consists the methods, techniques and approaches adopted for production of
goods and services and its distribution.
Technology is oneof
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
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
Technologybrings 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.
Technologyreduces 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).