Critically review Essay Example | Topics and Well Written Essays - 1000 words

Critically review - Essay Example Moreover, their access to recent and new technology is limited. In many occasions only the elites of particular under-developed countries have access to technological. The rest of the country is confined to living in of abject poverty by living lives without the vital necessities like purified water, proper shelter and clothing (James, 2001:148). Therefore, if the developing nations would exploit the advantages offered by information technology (IT) by being integrated in the global economy, they would also be conversant with the many characteristics together with the resulting impulses they would propagate. This is because IT alters the way global competition is carried out and locational behavior of the multinational corporations. Since competition is a continuous technological revolution, it requires new principles and concepts that are beyond those offered by traditional national comparative advantage. As a result, the information industry has led to technological transformations and growth of the whole economies. In addition, competition is characterized by fast technological changes, intense global competition, and uncertainties. Consequently, these characteristics need that; you know the anticipation of the core capabilities, continuous technological learning, exact timing of entry into the market, and finally developing of the supporting institutions (James: 2001:148-9) According to James (2001:149-150) the pattern of globalization in the Third world countries has shown that it has led to the deterioration of foreign trade. This is because the overall ratio of trade to GDP n the past decade has been on the rise for the developing countries.. The Third World countries that are seeking to enter the global market now have already been left behind. The huge amounts of cash flow and general capital are required to establish a true presence in the global market; as a result many Third World nations have not yet generated the necessary capital and domestic con ditions so as to be strong competitors in the current world of neoliberal trade. Moreover, globalization is partly due to the factors that are unrelated changes in technology and IT in particular. As result, the most important of these factors is the liberal approach to both international trade and foreign investment that adopted in many countries, both developed as well as the developing. Developing nations have not been able to fully reap the potential benefits that are available through globalization. As a result this has left them much less subjected to the downsides of globalization like sweatshops and pollution According to Craig, David and Porter (2004:45-7) assert that international trade levels have been depending on costs of transport but also on the communication costs between the sellers and the buyers in the different countries In fact, the two distinct mechanisms through which globalization is being driven by a reduction in costs of communication. The more obvious mech anism is that because of the technologies like the digital switching, fax machines and Internet. Therefore, information about the already traded goods can be passed on between the countries more cheaply than it was hitherto possible. This manifests among other ways, the growth of electronic commerce between various businesses, digital goods delivery and the retail sale of