How Has Technology Impacted the Global Business Environment?

According to the National Science Foundation, technology-focused companies are

successful in foreign markets and develop high value-added products. It is through

these technological innovations that companies around the world have been able to

flourish. Technology is not without its drawbacks, of course, but many would probably

argue that the advantages for the global business environment far outweigh the cons.

Competitiveness

Companies like Toyota, McDonald's, Microsoft and Apple have a global presence that

can be seen and felt around the world. Technology has enabled these companies to

compete fiercely by establishing locations in many countries and effectively creating,

sharing and disseminating ideas or products to their employees, partners and

customers worldwide. Technology tools like enterprise software enable companies to

rapidly deploy new products and services to stay ahead of the curve. On Toyota's

website, for example, the company states that it is always seeking out technology that

"prevents and minimizes the damage of an accident in any situation." Companies large

and small realize that to remain competitive in a global economy, they must incorporate

technology to move their businesses forward.

Lower Wages

One of the drawbacks of technology on the global business environment for some has

been the issue of outsourcing. Technology has enabled companies to establish facilities

anywhere in the world where they can pay cheaper wages and little or no taxes. While
the companies that outsource may not view this as a drawback, those who lose jobs as

a result of it do. Several major corporations have made it their mission to source labor in

regions where no one else can compete. According to an article in Bloomberg Business

week, in the Philippines, China and India, college graduates are willing to work twice as

hard for one-fifth of the pay that American workers who hold those jobs would normally

make.

High-Tech Jobs

On the flip side of the outsourcing debate, innovations in technology are opening up

new job opportunities locally for those with the skills to fill these roles. Vice president for

academic affairs and chief academic officer for NanoCollege Robert Greer says that

graduates of the college are going right from graduation into work. Nanotechnology and

biotechnology are two fields that are in high demand with the rise of computer and

mobile technologies.

Strategic Planning

Globalization has forced companies to engage in strategic planning in order to grow

their businesses and compete in an international marketplace. FedEx Express, for

example, has created the largest intercontinental air express network in the world.

FedEx takes a strategic approach to everything from its supply chain to its operations to

its IT infrastructure to ensure that it can continue being a leading provider in its market.