• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Impact of Information Technology On Financial Globalisation

Extracts from this document...


IMPACT OF INFORMATION TECHNOLOGY ON FINACIAL GLOBALISATION INTRODUCTION Marshall McLuhan rightly pointed out in 1968 that world is progressively en route towards 'global village'.(). We are gradually moving away from a world in which nationalized economies were relatively isolated from each other by barriers to cross boarder trade and investment- by distance, time zones, language, national differences in government regulations, culture and business systems.1 Over the past few decades, the world has been experiencing a phenomenon, which has seen the proliferation of technology at exponential rate (Cairncross, 2001). It has shrunk the world and reduced the importance of geographical location of market. The domestic barriers no longer restrict travel and communication, finance and trade; rather they operate on a multinational or transnational scale (Stephens, 1999). An unending series of technical advances has transformed the way we work, communicate and view the world. Information technology (IT), which includes computer and telecommunication technology, has been hailed as one of the most strategic and pervasive technologies.2 Today Business, Governments, and even non-profit organisations are using information technologies to become more efficient and provide better customer services at national as well as international level3. ...read more.


Internet has allowed consumers access to global marketplace from the convenience of their homes and offices, twenty-four hours a day. (). E-commerce, which includes online credit card transactions, e-cash, e billing, e-cheques, electronic invoices, purchase order and financial statements has transformed the business practices through B2C (business to consumer) and B2B (business to business) commerce. Consumers have gained more powerful and efficient purchasing in the electronic marketplace through B2C e commerce. Sharing of information between consumers has resulted in new products and improved services. Global price competition has resulted in lower prices for buyers. But the real effect of e commerce in globalisation has been through B2B e commerce, which accounts for more than 80% of electronic commerce in the world today. It is helping many companies to buy their products and services or sell them products and services. Gartner (2001) predicts that only B2B e commerce will total $8.5 trillion in 2005. ().` IMPACT OF INFORMATION TECHNOLOGIES ON FINANCIAL SECTOR: Financial markets cover a wide range of institutions and practices through which lenders and borrowers are able to interact. Lenders include banks and other financial institutions that gives loans to individuals and institutions.() ...read more.


(). Increase in the productivity has resulted in the fall of prices and improvement in quality (www.hicss.hawaii.edu/HICSS_34/PDFs/OSSCI03.pdf) CONCLUSION Technology has most definitely changed the Marshall McLuhan's famous term to 'global e village'. Although technology has been playing a significant role in the strengthening of globalisation since the invention of steam engine, this is the development of information technology that has really intensified it. Today world and global economy are under heavy influence of technology. Financial sectors, multinational corporations and production facilities are the sectors, which have really benefited. It has transformed the business and functional strategies of financial institutions like banks and investment companies, by giving them an opportunity to target international customers while not loosing their focus on local ones. Without these technologies it was not possible for large multinational corporations to start and manage their subsidiaries all around the world. Information technology's part can be also seen in the productivity by reducing processing time and complexity. With the substitution to human labour it has revolutionized the production organism. (http://hsb.baylor.edu/ramsower/ais.ac.96/papers/neunaha.htm). In fact this is information technology that has made the notion of economic globalisation and a single global economy possible. 1 http://www.cheathouse.com/essay/essay_view.php?p_essay_id=13737 2 http://www.indonesia_ottawa.org/economy/G8/G8_it_revolution.htm#gg 3 http://www.guardian.co.uk?globalisation?story 4 http://www.guardian.co.uk?globalisation?story ` 5 http://www.guardian.co.uk?globalisation?story/0,7369,823274,00.html 6 http://www.unesap.org/drpad/publication/survey1999/svy4d.htm 7 ?? ?? ?? ?? ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. Where does the World Trade Organisation fit in the overall scheme of international public ...

    They would gain most from strengthened Article VI provisions. In the Ministerial Declaration, WTO members agree to negotiations "aimed at clarifying and improving disciplines under the Agreements on Implementation of Article VI of the GATT 1994 and on Subsidies and Countervailing Measures".

  2. Analyse the reasons for reducing protection and its impact on the domestic and ...

    Our exports as a component of GDP increased from 10% in 1980 to 22% in 2004, a direct result of the specialisation caused by trade liberalisation. The removal of protection also has a significant effect on the current account deficit (CAD).

  1. Corruption and Globalisation - Both of them have been so pervasive in recent years. ...

    According to Neelankavil (2003), the environmental factors that cause corruption include: - Lack of a clear distinction between what is considered 'public' and what is considered private. This leaves the door open to appropriate public resources for private gains. - Excessive administrative and discretionary power concentrated among a few.

  2. Free essay

    Multinational Corporations in context

    The development of China as an international superpower has only harnessed Bank of China's ultimate objectives of attaining a significant market share of Asia's financial market and then formidably, the number one bank in the world.

  1. Free essay

    Globalisation and changing career patterns

    It helped revive whole communities and areas. A prime example of this is that of Derwent Valley Foods whose premises were built on the site of a former colliery in the town of Consett (Adam Smith institute).

  2. Is Mexico better off with NAFTA

    The dependence of the US market for Mexican workers is also under threat as US growth has stagnated since 2001, especially in the industrial sector where most Mexican exports end up. As a result of low wages and few job opportunities, illegal migration from Mexico to the US is still blooming.

  1. External Factors Affecting Projects - Tendering for projects in Oman.

    other charges or procedures that hinder trade between GCC countries are removed. 3.6.2 Maintains a common external policy on foreign imports, implementing a 5% import duty on imported goods, on the principle of payment on the first point of entry into the GCC.

  2. Carbon Credit Trading

    Heinz has expressed interest in sustainable manufacturing. Involving themselves in a program such as the CCX would be beneficial to Heinz, as it would contribute to Heinz's sustainability, as well as provide experience in dealing with future regulatory schemes. The compliance segment of the carbon market is commonly branched off

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work