Question

Class: International Business

Question: Explain the elements that lead to the increased complexity of globalization.

Answer 1

One of the most essential change phenomena is globalization, accompanied by
regionalization (the European, American, and Asian blocs) and fragmentation (nations’
desire to be independent, like the nations of the former Soviet Union and Yugoslavia).
By globalization is meant the process that is leading to the situation where most of the
states in the world belong to a system having global interactions. Regional processes
like the integration of Europe happen at the same time and they form an intermediate
phase and a part of this process.
Globalization is actually a result of a logical process. The history of humankind shows
that human systems have had the tendency to create new, higher technological,
economic, and sociopolitical system levels during the course of development. Human
systems have an onion-like structure: new, higher levels are like new layers on an onion,
possessing, for example, longer geographical distances in their interactions. The
development from self-sufficient village communities, to city-states, to nation-states, to
regional systems (Europe, North America, Pacific-Rim, etc.) and finally to an
embryonic global system is a “natural” course of systemic development; the same type
of evolution can also be seen in nature.
It has been characteristic of this development that the birth of a new system level has
meant an increase in the complexity of the whole system, and also, that the new, higher
level has had the tendency to delimit the autonomy of the level below it. This is very
much true, for example, concerning the relationships between the state and the
municipalities in many countries. It seems to be true in the relationships between the
European Community and its member countries—now and even more so in the future.
If the same logic continues in the future, it means that those social units that are parts of
the globalization process have to some degree adapted their local and regional activities
to the limits and rules of the global system. The issue is simply that, if you want to be in
the game of the global economy as well as the political and societal system, you have to
obey the rules of the game, at least in the long run. The other alternative is to stay away,
a model that was earlier adopted by Albania.
Fragmentation, the strong desire to create new independent nation-states, which we
have seen as a result of the collapse of the Soviet Union, is a part of the whole process
of globalization and regionalization. Nations want to have their independent societal systems, but most of them also want to be active members of the more general global
community. For example, the slogan that is often heard in Barcelona tells us a lot about
this process: “Independent Catalonia in Integrated Europe.”
Globalization is not only a technological or economic process. Its cultural implications
can hardly be exaggerated. Cultural coherence, multiculturality, tolerance of difference
will be ever more important issues to be learnt. Multiculturality in its different forms
will increase in the future.
At best globalization processes offer us better possibilities to learn from different
cultures, and to live peacefully in a global multicultural community. Conflicts between
cultures are naturally possible, too. It seems reasonable that the more people have
physical and immaterial interactions (as in using the Internet) the more they will reach
mutual understanding and respect towards other cultures. A real society of citizenship is
possible. This is clearly a learning process for all peoples and cultures.

