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Chapter 11: Globalization and the Digital Divide Learning Objectives Upon successful completion of this chapter, you will be able to: • explain the concept of globalization; • describe the role of information technology in globalization; • identify the issues experienced by firms as they face a global economy; and • define the digital divide and explain Nielsen’s three stages of the digital divide. Introduction The Internet has wired the world. Today it is just as simple to communicate with someone on the other side of the world as it is to talk to someone next door. But keep in mind that many businesses attempted to outsource different needs in technology, only to discover that near-sourcing (outsourcing to countries to Chapter 11: Globalization and the Digital Divide | 245 Internet Statistics by Continent. Source: https://www .internetworl dstats.com/ stats.htm. (Click to enlarge) which your country is physically connected) had greater advantage. This chapter looks at the implications of globalization and the impact it is having on the world. What Is Globalization? Globalization refers to the integration of goods, services, and culture among the nations of the world. Globalization is not necessarily a new phenomenon. In many ways globalization has existed since the days of European colonization. Further advances in telecommunication and transportation technologies accelerated globalization. The advent of the the worldwide Internet has made all nations virtual next door neighbors. The Internet is truly a worldwide phenomenon. As of December 2017 the Internet was being used by over 4.1 billion people world wide. 1 From its initial beginnings in the United States in the 1970s to the development of the World Wide Web in the 1990s to the social networks and e-commerce of today, the Internet has continued to increase the integration between countries, making globalization a fact of life for citizens all over the world. 1. [1] 246 | Information Systems for Business and Beyond (2019) https://www.internetworldstats.com/stats.htm https://www.internetworldstats.com/stats.htm The Network Society In 1996 social-sciences researcher Manuel Castells published The Rise of the Network Society, in which he identified new ways economic activity was being organized around the networks that the new telecommunication technologies had provided. This new, global economic activity was different from the past, because “it is an economy with the capacity to work as a unit in real time on a planetary scale.” 2 Having a world connected via the Internet has some massive implications. The World Is Flat Thomas Friedman’s 2005 book The World Is Flat uses anecdotal evidence to present the impact the personal computer, the Internet, and communication software have had on business, specifically the impact on globalization. Three eras of globalization are defi.
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Vision
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