Global Business and Social Technology

This essay discusses the impact of globalization and technology on global business and the role of state governments in regulating it. It highlights the need for strong legislation to ensure the sovereignty of the state and prevent the misuse of lenience by large corporate organizations. The essay also suggests the creation of an international body to monitor and assess the role of business organizations in the state.

Running Head: Global Business and Social Technology
Global Business and Social Technology
Essay

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Table of Content
Globalization- Essence................................................................................................................................... 2
Impact of Globalization............................................................................................................................. 2
The Bigger Picture........................................................................................................................................... 2
Technology as the Driving Factor.............................................................................................................. 3
References........................................................................................................................................................... 5

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Globalization- Essence
Globalization can be understood as the process of continued integration and interaction
amongst people, companies and government bodies of the participating nations in a
process which is driven by global trade and huge investment and facilitated by the use
of Information technology. In technicalities it can be seen as an economic process of
integration which has significant implication of the social and cultural aspects with
conflicts and diplomacy being a bigger role in Globalization (Costello & Costello, 2015).
Impact of Globalization
Hyper globalist are of the opinion that free economy and open markets ensure that a
large number of people participate in the development of the economy, on the other
hand other experts believe that globalization is actually Globaloney which has no effect
on the state’s role. Before the advent of globalization states encompassed highest power
with full sovereignty and played its role in governing people and putting stronger
regulation on the corporations. However in the present day, the role of the state has
changed politically, economically, socially and technologically. The change in the state
role can be attributed to the higher dependence on others (Reader, 2017). Corporate
organization these days have taken over the state and are the major contributors
behind altering their power. These large corporate organizations in the present day
form a strong lobby of the like-minded individuals and have the influencing power on
the government bodies.
According to my learning and perspective gain from the topic I think is is high time that
State government wins their power back and apply strong legislation to ensure the
sovereignty of the state along with the development of the entire state and not just few
people. Although, contrary to what is generally claimed, National governments still
holds the power to set policies and the rules of globalized economy which have to be
followed by the business organizations. The government however have a tremendous
scope of improvement in understanding the business practices and identifying the gaps
on how the businesses can overrule the government, States will become powerful. It is
at times the ineffective machinery of the states which help the businesses to grow
beyond leaps and bounds and work beyond borders (Zhang, Fung & Changong, 2017).

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The Bigger Picture
The real issue according to me is the bigger picture here is to identify which are the
countries which set the rules, which country do they favour in free trade agreements
and other policy relaxation in the global arena. There are certain countries which do
not have the necessary power to exercise their dominance and thus gets easily
dominated by international institutions (DenHond & DeBakker, 2016).
The two most significant drivers of globalization over the last two decades have been
the emergence and development of computer technology and Internet. These two are
the biggest influencers and drivers of globalization. It is the leverage provided by
Technological innovation and advancements which have made the organizations to take
advantage of more open markets and spread out its wings all over world. It is due to the
opening of the national economies that merger between businesses from different
countries and investment in equities is shaping up (Losonc, 2016).
Based on my research and learning it has been observed that developed countries are
foraying into the emerging countries for the growth and expansion opportunities,
similarly the companies from emerging economies are going abroad to leverage the
technical advancement of the developed economies. Asian countries are the biggest
beneficiaries of Globalization and the states have less power over this because foreign
current and employment opportunities are created in return. States are also focussed
on profitability in terms of taxes and increased revenues by exercising less control over
the large corporate organization. The state machines is being more and more profit
driven in the present business day, and more than anything they are inclined towards
the concept of Co-Creation. Every large multi- national corporation in the present day
lays emphasis on co-creation with the state and enters with the promise of optimum
utilization of resources along with the development of State; this ensures a win-win
state both for the state government and the business organization. Globalization can
thus be seen to have a positive effect on the development of the states by optimum
utilization of the available resources to the fullest and also generating abundant
revenue for the state(Cohen & Jaidi, 2014).

