The Role of Technology in a Shrinking World

Technology plays a key role in globalisation. Technology allows us to quickly, cheaply and easily communicate between different areas.  This has made is easy do business between countries. Hence, the expansion of TNCs are on the increase.

Another aspect of technology is that it is said to be cheaper than other inputs of production e.g. labour. This is why technology has allowed automation to take place between various firms.

In this post I want to look at the role of air travel, telecoms and the internet in promoting an interconnected world.

Air Travel

Air travel has always been around even if in the form of hot air balloons. It is claimed that the first was flown in 1903 and since then they have become popular and more sophisticated. In recent times, they have hit the mass markets, with companies such as Ryanair and EasyJet providing air travel for extremely cheap prices. This has meant people can visit countries all over the globe. This has many implications such as:

(a) It is easier for TNCs to manage branches all over the globe

(b) Consumers have more knowledge and demand of overseas goods and services 

(c) TNCs cannot exploit workers, tax etc. as free press has access to these places and can put their reputation down

Thus air travel has played a significant role in promoting an interconnected world.


Telecommunication is the transmission of messages over significant distances for the purposes of communication. In earlier years, these were slow methods such as telegrams. In recent years, they have become fast and efficient and many are now cheap too e.g. mobile phones, social networking sites (this blog is an example too!), websites, email etc. Telecoms has enabled us to strengthen and develop relations  with people from others which we haven’t been able to do so well in the past.

Communication is crucial for large firms like TNCs. Poor communication is seen as a cost. So as firms can use technology to communicate through different countries effectively, they can develop and widen their branches.


The internet was developed in the 1990s and became publicly popular in late 2001. This has changed the shape of our world whether it be communicating to someone 24 hours away in real time or being exposed to all kinds of knowledge or shopping at the click of your fingertips. The way we can communicate and research through the internet has helped create the interconnected world we now live in. The implications of this are that we now we have so much knowledge about everything- TNCs have to be transparent!

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