The paper "Factors Influencing Shift toward a Global Economy" is a perfect example of a macro and microeconomics coursework. There is little doubt these days that the world is shifting towards a global economy and new geographies of economic activities are developing. Over the years, the world economy has been becoming increasingly interdependent. The globalization process has accelerated due to a number of factors, with the most important being an advancement in technology, trade liberalization, and international relations. There is enough evidence, from countries of different regions and different sizes, that as the process of globalization increases, their citizens highly benefits in form of accessing better-paying jobs, a variety of commodities, improved health, and lower prices.
It is not a coincidence that over the past, most of the countries have been working on opening up their economy. The present paper set out a discussion on the role of advancement in technology, trade liberalization, and international relations in developing a global economy as well as setting new geographies of economic activities. Technological innovation Putting in mind that different governments have played a vital role in supporting the growing integration in several areas, the increasing growing interdependence has gained a great impetus from the technological advancement, which has facilitated to a reduction in communication and transport cost.
According to the research conducted by Faitaihi (2014), technological advancement has drastically transformed the ease, quality, speed, and quantity of international flow of information and physical communications. In particular, multimedia communication and information technology are producing an acceleration of the change and shrinkage of the distance. Several studies suggest that over the past decades, communication and transportation cost has been declining drastically.
The end of state monopolies leading to increased competition, especially in the telecommunication sector has also attributed to the sharp drop in communication costs. Zhibiao (2012) observed that over the last three decades, there are two developments, which had been key to the globalization of information flows. These include computers, which have invaded thousands of households and, development and emergence of internet technologies. The former indicates that the role of computers has increased dramatically, serving not only as a tool for business and state organizations but also serving as a household electronic appliance for retrieving and processing information, communication, entertainment, and education.
The latter bolsters a great leap in human and technical ability in assessing, interpreting, and using information. These two inventions have made the world appear as a smaller place. Computers have played an important role in increasing the number of internet users. Due to the increasing use of the internet, most of the organizations seeking to expand internationally have found online platforms as a convenient and cost-effective channel to market their products. Through the internet, one can be able to conduct research on the foreign market.
Such researches are important when making a decision on whether or not to invest in a certain region/country. Nowadays, it is possible for a number of individuals to hold meetings from different geographical locations. With the new payment methods, transactions among inhabitants from different countries have increased. For instance, people can be able to buy goods from Amazon and eBay, irrespective of the country therein as they only need a credit card or PayPal to pay online. Before such innovation, people were forced to travel to shopping stores.