Question

What are the implications of (digital) globalization for international and domestic companies?

Answer 1

Earlier in the 19th century globalization was all about financial services, goods and other services, while in the 20th century globalization has a different role to play in the form of digital globalization where data and information flows rapidly. Digital flow of data and information are generating higher economic value than international trading of services and goods. It includes Business Process Outsourcing (BPOs), Knowledge Process Outsourcing (KPOs) etc where the work in done else where where the cost of workforce is comparitively lower. It increases the overall effeciency in the work. Business has more economy of scale and now has access to scare resources and cheaper resources. Social media, online banking services, e-books, games, audio and video services are some of the examples.