American Journal of Applied Sciences 4 (4): 188-191, 2007

ISSN 1546-9239
© 2007 Science Publications

International Economic Relations and

Information Communication Technologies (ICT) Use:
Economic Globalization via Economic Digitalization
Athanasios I. Bozinis
Department of Marketing and Operations Management, University of Macedonia
156 Egnatia Street, 540 06, Thessaloniki, Greece

Abstract: The definition of globalization refers to the unification of the countries international
economies, as an even system distinctive for its intense mutual reliant association. Globalization does
not demand natural presence of the countries in order to conduct product exportation or importation,
since all economical procedures may be achieved through the propagation of information and financial
capitals. The scope of this research was to analyze the relation between economic globalization and the
use of Information and Communication Technologies (ICT). This article argues that the countries that
absorb modern information and communication technologies may be developed and function as active
parts of the international economical system and part of the economic globalization process.

Key words: Globalization, International Economic Activities, Information and Communication

Technologies (ICT)

INTRODUCTION By the end of the Cold War the prevalence of

liberalism to the international economical affairs and
The use of new technological achievements in the global trade, was fully escorted by the procedure of
field of economy resulted mainly in the transfer from a globalization in a sense that defined the increased
seigniorial society to the society of the trade capitalism procedure of unification of international economies[4].
during the 16th, 17th and 18th century, which was later, In English, the term with its current significance
proved to be the industrial capitalism[1]. The invention appeared for the first time at Webster dictionary (1960),
and wide use of steam brought about the onset of the whereas in the bibliography of social sciences the first
Industrial Revolution in the end of the 18th century and to mention the term “globalization” in the beginning of
incurred great changes, regarding the methods of the 70s' were the sociologists, who connected the term
financial transactions, social affairs and policies with the meaning of “global system” of Wallerstein[5].
amongst countries. A very distinctive example is Great It is not an offspring as a meaning, since it appears for
Britain, whose boost of industrial production created the first time in the work of many thinkers during the
and established Pax Britannica that collapsed after the 19th and 20th century by economists, such as Karl Marx,
end of World War II[2]. by sociologists like Saint – Simon and by geopolitical
The invention of steam engines and other industrial scientists like Mac Kinder, who investigated the way in
innovations created new economical and social theories which the modern way of life unifies the world[6].
about ways of producing, delivering and consuming The inspirator of the term was the American
goods, which later on affected global political stage and economist Theodore Levitt in 1983, who used it to
countries' affairs, the spread of production factors and describe the congruity of the markets in a global
scale[7], while the ultimate use of the term was mostly
the market’s function, based on the two economical
adopted during the second half of the 80s' when the
theories appointed by Marxism and Capitalism[3]. After huge wave of the instant foreign investments was
the end of WW2 the adoption of these economical observed on behalf of the multi – national enterprises[8].
theories by great countries resulted the beginning of
Cold War, that lasted almost fifty years and divided the Theoretical background: Definitions and problems
international system into two parts – the capitalist and of globalization: The word globalization is initially
the socialist. interpreted and analyzed as the central part of the
theory that describes the global politics while at the
Corresponding Author: Dr. Athanasios I. Bozinis, International Relations Scientist – Economist, Visiting Lecturer,
Department of Marketing and Operations Management, University of Macedonia, 156 Egnatia
Street, 540 06, Thessaloniki, Greece
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same time is an objective that holds constant academic Table 1: Current problems of globalization
analysis. The meaning does not hold a unique or * There is not a unique and acceptable definition appointed by the
academic community
unconventional definition[9]. * There is not a specific and acceptable historical background in
At Penguin Dictionary of Economics the term order to manifest the globalization process
globalization is analyzed as “a geographical meaning * It cannot be efficiently measured with multiple indicators
* Its various mutual reliant patterns impede the effort to analyze
with intense economical procedure throughout and control the process so as to benefit both countries and
international and cross – national level. Globalization citizens.
does not demand natural presence of the countries in
order to conduct product exportation or importation, According to Joseph Nye there are these patterns of
since all economical procedures may be achieved globalization, listed below:
through the propagation of information and financial * Environmental mutual reliant association
capitals”[10]. Joseph Nye interprets the term of * Military globalization
* Social globalization, which he describes as the
globalization as: “The result of both the technological
expansion of people, ideas and civilization.
progress and the governments' politics that have limited * Religious globalization
the obstacles in international transactions”[11]. * The political globalization that is apparent with the
Globalization for Pascal Boniface “Is the ban of expansion of constitutional laws and with the
distances grateful to modern technologies, either we incorporation of the international legislations and
talk about communications or transportations. Not only rules of the countries.
does it concern the economical atmosphere, but it * Finally, the economic globalization[16].
approaches people in their everyday life, as well”[12].
Thomas Friedman claims that “Globalization means the Economic globalization via economic digitalization :
expansion of capitalism and the free market all over the The economic side of globalization and its
consequences possess the leading role not only within
countries, it has its own rules and it is based on the academic discussions, but within the whole
privatization of economy”[13] international people's community. The definition of
Today globalization (and its numerous patterns) economic globalization refers to the unification of the
remains a process to be revolutionized, however, the countries' international economies, as an even system
issues regarding the effective use of the definition and distinctive for its intense mutual reliant association that
its meanings still remain unsolved (Table 1). Even holds the most significant feature; the theory of the
though the international academic and investigative economic domino. According to Jeffrey Sachs,
community has dealt with the issue of globalization in Professor of International Political Economy at Harvard
depth, it has not come up with an acceptable definition University, “International economies are constantly and
gradually being fulfilled through four basic ways:
or a historical flashback that will be accepted by the
through trade, financial flows, production and a certain
whole scientific community[14]. A fundamental problem web of conditions and institutions”[17]. The two most
of globalization is the use of the its own definition: powerful forces that forward the economical
most countries of the southern hemisphere (Africa, globalization “process” and at the same time being
Latin America and the developing countries that belong forwarded by it are the liberal economy and the use of
to the third world) are away from the globalization ICT[18].
process, thus the definition is not effective. Instead off As Tim Berners Lee claims “The Internet is
globalization many academic teams resort to the use of undoubtly breaking down barriers to which we used to
internationalization. rely on for centuries regarding our self – assessment
Another significant problem of globalization is the and self – protection, still it may raise new ones”[19].
The use of ICT to international economies results in the
fact that it cannot be efficiently absorbed in its total
digitization of financial operations, especially those in
through indicators due to its multiple patterns. A way to the stock markets, as well as the 24 hour connection
measure globalization was given by the Global Policy and operation of the international stock markets. The so
Forum, which mentions that it is impossible to evaluate – called electronic flock by Thomas Friedman is an
and use indicators so as to depict a demographic example of the global capital with an electronic pattern:
change, the economic integration, the use of “Nowadays, the global market is an electronic flock
technology, the digital divide and finally the cultural that consists of anonymous share investors, securities
change[15]. and exchanges that are connected via screens and
networks.

