QUESTION 3: How have changes in technology contributed towards the globalization of markets and of production ? Would the globalization of products and markets have been possible without these technological changes ? ANSWER 3 - for reference see Hill, Chapter 1, pp 13 & 14: Technological change has made globalization a reality. Major advances in communication , information processing , and transportation have brought the world closer together . The development of the microprocessor is perhaps the single , most important innovation as it increased the amount of information that could be processed by individuals and firms . The Internet has facilitated the creation of a 24/7/365 market place where information is available in real time . Advances in transportation have enabled firms to take advantage of the savings associated with dispersing production to low cost production locations Advances in communications have helped create a global culture of sorts , and the emergence of a global market for consumer products . Thanks to technological change , firms today can locate facilities wherever in the world it makes the most sense , coordinate activities among facilities , and ship products to customers worldwide more cost effectively than at any time in the past . Consider the Financial Markets . Containerization has revolutionized the transportation business , significantly lowering the costs of shipping goods over long distances . Emerging in the 1970s and 1980s , containerization spelled an end to the costly and lengthy business of loading and unloading ships , trucks , and trains . Cost savings associated with containerization are significant. Between 1920 and 1990, average ocean freight and port charges per ton fell from $95 to $29 . Air transportation saw a similar decline , as did trucking . (Hill , 2009 ., p.14 )