Mudiwa Bwanya
Institutional Affiliation
The Impact of Globalization Through Technology
Technology has eased the lives of human on earth. For example, the discovery of penicillin by Alexander Fleming in 1928 revolutionized the medical industry. Technology has also succeeded in shrinking our planet and led the way to globalization. Globalization through technology has a positive impact on the global economy.
Improvements in technology have led to global financial markets. A global financial market eases the ability of governments and companies to obtain funding from investors. Although retail finance is mainly obtained at a national or regional level, most financial instruments are linked by financial flows that react to rates of return differences (Perraton, Goldblatt, Held, & McGrew, 1997). Other financial instruments like contracts for difference are completely global. As a result, investors are seeking global diversification of their portfolios. Against this, globalization skeptics cite the strong correlation between domestic savings and investment rates as proof of domestic capital markets ' significance. However, the correlation between national savings and investment decreased in the 1980s, with significant surpluses and deficits in the balance of payments emerging (Perraton, Goldblatt, Held, & McGrew, 1997). Also, if investment and savings are collectively determined by common factors or governments target the current account, high correlation may still occur even with perfect capital mobility (Perraton, Goldblatt, Held, & McGrew, 1997).