This text develops the insights of the often separate literatures
on globalization and information technology and demonstrates their
interdependence. The central insight is that globalization is
mainly a technological phenomenon, driven by influences exerted on
international trade and foreign investment by various forms of
information technology. Developing countries, however, are not
sharing equally in the gains from globalization thus induced by the
new technologies. These gains tend to be concentrated among a
narrow group of relatively advanced countries and, moreover within
some of those countries information technology appears to
exacerbate existing income inequalities.
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