MScinFinanceandInternationalBusinessAuthorPawelLuk.doc

MSc in Finance and International Business Author: Pawel Lukasz Jelinski Academic Supervisor: Jens Kaalhauge Nielsen How Internet has changed globalization Aarhus School of Business August 2010 Problem statement 3 Introduction 3 1. Defining 4 2. Reviewed history of Globalization 6 2.1. Before fifteenth century 7 2.2. Fifteenth to late eighteenth century 8 2.3. Nineteenth to twentieth century 12 2.4. Twentieth century 13 3. Technologies which powered Communication Revolutions 15 4. Changes caused by Internet – an introduction 19 4.1. New Economy, a comparison with previous economies 20 4.2. New Economy changes in numbers 23 4.3. What’s new in business area? 25 4.3.1. Wider, quicker and easier globalization 26 4.3.2. Costs reduction for companies 26 4.3.3. Robust competition 29 4.3.4. Diminishing government barriers to globalization 29 4.3.5. Need of global market participation 30 4.3.6. New or re-engineered products and services 30 4.3.7. Deduplication of physical presence 33 4.3.8. Internet Effects on global marketing 33 4.4. Computer aided human network 36 4.4.1. New distribution of power 37 4.4.2. Difficulties in legislature system 39 4.4.3. Unrealized prophecies in politics 43 4.4.4. Social structure is not very different 44 4.4.5. Culture 49 Summary 50 Literature 51  Problem statement The aim of this paper is to explore how Internet has changed globalization. What are the areas where it reinforced the process of convergence, which changes are seen positive and which negative from the society and business point of view. The secondary goal is to compare ‘Internet Economy’ with ‘Older Economies’. Introduction Internet is still underestimated in today’s economy and treated as a secondary medium. While running little consulting company I have surveyed many different CEOs and marketing directors trying to sell them a new website. For some of them possessing a professional website was useless. Actually the only use of ICT for them was e-mail.