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Effect of Technological Change During the COVID-19 Pandemic

I agree that technological change has deepened globalization and weakened the relevance of the nation-state, especially during the covid-19 pandemic. The changes and advancements in technology have been the main reason for deepening globalization. This is because advancement in technology has led to growth in businesses in the global economy by increasing the economies of scale and the market size businesses need to break even. (Delios et al., 2021) Another reason is that the advancement in technology has dramatically reduced the cost of transportation across the globe. In that case, it has greatly facilitated the sourcing of materials and other inputs globally. Advancement in technology has led to the world becoming a global village. For instance, the worldwide web has reduced the barriers of time and location in interactions. Hence, people can interact with one another at any time and at any site globally, which has, in turn, affected investments.

Analyzing the first point, technological change during the Covid-19 pandemic has led to the growth of businesses globally hence deepening globalization. This is because companies have realized that the global market could help their businesses grow and break even faster than their locality. This has had a significant impact on the nation as it has led to the enterprises concentrating on investing in other countries and, in turn, weakening the relevance of the nation-state (McNamara & Newman, 2020). Another vital point to note is that advancing technology has led to giant corporations realizing the advantage of transfer pricing to other countries, which charge a tiny percentage of corporate tax. In turn, these countries attract massive capital for investment. Hence globalization has led to the nation-state losing its power to control its people and separate between different nationalities.

The second argument on how technology during the Covid-19 pandemic has reduced the cost of transportation across the globe, promoting globalization. This has created an easy way for businesses to obtain raw materials and other inputs on the global market at a relatively cheaper rate. Hence, companies have opted to source from outside the country. In the past, when transportation, especially in developing countries where the cost of transport was very high, there were clear national borders, a strong tradition, and a sense of nationality among the people who lived in a particular country, and there were very few ways of meeting other people (Delios et al., 2021). This has also led people, especially from developing countries, to migrate to developed nations, causing racial and cultural tensions in many parts of America and Europe. This factor has led to more communications and interactions, which has led to a greater interdependence of the businesses and weakened the nation-state.

The third argument is that advancing technology during the Covid-19 pandemic has led to the world becoming a global village and deepening globalization. This is because technology has removed the barrier of time and location so that people can interact at any given time around the globe (McNamara & Newman, 2020). This has led to the interdependence of the global community; hence globalization has posed a significant threat to the nation-state from taking part in international organizations, losing part of the nation-state sovereignty to advancing technology and direct interaction and mobility of people around the globe.

On the other hand, the fourth argument is that advancement in technology during the Covid-19 pandemic has mixed a relationship between globalization and the nation-state, which has brought about one leading to another and one promoting the other. This is because technological advancement has facilitated the online world to use their nationalism and cultures as marketing tools for their own countries and encouraged and boosted domestic tourism, especially during the Covid-19 pandemic and promoting the nation-state (Xia). However, it has also led to other people interested in exploring different nationalities and cultures and promoting globalization. Hence some people view globalization as a result of nationalism because each country has taken part in giving something to the globe in a successful collective action. Thus it can be concluded that without nationalism existing, globalization would not be happening.

In conclusion, this study has proven that technological advancement has deepened globalization, especially during the Covid-19 pandemic. Globalization has led to positive outcomes in the different nation-states, fostered business and investments in different countries, and created conflict resolution and prevention methods due to integration. But also, on the other hand, the major setbacks that the nation-state faces as a result of globalization. The deepening of globalization results in changes to the world, minorities, and localities. This has led to countries realizing the threat that globalization poses. This existing threat is globalization fusing the different nationalities and making the people and countries one; another threat is participation in the international organizations resulting in the loss of parts of the nation’s state sovereignty over its boundaries and the regional integration that fades the nation-state ideology.


Delios, A., Perchthold, G., & Capri, A. (2021). Cohesion, COVID-19, and contemporary challenges to globalization. Journal of World Business, 56(3), 101197.

McNamara, K. R., & Newman, A. L. (2020). The Big Reveal: COVID-19 and Globalization’s Great Transformations. International Organization, 74(S1), E59-E77.

Xia, L. The Influence of COVID-19 Epidemic on China’s Public Diplomatic Relations under Global Governance.


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