SOM 122 Lecture Notes - Lecture 8: World Wide Web, Technological Change, World Trade Organization
23 Sep 2015
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Som 122 - lecture 8 - globalization: a closer look. International trade occurs when a firm exports goods or services to consumers in other countries. Foreign direct investment occurs when a firm invests resources in business activities outside its home country. View the world, rather than just one country, as the market. The lowering of trade barriers made globalization of markets and production a theoretical possibility. Technological change has made it a tangible reality. Perhaps the single most important innovation has been the development of the microprocessor, which enabled the explosive growth of high-power, low-cost computing, vastly increasing the amount of information that can be processed by individuals and firms. 1990: fewer than 1 million users were connected to the internet. 2005: 1. 12 billion users (18% of the world"s population) Development of the commercial jet aircraft (shrinks the globe) Travel, technology and communications industries positively impacted.
