Technological Trends

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1. What are some of the technological advances in telecommunications and transportation that have impacted global business in the last decade? How have these technological advances affected regional economic development? What trends can be anticipated in these areas?

One of the most important technological advances in telecommunications has been the advancements in the field of information technology which has revolutionalized the way people communicate today, especially over long distances. The advent of internet had considerably reduced the cost of communication by providing many alternatives to traditional form of communication, such as email, messenger and most importantly, Voice Over IP Phones. Such tools have not only reduced the cost of communication over long distances much quicker, but the reduction in costs have enabled the people to communicate with each other more frequently than ever before.

Another innovation which has made the task of communication for people much easier, especially for those who are always roaming or moving from one place to another, is the mobile phone. The mobile phone has allowed people to remain in touch with other people from anywhere in the country or the world and has reduce the communication problems associated with mobility. Now, one does not need to sit in the confinement of his office to receive all important communications as a mobile phone can keep one connected all the time.

Thus, increased and more frequent exchange of information between people, especially for business purpose, has significantly enhanced the quantum of international trade and globalization. It has enabled businesses located in developing or even underdeveloped countries to foray into global markets due to reduction in telecommunication costs. It has made all round development of nations, regions and economies possible by allowing businesses s and countries to come together.

Similarly, significant advancements in transportation due to advent of faster and cheaper means of transportation like transcontinental airlines, bullet trains and express highways have shrunk the world and have made it a much smaller place to live in. Journeys between two nations, which were unimaginable before due to significant costs and time involved, are like a piece of cake today as rapid advancements in the transport industry has made it possible to travel between two nations or two continents much more cheaper and faster.

Just like advancements in telecom, developments in transportation has also resulted in increased interaction between nations, thereby contributing to increased trade and developments for various countries and regions. Even in terms of regional economic development, the improved rail and road network between different countries in a region has led to increased trade and dependency upon each other and in some cases, can be cited as one of the reasons for the formation of regional trading blocs. For example, the countries in Europe have excellent road and rail connectivity with each other, which makes the formation of trading bloc like European Union much more successful.

The trends anticipated in these areas in the future clearly state that the cost of telecommunication and transportation will continue to come down and will definitely continue to facilitate the international trade and commerce, exchange of information and cooperation between different countries in the long run, thereby reducing the disparities between different regions and countries around the world. Such growth in both the areas will continue to foster economic cooperation and development of countries within a single region and will ...