Research on the effects of technological revolution on the international economy is growing significantly. Technology has changed the manner in which firms and countries organize production, invest capital, manage processes, and trade goods. For instance, erudite information technologies allow instantaneous communication among systems of far-flung set-ups of international enterprises (Matyushok, Krasavina, Berezin, & García, 2021). The implications of globalization through technology on the global economy include capital outflow from emerging economies to industrialized countries, growth of new markets, and the growing insecurity within the financial marketplaces.
Capital Loss from Emerging Markets to Industrialized Nations
The capital expenditure from developing markets to advanced countries is an emerging concern. Mertens (2018) availed statistics about the volatility of technological economic advancement in rich and developing countries in attempts to analyze globalization through technology. Moreover, the analysis also focused on the effects of economic insecurity and instability at the global scale while considering a universal viewpoint on international corporations from emerging economies, especially firms shifting to advanced countries.
Growth of New Markets
Studies on developed markets depicted inefficiency regarding monthly returns as opposed to the longstanding view that industrialized economies tend to be effective when matched with emerging ones. Part of the fronted reasons includes lengthy presence, enhanced maturity, and integration of technological changes (Biryukov & Romanenko, 2017). The authors established that neo-industrialization is the dispassionate procedure of creating an inventive model of industry anchored in superior technological structures.
The Growing Insecurity in Financial Markets
The investigations on the general impression of the effects of technological globalization on the financial markets, with insights of findings sources of potential vulnerabilities and strengths, are comprehensive. Konlechner, Müller, and Güttel (2018) analyzed the risks and benefits of economic stability linked to technological globalization in financial markets. They established the significance of global time to avert instability within the whole financial sector and its detrimental ramifications for the universal systems.
In conclusion, the impacts of globalization through technology on the global economy can no longer be undervalued. Globalized technological changes impact the world economy through capital outflow to industrialized countries, progression of new markets, and the rising uncertainty in fiscal markets. The global transmission of technology, knowledge, and know-how is rising, making it significant to the world economy. Technology-driven growth affects every part of the world, regardless of whether an individual selects to incorporate into or invest in it.
Biryukov, V., & Romanenko, E. (2017). Economic behavior of business entities, culture and institutions: Specifics of their interrelations in conditions of neo-industrialization. European Research Studies Journal, 5(4), 370–385. Web.
Konlechner, S., Müller, B., & Güttel, W. H. (2018). A dynamic capabilities perspective on managing technological change: A review, framework and research agenda. International Journal of Technology Management, 76(3), 188–213. Web.
Matyushok, V., Krasavina, V., Berezin, A., & García, J. S. (2021). The global economy in technological transformation conditions: A review of modern trends. Economic Research-Ekonomska Istraživanja, 1-41. Web.
Mertens, J (2018): Financial globalization and instability in the early 21st century. MPRA. Web.