Information Technology and Global Economy.

Information Technology and Global Economy.

Information technology in the Global economy has brought out several exciting concepts within its course. There have been numerous assumptions regarding the potential effects of trade liberalization on economic performance taken for granted. Particularly the ones justifying the positive impact for innovation-related with more comprehensive integration into the global economy. Indeed, it is expected that due to reductions of trade barriers to foreign direct investment, nations would increase innovation via multiple channels, like economies of scale through better specialization, enlarged market size with true comparative advantage and learning through exporting and importing. Meanwhile, some are not meant to be taken for granted. For instance, trade liberalization was a global phenomenon influencing the relative demand and supply of services and goods. In such a context, China’s irruption into the global economy and strong demand for natural resources induced a challenge of bad specialization that can lead to developing regions to specialize in supplying commodity products with low technological chances. There are other reasons why trade liberalization would bring challenges to the innovation of the global economy, Alvarez et al,,(2019).

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