Globalization and IT

With the development of economic globalization, the widely flow of information technologies double increases the profit of intangible capital and tangible assets .At the same time, people can utmost take advantage of information technologies by gaining higher intangible and tangible assets. For example, to install new software and database can promote its functions. Therefore, no matter tangible assets or intangible assets, either of them can complement each other.

The information technologies totally change our senses of traditional space. We are staying in an Internet Age. In the past time, we spent most of time even several months to search sources and analyze them, but now we just need to click our computer mouse. It is possible achieved that the monitoring and communication appeared in our lives. The technologies give the faster evaluation and relative reaction, which accelerate the total time. The innovation of information technologies shortens the distance of the world. IT impacts on the speed and orientation of economic globalization that it shortens the time of producing products. It stimulates the global vertical specialization and outsourcing. One of the reasons is that it continuously gives the reaction to shorten the lead time. IT leads to reduce the cost of various transactions, which includes the internal management, monitoring and controlling. And it also reduces the cost of cooperation between two companies.

As the result of IT innovation, many services have the potential international transactions such as computer software, design, quality guarantee and entertainment. Therefore, the scope of globalization is broadening. The deduction of the cost of transaction offsets the increased cost of transportation and telecommunication which is brought by the globalization. The globalization cannot leave the technologies.