Information Society Equals Even More Complexity
The societal development in several countries is leading to the information society,
where the major driving forces are the development of ICT (information and
communication technology) and the fast increasing use of new devices (see Chapter
Transformations of Information Society). Some of the most advanced countries like the
Nordic countries and the United States are very much “there” already.
The current phase in developed Western countries has been named, depending on the
standpoint: information society, communication or interference society, service society,
third wave, learning society. The third wave, information society, started according to
Castells in 1970s with the technological turning point triggered by microchips. At the
same time information and knowledge became to represent the most essential elements
both in production factors and products. The major issue in ICT is not the role of
information and knowledge, but their self-cumulative nature and their use in the
creation of understanding and in the development of ICT. The core of the information
society is formed by the technologies of information processing and communication: the
logic of technology is the basis for the development of the information society.
The information society includes both agricultural and industrial societies and also
many new features such as the increase of information, know-how and interlinkages as
well as the movement towards nonmaterial issues. The information society is more
complex than earlier societies, because of emerging new issues. This can be seen not
only as an increase in complexity, but also through the emergence of new activity
levels; first of all international cooperation is moving towards global operations. There
are clearly both quantitative and qualitative aspects of emergent processes.
According to Manuel Castells the first technological turning point was grounded on the
invention of the steam engine and tools replacing manual work. From the viewpoint of,
for example, transport a very great change came with railways using steam engines in
locomotives. In communication technology a major impact came through the telegraph.
The second technological turning point a hundred years later, was started through development in electrical technology, combustion engines, chemicals, and iron
technology. In transport the major effect was obtained through the introduction of cars,
lorries, and buses. In the communication sector some very influential inventions—
telephone and radio—appeared. During these two phases new transport systems had a
big impact on the development of the new industrial society including the creation of
wealth and changes in ways of living.
The third technological turning point is based on the development of ICT triggered by
the use of microchips. Now changes in the way of living and business will be
determined by ICT. Of course the old structures from the old industrial age will still be
used and some of them are necessary also for the information age, but they are no
longer the driving forces of development.
It seems plausible that ICT devices are still both developing and coming into
widespread use. After the success story of telecopying (telefax) at the end of 1980s,
people are now using mobile phones and personal computers with e-mail and Internet
connection. Technological development will improve devices so that the speed of data
transfer as well as memory capacity increases, but the size of devices decreases. At the
same time multimedia capabilities—integration of different signals—will be improved
so that one device will replace computer, telephone, television, and radio.
The driving force in the information society has been technology. The technological
efficiency of computers has been improved, the size of mobile phones has decreased,
and network connections have improved. The development of content has been coming
afterwards. Many experts now think that the production of content will soon be the
major driving force. The future will be stamped by the applications. It can be noticed
already, for example in the US and the Nordic countries, that the applications are
driving forces in the development of technology. People are expecting that technology
satisfies their needs and provides them with services. Consumers are not satisfied with
buying only a mobile phone. They make buying decisions based on the services
provided; technology is then the issue of second order.
Personal communication systems, Internet, and the integration of public communication
systems such as telephone, cables, and satellites are promising an interactive world,
where every home and office are linked to each other. The number of Internet users is
continually increasing. The fusion of telecommunication and information technology
will be finalized and a new vocabulary will probably appear in communication: people
will be televoting, teleshopping, teleworking, and in general telemaking everything.
Sophisticated information services are being developed all the time and they should
provide better and more cost-efficient possibilities for learning, working, and shopping
which earlier were not possible without traveling. Some people already work part-time
from their homes and teleshopping is increasing. Universities have started distant
education systems and virtual universities, which are greatly expanding.
When trying to pick such developments from fast developing information technology,
which could have long-lasting consequences, a megatrend of maximum mobility can be
noticed. People want to move freely but at the same time carry a lot of options with
them. In this way they know as much as possible about their surroundings (where is the nearest taxi or a Chinese restaurant) and they are able to communicate in different ways
wherever they are. This makes it flexible and easy to take care of business matters, run
errands, take care of ones own family, have free time and in general live one’s own life.
The development of a global super network—based on broadband (ISDN, ATM) and
fiberoptics—possibly already in ten years will improve different virtual interactivities
like teleservices and teleshopping. In developed countries this will cover probably most
people but also in developing countries upper and middle classes will be incorporated
into this development in the following decade.
Universal connectivity is the major megatrend in information technology, which will be
realized with high certainty. There exist both the demand for it and also a will to
provide it. At the same time as people want to increase their freedom with maximum
mobility, they want to be connected into everybody and everything. With the aid of new
ICT it will possible in the not too distant future to stay at home all the time (virtual
travelling, teleshopping). In other words, people will be free to travel or to stay at home
and in both cases it will possible for them to be connected to everything. It is up to you,
whether you live a life of Indiana Jones or Homer Simpson.
And, the next phase is already in its embryonic state. Biosciences, biotechnology, gene
therapy, are gaining more and more influence in research, technology, everyday life,
and societal development. Within a few decades it will probably make sense to speak of
biosocieties instead of information or knowledge societies