Module 2
Globalization and the Digital Divide
Learning Objectives
• 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 the three stages
of the digital divide.
What Is Globalization?
• Globalization refers to the integration and
connection of goods, services, and culture
among the nations of the world.
• Advances in telecommunication and
transportation technologies accelerated
globalization.
• The Internet has made all nations
next-door neighbors.
The Internet is Worldwide
The Network Society
• The ‘network society’ means we are all
connected on a global scale.
• “it is an economy with the capacity to work as
a unit in real time on a planetary scale.”
(Castells, 2000).
The three eras of globalization
• Globalization 1.0
• Globalization 2.0
• Globalization 3.0
Globalization 1.0
1492 - 1800.
• Centered around countries.
• Driving Forces:
– Horsepower, wind power, steam power
And how creatively a country used them.
• The world shrank from
“large” to “medium.”
Globalization 2.0
1800 - 2000.
• Interrupted by the two World Wars.
• Driving Forces:
– Multinational companies;
– Internet standard protocols (1980s) allowed
various ‘nets’ to talk to each other and form
the Internet
• The world shrank from
“medium” to “small.”
Globalization 3.0
Current period (2000 - ?)
• Driving Forces:
– Convergence of the personal computer
– Fiber-optic internet connections
– Software allowing small groups and individuals to
go global.
• The world has shrunk from
“small” to size “tiny.”
Globalization 3.0
Driven by Information Technology:
• The graphical user interface (GUI) for personal
computers (icons) – no coding needed
• The Internet infrastructure – fiber optic cable
made it fast,
• Standards were shared for email, websites and
communication
• Open source - shared apps
Globalization 3.0
Driven by Information Technology (continued):
• Mobile technologies
• The introduction of software to automate and
integrate business processes.
– People could work together more easily
– Different software packages and databases could
integrate with each other more easily.
• i.e. payment processing systems
• shipping calculators
Advantages of Global Firms
The new era of globalization allows any business
to become international.
• Advantages of global firms:
– The ability to locate expertise and labor around
the world.
– The ability to operate 24 hours a day – offices in
different time zones
– Larger market for their products.
Challenges of Global Firms
Each Country has:
• Labor laws and regulations.
• Legal restrictions.
• Language, customs, and preferences.
• International shipping procedures
• Infrastructure differences
(ie internet speed – next slide)
Infrastructure Differences
Test your internet speed at [Link]
Infrastructure Differences
Test your internet speed at [Link]
The Digital Divide
The Digital Divide defined:
• The separation between those who have
access to the internet and those who do not.
• The ‘do nots’ are usually those from low-
income households, senior citizens, single-
parent children, the undereducated,
minorities, and residents of rural areas.
(ACM Code of Ethics)
The Digital Divide
• The digital divide can occur between
countries, regions, or even neighborhoods.
• Solutions to the digital divide have had mixed
success over the years.
Examples
– One laptop per child
– Cyber “café” (Coffeehouses with
Internet services)
Digital Divide
Jakob Nielsen broke the digital divide into
three stages:
– The Economic divide
– The Usability divide
– The Empowerment divide
Economic Divide
Some people can not afford to have a computer
and Internet access.
• Hardware is cheaper today than in the past.
• In the future computers will be cheaper and
more powerful (Moore’s Law.)
• Its believed that cost is not going to be an
issue in the future.
Usability Divide
• Technology is complicated for some people. Ie.
low literacy and senior persons.
• Differences between “digital natives” and
“digital immigrants.”
• Even for those who can use a computer,
accessing all the benefits is beyond their
understanding (ie MS Word can make Table of Contents).
• We know how to solve this problem,
but the solutions is not cost-effective
Empowerment Divide
• Very few users truly understand the power that
digital technologies can give them.
– Researchers report that very few people contribute
content to the Internet.
– Few users use advance search
• Many people limit what they can do online by
accepting the basic default settings of their
computers
• Users do not work to understand how
they can truly be empowered(ie cookies).
• This is the most difficult to solve.
Summary
• Explained the concept of globalization.
• Described the role of information technology
in globalization.
• Identified the issues experienced by firms as
they face a global economy.
• Defined the digital divide and explain Nielsen’s
three stages of the digital divide.
Quick Review – True or False
• Globalization means country borders are more
defined and harder to cross.
• Due to internet protocols, information
technology has slowed down globalization.
• A driving force for Globalization 1.0 was steam
power.
• A driving force for Globalization 3.0
was the internet.
Quick Review – True or False
• One advantage Global firms have is the ability
to operate 24 hours a day.
• One challenge Global firms have is various
Labor laws and regulations.
• The Digital Divide is defined as the divide
between Apple users and non-apple users.
• The Digital Divide hardest to fix is the
Economic divide.