Summer-21

Course Title: - Economic Geography

Course Code: - BUS-3202

Submit To: -
Ms. Mnika Mehjabeen Tisha
Lecturer
Department of Business Administration
Bangladesh University

Submit From: -
Md. Abdullah Al Muttaki
ID: - 201911152055
Batch: - 52
Future of globalization after the growth of industry 4.0.

Globalization: -
Globalization means the speedup of movements and exchanges (of human beings, goods, and
services, capital, technologies or cultural practices) all over the planet. One of the effects of
globalization is that it promotes and increases interactions between different regions and

populations around the globe.

Technological developments, both in and outside of factories, have impacted the manufacturing
industry's globalization the process by which businesses and other organizations develop
international influence or start operating internationally. Ever since the first industrial revolution,
industrialization has impacted international business. In particular, advances in transportation and
telecommunications have had a huge impact. With increasing trade and communication, more and
more companies are extending their reach across land and sea.
Industry 4.0

The Fourth Industrial Revolution (or Industry 4.0) is the ongoing automation of traditional
manufacturing and industrial practices, using modern smart technology. Large-scale machine-to-
machine communication (M2M) and the internet of things (IoT) are integrated for increased
automation, improved communication and self-monitoring, and production of smart machines that
can analyze and diagnose issues without the need for human intervention

Every major industrial and technological change, the characteristics of globalization have been
altered. In 2011, the term Industry 4.0 was introduced by the German government and Siemens.
Industry 4.0 shifts manufacturing away from analog and mechanical technologies and toward all
things digital.

information technology and operational technology converge, companies are beginning to find
new ways to connect. Data collected from suppliers, customers and the enterprise can be aligned
with detailed production information, which means processes can be fine-tuned in real-time. The
digital and physical worlds have become irrevocably linked, with machines, systems and people
able to exchange information and automatically adjust. Industry 4.0 is not only revolutionizing
manufacturing processes but also having a powerful impact on the model of globalization, by
changing the workforce and increasing the ease of access to services.
Impact of Globalization and Industry 4.0 on Training and Re-Training of
Employees in Developing and Nations.
Industry 4.0 (fourth industrial revolution) is not an initiative to secure the survival of developing
countries. It is rather a shift towards the new and contemporary production method leading to
further globalization for the small and medium organization crowding the developing and
underdeveloped nations. Organization operates in an enabling environment to create a balanced
ecosystem that can boost productions on their global capabilities and potentials in nations below
the standard. This a period of major change, McKinsey defines it as the next phase in digitization,
driven by a sharp rise in data volumes, computational power and connectivity, the emergence of
analytics and business intelligence capabilities, new forms of human machine interaction and
improvements in transferring digital instructions to the physical world, such as advanced robotics
and 3D printing (Markus & Andreas, 2013). There is a positive direction that will lead to increase
in productivity, innovation, and profitability. Industry 4.0 is huge and changes will very drastic,
no organization wants to be met unprepared. It imperative for the organization especially in the
line tagged developing and underdeveloped nations to be adequately prepare by developing the
skills of her labor via training and retraining. The diagram below shows the impact of training and
re-training on the 21st century employee:
The greatest challenges to growth outlook in the era of Industry 4.0

The focus on technology-related risks is not surprising, considering the possible repercussions of
a cyber-attack. At the same time, it is imperative for companies to stay on the cutting edge of
technologies, as those who fall behind become obsolete. But while ROI on technology investing
has been elusive in the first years of digital transformations, our survey shows that 75% of
executives say they’ve seen financial payback (i.e., ROI) from their technology investments, and
74% say they’ve seen non-financial payback in the form of things like brand equity and improved
customer experience. Not surprisingly, investing in technology will continue to be the top way to
grow over the next year (63%).
International Competition: -
Increased connectivity means that organizations must now be competitive on a global scale and
cannot rely on their physical location to win business. This will require companies focusing on
meeting ever-changing consumer demands. Keeping manufacturing and production flexible and
incorporating automated technologies can cut production times and allow organizations to respond
quicker, increasing competitive advantage.

Logistics has come a long way since the first flight across the channel. Industry 4.0 has
revolutionized business operations both inside and outside the factory, increasing the links between
international organizations and driving the process of globalization forward.

Across these changing prerequisites of success, today’s global manufacturing hubs in North
America, Europe, and East Asia lead, and low-income countries in Africa and elsewhere lag, most
notably in measures of internet access and digital readiness. Middle-income countries, particularly
many emerging Asian economies, have scope to develop comparative advantages in the
increasingly technology-led manufacturing, as shown by their relatively high scores on key
competitiveness factors along with their growing domestic supply chains and consumer markets.
While technology is boosting productivity in today’s manufacturing hubs and largely offsetting
rising wages, it is also reducing the cost of capital and slowing the need to offshore production
toward lower-wage countries. In fact, there are emerging trends of reshoring in global
manufacturing production back to some advanced economies.
Conclusion: -
In the dawn of Industry 4.0, companies are using more complex, worldwide supply chains and data
networks in their operations. Physical connectivity is being replaced with an increasing number of
digital links — many of which are stored in the cloud. Greater international collaboration is more
possible than ever before. Using cloud-based software, any staff member in any geographical
location can contribute to a design. This function is being increasingly offered in computer-aided
design (CAD) software, making design a more collaborative process.

However, globalization is not just improving the design process. Businesses can get the most out
of their talent pool or international supplier network using digital connectivity, as expertise can be
offered remotely and in real time. In many international companies, suppliers or personnel work
in small clusters to increase the flow of ideas, which can be spread more widely using the cloud.
Cheap data storage and transfer will increase the decentralization and flexibility for businesses.
This may result in the international company of the future not needing a significant physical
presence across the globe but operating from just a few clusters.