Three of the dominant factors driving the rise of this borderless marketplace are accelerating technology, Increasing globalization, and changing demographics (Abraham and Knight, 2001 ; Mohamed, 2007). Accelerating, modern and efficient technologies have definitely revolutionized the way business Is conducted nowadays. For example, a range of new technologies the microprocessor, the laser, fiber-optics, and satellite which appeared In the late asses made the American economy significantly more productive than economists had Imagined.
This Is substantiated by the Federal Reserve Chairman Alan Greenshank who said that “The newest innovations, which we label information technologies, have begun to alter the manner in which we do equines and create value, often in ways not readily foreseeable even five years ago. ” Previously, insufficient timely information about customers’ requirements and location of raw materials hindered the effective functioning of businesses, resulting in larger inventories and more workers than they otherwise would need, according to Greenshank.
However, with a marked improvement in the quality of information, businesses could operate more efficiently. Information technologies also allowed for quicker delivery times, and they accelerated and rationalized the process of innovation. Furthermore, the phenomenon of Globalization has caused major growth in worldwide trade and exchanges in an increasingly open, integrated, and borderless international economy.
Considerable expansions in trade and exchanges in goods, services, currencies, capital movements, technology transfer and people have propelled this revolution. One measure of the extent of globalization is the volume of international financial transactions, with over $1. 2 trillion flowing through New York currency markets each day, and with the volume of daily international stock market transactions exceeding this enormous amount. Lastly, changing demographics worldwide are motivating businessmen to change and adapt their workforce.
According to a study done by Ernst & Young, global employers face the challenge that, despite a growing global population, they will soon have to recruit from a shrinking workforce due to an aging population. The availability of skilled workers Is actually shrinking, and no longer Just In advanced, aging countries such as Japan and Italy. Other emerging markets, such as China and Russia, are also feeling a demographic pinch. A “demographic divide” will soon arise between countries with monger skilled workers and those that face an aging, shrinking workforce.