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Technology as the Driving Factor
Technology has played one of the most important roles in globalization which has
impacted the lives of people significantly. People around the world are experiencing the
growing effects of technology on their lives and are happy with the changes brought
along with it. Evolution of Internet which has transformed into one of the most
profitable business for the government is e-commerce. My learning states that E-
commerce companies with the usage of technology have made it extremely easier for
people to order goods beyond the borders. State governments have benefitted strongly
due to this revolutionary technology as it means added tax and revenue and also helped
them to provide employment to their population. State government have to quickly
adapt to the changing landscape of technology to better understand the organisation
(Steger, 2017). Creation of Cyber cells and analytics labs can help the state governments
tremendously. Once the business organization are aware that the governments are
becoming smarter and are using Technology to track the business and identify the
existing lacunae between the government and the business organization, they will start
behaving like a good corporate citizen and divert their interest towards the welfare of
the state. Automation in State government with the usage of Technology is the only way
to keep a close tab on the business activities which are leveraging technological
innovation at its forte, thus exerting their power on the business organization (Asongu,
2014)
It is not just one way transaction; it is the ability to co-create in the state which is of
huge importance to the state government. Thus, they are giving majority of power in the
hands of business organization. This has although created a lopsided effect on the
government in terms of imposing strong government penalties on these huge MNC, they
are exercising less control on these organization in the light of strong developmental
effects for the state. There is plethora of organization which still does their best in
complying with all the governmental regulation and legal compliances to ensure the
long term business sustainability of the organization, however there are certain
organization which leverages the limiting power of the state and taking undue
advantage of it (Walsh, 2016).

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I am of the opinion that to prevent the misuse of state government’s lenience, creation
and intervention of International government organization comes into play. This
international body should evaluate and assess the role the business organization is
playing in the state, and the boundaries in which it is operating. The government body
should be extremely rigid in imposing penalties and focus on ensuring the development
of the sovereign state within the boundaries of legal compliance. It is then, these big
corporate houses will wake up to reality in the presence of an external monitoring body
and solely focus on development and conducting exercise of co-creation in the
state(Bloom, Draca & VanReenen, 2016).
To conclude I would say that Technological advancement is a boon both to the country
and the business organization, but only to the extent that it is within the purview of the
government organization. This can only be ensured by levying strong penalties on the
defaulting companies, or the companies which are flouting rules created by the state
and the central government to increase their revenue. This, exploitation of the state has
to be stopped before it reaches the tipping point and destroys it sovereignty. The only
way to ensure that is to create a formidable body which works beyond the control of
any country and is mercilessly working towards a better functioning state within the
boundaries of legal and state compliances.

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References
Asongu, S., 2014. Globalization (fighting), corruption and development: How are these
phenomena linearly and nonlinearly related in wealth effects?. Journal of Economic
Studies, 41(3), pp.346-369.
Bloom, N., Draca, M. and Van Reenen, J., 2016. Trade induced technical change? The impact of
Chinese imports on innovation, IT and productivity. The Review of Economic Studies, 83(1),
pp.87-117.
Cohen, S. and Jaidi, L., 2014. Morocco: Globalization and its consequences. Routledge.
Costello, T.G. and Costello, A.O., 2015. Globalization and the United States: Empirical Evidence
Interpreted Using Propaganda Literature. Journal of Business and Behavioral Sciences, 27(2),
p.28.
Den Hond, F. and de Bakker, F.G., 2016. Boomerang politics: How transnational stakeholders
impact multinational corporations in the context of globalization. In A Stakeholder Approach to
Corporate Social Responsibility (pp. 321-338). Routledge.
Losonc, A., 2016. Global inequality: A new approach for the age of
globalization. Panoeconomicus, 63(4), p.493.
Reader, J., 2017. Reconstructing practical theology: The impact of globalization. Routledge.
Steger, M.B., 2017. Globalization: A very short introduction(Vol. 86). Oxford University Press.
Walsh, K.A., 2016. China R&D: a high-tech field of dreams. In SEEKING CHANGES: The Economic
Development in Contemporary China (pp. 191-212).
Zhang, K.H., Fung, H.G. and Changhong, P., 2017. China and the challenge of economic
globalization: The impact of WTO membership. Routledge.