- Technological environment consists the methods, techniques and approaches adopted for production of goods and services and its distribution.
- Technology is one of the important factor of success of a firm as well as economic and social development of nation.
- Technology includes the tools - both machines (hard technology) and ways of thinking (soft technology) – available to solve problems and promote progress, among and between societies.
- Type of technology in use, the level of technological developments, the speed with which new technologies are adopted and diffused, the type of technologies that are appropriate, the technology policies, etc. are important to business.
Features of Technology
- Technology brings change: like the way we cook, the way we communicate etc. technology has brought lot of changes in business from barter system to e-business.
- Technology reduces time :between conceiving an idea and implementing that idea. By the invention of internet technologies what has reduced time of transferring information in no time.
- Technology improves quality of life: the advancements of medical technology the life expectancy rate is increased and the control of various diseases is possible.
Impact of Technology on Globalization
- Global sourcing was encouraged not only by trade liberalization but also by technological developments which reduce transport costs.
- Advent of containerization cargo ships reduced transport costs.
- Technology monopoly, like possession of patented technology, encourages internationalization because the firm can exploit the respective demand without any competition.
- Transport and communications given a great force to globalization by their tremendous contribution to the reduction of the disadvantages of natural barriers like distance and cost.
- Developments in the field of air cargo transportation, enabling quick and safe transportation of sensitive goods (like perishables and goods subject to quick changes in fashion/taste).