Globalization and the InternetPosted by DJ Harris in Business
Globalization is now, and forever will be, an ubiquitous topic in most political, economic, and social forums. The term “globalization” is defined by Merriam-Webster as “the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets.” The latter of the traits has emerged as the strongest point of contention due to outsourcing. Markedly, Fortune Magazine recently published a story on a new “insourcing” trend. It’s a trend so new that my spellchecker doesn’t even recognize the word.
Though “free trade” and “free flow of capital” are explicitly declared in the definition of globalization, free flow of information is somehow absent. The role that the Internet has played in globalization and the development of the global economy cannot be overstated. Continued advancements in the Internet and Telecommunications have literally connected suppliers, vendors, sellers, and buyers that historically had been segmented by barriers such as geography and time zones. What this phenomenon has come to shape is the global marketplace, where products from across the world compete for the preference of an endless consumer base. With an increase in competition comes an increase in the consumer expectations for quality and performance. As a growing company with a significant international client base, SoftLayer continues to strive towards providing quality solutions and support that exceeds our customers’ expectations.
Though the Internet has helped to fuel the soaring growth of the global marketplace in the recent decade, there are still many obstacles that impede its progression. Most of the hazards have a legal connotation surrounding hot-button issues such as Intellectual Property, Copyright Infringement, and most notably in the hosting world, Abuse (bandwidth theft, computer viruses, fraud, etc.). It’s certainly enough to keep our abuse department busy as international standards and governing policies are fortified to help combat these areas of concern.
This observation merely skims the surface of globalization and the development of the global economy as there are many arguments both for and against its advancement. At the forefront or behind the scenes (depending on your vantage), you will find the Internet. It has been stated that “the Internet is the backbone of the global economy” with evidence cited in the form of web transactions going from “virtually nothing in 1994 to nearly $657 billion in 2000.”1 Care to guess what that number is now? As SoftLayer furthers its commitment to quality, our objective is to continue to strengthen the platform from which our domestic, international, and multinational customers launch into and compete in the global marketplace.
1Charles W. L. Hill, International Business: Competing in the Global Marketplace (Irwin/McGraw-Hill; Fifth Edition, 2004), p.13.