4.3.2 Technological Innovation and the “Shrinking World” Notes

Technology as a Driver of Globalization

1. Imagine ordering a product online from another continent and receiving it within days.
2. This seamless experience is made possible by technology, which has transformed how we connect, communicate, and trade.
3. The concept of the “Shrinking World” refers to subjective perception in which the world feels smaller and more interconnected due to technological advances in transport and communication.
4. Not all people and all places experience the “shrinking world” equally.

Time-Space Convergence - Less Time Needed to Travel the Same Distance

1. The subjective phenomenon of the “Shrinking World” can be described in more objective terms as time-space convergence.
2. The time-space convergence refers to the reduction in the time taken to travel or to send information between two places due to improvements in transportation and communication technology.
3. This phenomenon challenges “the frictional effect of distance”, or “distance decay”, suggesting that places that are closer together are usually more likely to interact with one another, whereas places far apart are less likely to interact with one another.

Data Flows and Communication Trends

How the Internet Connects the World

1. The internet is the backbone of modern globalization, enabling instant communication and data exchange.
2. Today, over 5.5 billion people are online, with access reaching even the most remote areas.
3. Intercontinental internet connectivity is possible thanks to submarine network of fibre optic cables.

Mobile Phones Being the First Truly Global Technology

1. Almost all people in the world live in areas covered by mobile networks.
2. The most remote areas still have access to basic mobile connectivity (2G), whereas the most developed to the most advanced technology (5G).
3. Even in LICs on average 50% of people own a mobile phone.

The Rise of Social Media

1. Social media platforms like Facebook, X (Twitter), and Instagram have created global communities, allowing people to share ideas, cultures, and news in real time.
2. These platforms also serve as business tools, enabling small enterprises to reach international markets.
3. Social media are also used for manipulation, misinformation, and spread of fake news.

Bridging the Digital Divide

1. While connectivity is expanding, inequalities persist.
2. Many regions still lack reliable internet access, limiting their participation in the digital economy.
3. What usually predates connectivity challenges is insufficient electricity provision.

Transport Developments

Containerization: The Backbone of Global Trade