The Impact of the Internet
on Globalization
Makiko Miyashita
COM538 Evolution and Trends in Digital
Media Technologies
University of Washington
December 9, 2003
Introduction
Purpose
To examine the impact of the Internet
on globalization from a global
business standpoint.
 Thesis Statement
The Internet has significantly affected
globalization.
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Topics
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The Definition of Globalization
Accelerator of Globalization
The Changing Demographics of the Global
Economy
Growth of Global E-Commerce
Uses and Gratifications: B2C Web Site
Electronic Supply Chain
The Next Generation of the Internet
Future Customers Relationship
Conclusion
What is Globalization?
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The act, process, or policy of making something
world wide in scope or application (The American
Heritage).
Globalization refers to the process by which
transnational forces cross and ignore borders – in
some ways weakening and diminishing states
(Clemens).
Globalization is about more than economics.
America’s purpose must be to bring the world
together around democracy, freedom, and peace
and to oppose those who would tear it apart
(President Clinton).
Globalization can be defined as the process of
integrating the world economically, politically and
culturally.
Accelerator of Globalization
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Accelerators
Global communication, the standardization of world time,
and global competitions such as the Olympics and the
Nobel Prize
The spread of new communication and information
technologies
The end of the cold war-the collapse of communism
Accelerators from the perspective of
economic globalization
GATT (General Agreement on Tariffs and Trade)
WTO (World Trade Organization)
The Changing Demographics of
the Global Economy
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World output
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The U.S. was the dominant industrial power in the early
1960s.
The U.S.: 40% of world output in 1968 but 20% in 1997.
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Foreign investment
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U.S. firms: 66% of foreign direct investment in the 1960s.
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Multinational enterprise
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The U.S. and U.K.:48% and 18% of the top 260 in 1973
The U.S. and Japan: 32% and of 25% of the top 500
multinationals in 1997.
World order
A series of democratic revolutions occurred and swept the
communist world between 1989 and 1991.
Growth of Global E-Commerce
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Global B2B e-commerce
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will reach $1.41 trillion in 2003.
will grow at a rate of 162% per year.
will exceed $2.5 trillion by 2004.
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Global B2C e-commerce
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will grow at a rate of 185% per year.
will reach $400 billion by 2004.
Uses and Gratifications
Applications to web sites for B2C e-commerce
Dimensions
Motives/Gratifications
Informationseeking
To find specific information/to research topics
I am interested in; as a source for general
information; to learn how to do something
Consumer
informationtransaction
To get specific information about products I
am thinking about buying; to purchase
products; to get specific information for
making decisions
Surveillance
To learn about what could happen;
to get news
Social
communication
To meet new people/to be with others; to chat
with friends/others
Entertainment
To relax/to have a good time
Electronic Supply Chain
Traditional Supply
Chain
Electronic Supply Chain
Technology
Electronic Data
Interchange (EDI),
fax, telephone
Internet (and EDI)
Relationships
with Partners
Long-term
relationships
Technology-enabled
relationships
New Business
Opportunities
Difficult to increase
Ease to increase
Management
Costs
Expensive
Inexpensive
Therefore E-supply chain organization will put less relative
value on partnerships and strategic alliances in the future,
when compared to traditional supply chain organizations.
The Next Generation
of the Internet
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Fast
Everywhere
Always on
Intelligent
Natural
Easy
Trusted
Future Customers Relationship
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More power to customers
24/7 customer service
Customized web site
Conclusion
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The Internet has significantly
affected globalization.
The needs of the globalized world are
the accelerator of Internet-related
technologies.