The Impact of the Internet on Globalization

1
The Impact of the Internet on Globalization

• Makiko Miyashita
• COM538 Evolution and Trends in Digital Media
  Technologies
• University of Washington
• December 9, 2003

2
Introduction

• Purpose
• To examine the impact of the Internet on
  globalization from a global business standpoint.
• Thesis Statement
• The Internet has significantly affected
  globalization.

3
Topics

• The Definition of Globalization
• Accelerator of Globalization
• The Changing Demographics of the Global Economy
• Growth of Global E-Commerce
• Uses and Gratifications B2C Web Site
• Electronic Supply Chain
• The Next Generation of the Internet
• Future Customers Relationship
• Conclusion

4
What is Globalization?

• The act, process, or policy of making something
  world wide in scope or application (The American
  Heritage).
• Globalization refers to the process by which
  transnational forces cross and ignore borders
  in some ways weakening and diminishing states
  (Clemens).
• Globalization is about more than economics.
  Americas purpose must be to bring the world
  together around democracy, freedom, and peace and
  to oppose those who would tear it apart
  (President Clinton).
• Globalization can be defined as the process of
  integrating the world economically, politically
  and culturally.

5
Accelerator of Globalization

• Accelerators
• Global communication, the standardization of
  world time, and global competitions such as the
  Olympics and the Nobel Prize
• The spread of new communication and information
  technologies
• The end of the cold war-the collapse of communism
• Accelerators from the perspective of economic
  globalization
• GATT (General Agreement on Tariffs and Trade)
• WTO (World Trade Organization)

6
The Changing Demographics of the Global Economy

• World output
• The U.S. was the dominant industrial power in the
  early 1960s.
• The U.S. 40 of world output in 1968 but 20 in
  1997.
• Foreign investment
• U.S. firms 66 of foreign direct investment in
  the 1960s.
• Multinational enterprise
• The U.S. and U.K.48 and 18 of the top 260 in
  1973
• The U.S. and Japan 32 and of 25 of the top 500
  multinationals in 1997.
• World order
• A series of democratic revolutions occurred and
  swept the communist world between 1989 and 1991.

7
Growth of Global E-Commerce

• Global B2B e-commerce
• will reach 1.41 trillion in 2003.
• will grow at a rate of 162 per year.
• will exceed 2.5 trillion by 2004.
• Global B2C e-commerce
• will grow at a rate of 185 per year.
• will reach 400 billion by 2004.

8
Uses and Gratifications

• Applications to web sites for B2C e-commerce

Dimensions Motives/Gratifications
Information-seeking To find specific information/to research topics I am interested in as a source for general information to learn how to do something
Consumer information-transaction To get specific information about products I am thinking about buying to purchase products to get specific information for making decisions
Surveillance To learn about what could happento get news
Social communication To meet new people/to be with others to chat with friends/others
Entertainment To relax/to have a good time
9
Electronic Supply Chain
Traditional Supply Chain Electronic Supply Chain
Technology Electronic Data Interchange (EDI), fax, telephone Internet (and EDI)
Relationships with Partners Long-term relationships Technology-enabled relationships
New Business Opportunities Difficult to increase Ease to increase
Management Costs Expensive Inexpensive
Therefore E-supply chain organization will put
less relative value on partnerships and strategic
alliances in the future, when compared to
traditional supply chain organizations.
10
The Next Generation of the Internet

• Fast
• Everywhere
• Always on
• Intelligent
• Natural
• Easy
• Trusted

11
Future Customers Relationship

• More power to customers
• 24/7 customer service
• Customized web site

12
Conclusion

• The Internet has significantly affected
  globalization.
• The needs of the globalized world are the
  accelerator of Internet-related technologies.