MY friend Ashraf Marghani runs a contracting company for construction projects in Saudi Arabia. In order to expand his business and advertise for his company, he needed a brochure for his new office in Jeddah. He decided to put an advertisement for it on the Internet. A young graduate from Bangalore, India answered the ad. Ashraf engaged him to do the job and had his brochure design ready in a couple of days as per his requirements. He simply had to get it printed and got his work done at a snap of his fingers.
Everything is simple these days, especially if you are familiar with using the Internet. Online transactions like money transfer, shipment deliveries, tracking shipments, almost everything is at your fingertips. It is a world where every citizen is turning into a global citizen. In today’s world of globalization, no place is inaccessible. A person sitting in Panama can communicate with a person in the Arctic and advertise his new brand of snowmobile which can be easily ordered and delivered to the Arctic in a short period of time. The impact of globalization has been very profitable for multinational corporations (MNCs), which are often on the hunt for cheap labor outsourcing.
A recent visit of Indian Prime Minister Narendra Modi to the United States is one example of how developing countries are eager to attract foreign investment for more profitable governance. The recent announcements of Apple, Inc. and Larsen and Toubro Company to expand in India with Mumbai as their base is just one result of such visits. PM Modi’s visit to Facebook and Google headquarters has also opened new opportunities for them to invest more in the Indian economy. Such investment helps to develop strong Internet and information technology facilities and networks in the developing Indian economy.
Outsourcing is now becoming much easier for MNCs with developing countries Pakistan, Kazakhstan, etc. providing easier trade opportunities. In order to attract Foreign Direct Investment (FDI), these states are offering many facilities to investors, such as tax-free trade, low customs duty, investor protection and ease of business establishment through governments’ online portals for registration. By hiring the country’s locals and training them for their work, the MNCs get extremely cheap labor in large numbers. This not only helps to provide employment to the youth of a state, but also leads to the growth of an economy. For instance, over the last decade, Kazakhstan’s GDP grew fourfold from $57.1 billion to $216.3 billion. These dramatic changes encourage small and large economies to allow foreign investors into their states.
With the Internet now connecting most cities, towns and suburbs, opportunities are becoming more accessible. Banking institutions like HSBC, Bank of America, Citibank, etc. have established branches in metropolitan cities of different countries for services, like analysis of financial statements, CRR and scorecard generation, market analysis and trend analysis, reconciliation statements, etc. Furthermore, consulting institutions, like Deloitte Tax LLC hire employees in India for tax returns preparation for individuals in the US, revenue and risk management, etc.
These services are rendered directly to individuals and major corporate clients in the US, UK and other countries through online portals.
Over the past five years, e-commerce has experienced a great boom. Online shopping would not have been possible without the use of the Internet. It gives more convenience to customers to buy from home. Facilities like cash on delivery, complete refund, product replacement, etc. make online shopping websites more attractive. In order to create more confidence among buyers, these sellers make use of social networking websites. Websites, such as Facebook, Twitter, Instagram, etc. have emerged as great platforms for buyers and sellers. Customers who follow big brands using social networking websites and post images wearing branded footwear, clothing and accessories, and provide reviews on social platforms, help new customers to buy with confidence. “Check-ins” have also become a trend. From Starbucks coffee shops in India to Kingdom Tower of Saudi Arabia, people like to check-in on social networking websites and share the places they visit.
A lot of paperwork is now avoidable with the use of the Internet. This is evident among students applying to Western countries for studies. Many renowned universities have put admission applications completely online.
This has helped to speed up the admission process and avoid mailing risks and charges. Governments are also encouraging universities to keep their websites updated so as to provide the latest information to students. Arab, African and Euro-Asian students who are not able to afford higher studies in Western countries are now turning to cheaper education in countries like India, Malaysia and Singapore. Similarly, students who wish to study in developed countries are easily able to access universities, like MIT, Oxford and Harvard, which were accessible only to the elite in the past. Thanks to the Internet.
The West has emerged as the master of technology in the past century. With outer space being occupied mostly by American satellites, and American companies like Apple Inc., Google, etc. dominating the world with their advanced technologies, the West has the huge potential to benefit its economy. As can already be seen today, Western economies are among the world’s most developed. This could not have been possible without the effort of Western governments. By exchanging technology with the rest of the world, Western entrepreneurs earn huge profits. A clear example is a recent initiative of Facebook’s Mark Zuckerburg to launch a satellite into orbit to connect millions of people by delivering the Internet from space. The Internet provides a plethora of opportunities for individuals and institutions. It is playing a vital role in benefiting the Western world with a horizontal exchange of services. It is helping to increase the GDP of Western countries by making online and offline education, business, and travel, more attractive and accessible.
There is always a need for governments to regulate the markets because often enterprises aim for huge profits and in turn lose over quality. Be it education or trade, owners always wish to achieve high targets thereby compromising on quality compliance. These issues can only be dealt with by the intervention of governments in the market so as to regularize global trade. While developing countries have to provide easier access to foreign investors, developed countries should ensure that these giants do not deteriorate global resources.
The overall impact of the Internet on the lives of individuals has been tremendous. Internet connections are easily available through telecom service providers over smartphones, tablet PCs, laptops and desktops. While people find it easier to communicate, they do not realize that they are becoming dependent on it.
Lifestyles have changed over the past decade. Smartphones are getting cheaper and are becoming more of a status symbol. However, overdependence on the Internet and smart devices will have dangerous consequences in the near future. With people now relying on virtual friends and digital communication, social relationships are losing importance. People do not realize that the Internet is making obscene and pornographic content easily available to people of all age groups. Since there is no foolproof procedure to verify the age of users, inappropriate content is now available to any user. Even in countries where pornography is banned, obscene content is still available to users. There is a need for governments to monitor websites so as to avoid spreading socially inappropriate content in the country.
Another problem that is being widely criticized throughout the world is the surveillance of peoples’ activities over the Internet. The scanning of emails and online chats using applications such as Soma and WhatsApp, monitoring websites used by individuals, etc., is a major intrusion into the privacy of a person and is not acceptable. Only in case of security concerns and suspicion should such action be taken.
The Internet has its pros and cons, and at times people do not realize that they are making their private information public on social networking websites, without realizing that it can be misused and easily accessed by any hacker. Logging into accounts by connecting to open Wi-Fi networks can easily allow other individuals to access your data. While the Internet is making lives easier, it is a highly dangerous geyser which if used cautiously can benefit us, or be life threatening otherwise.
Mohammed Abdul Majid,
Purdue University Northwest
Hammond, Indiana,USA