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They consist of exchange traders, immense mutual and place in stock markets will be conducted via the
pensioning funds, insurance companies, exchange Internet by people sitting in front of their computer”[27].
banks and civilian investors”[20]. For Paul Kennedy, the
fulfillment of global economy and the globalization CONCLUSION
process are closely connected with another two facts:
“The turning off that occurred to the international stock The use of ICT is the key to access the
international economic progress and procedures. The
markets and the revolution to international
countries that absorb modern communication
communications as a result of the new technologies. technologies may be developed and function as active
Without the increase of the enforcement applied by the parts of the international economical system. Its
electronic computer systems, software, satellites, procedure gains weight and importance with the use of
optical fibers and high speed electronic transmitter, digitization of financial exchanges. The reduction of
international markets would not be able to function as a access, process and transmission cost of economical
whole unit”[21]. information, the function of global stock markets in
According to Joseph E. Stiglitz, the unification of Real time on a 24 – hour basis is the most fundamental
international economies “Occurred by the immense element for the economical unification of the term and
reduction of transportation and communication the potential to expand and fulfill the globalization
process. The enduringly increasing use of ICT within
expenditure and by the collapse of technical barriers
the Information Society will digitalize the international
that were an obstacle to the flow of the goods, services, financial and economic transactions and ordinary
capitals, knowledge and at a lower degree of people commercial operations. In this way, the economical
through borders”[22]. Samuel P. Huntington claims that unification of the world and international economies
“State governments have lost their ability in a major will be empowered.
level to control cash flow in and out of their country,
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