Saturday, April 24, 2010

Volcano erupts

A ash cloud from a volcano wrecked global travel. Cisco Systems senior vice president used technology to set up a virutal press conference. Since the volcano erupted on April 14, Cisco's Telepresence service has boomed. They now know how to use a cheap and and easy techonoloty. They are now using it as a network for business meetings. This is of course used when face-to-face meetings are impossible.

Google has also helped companies set up Gmail. This is an easy way to keep a company running meetings and trading information. If a man-made or natural crisis were to occur and shut down these companies, workders can show up and start trading information through technology. This type of thinking is just how if one are of the globe is affected by a disaster, traffic can be routed to another. However the global economy learned last week that it is a lot harder and in some cases, nearly impossible to lose jobs while building networks that now move people, goods, and services around the world.

During the cloud of volcanic ash clouds in the air, the International Air Travel Association reported that airlines lost $1.7 billion because of the shutdowns in Europe. This is among the smallest of problems that have happened over the years though. Hundreds of years ago an eruption far away in Iceland wouldn't have affected autoworkders in Tennessee from assembling cars. That is changed however for this day and age. Manufacturers now have lengthy supply chains and therefore keep as little warehouse space as they can tied up with inventory.

Globalization has brought companies sources and products to places all over the world. The bad thing about this is that if there is any sort of disruption anywhere then the machinery of global capitalism slows down. Europe is the biggest exporter and the second biggest importer, so if there is any disruption there you know companies elsewhere will be hurting.

Companies are looking and trying to come up with alternitive ways for this problem. It seems that the globalization of transport and inventory from all over the globe is becoming fragile. They have come up with new and faster routes for travel over seas but are still working on effective ways for other such improvements.

I knew that we shared and imported things from other countries as well as exported but I didn't know how great of a tragedy a disaster millions of mile away could have on certain companies. We are all connected in this globalization system and if we can find a smoother way of keeping things running while other places are dissabled of travel and etc. it would be a great break through.

1 comment:

  1. After hearing about this volcano over in Iceland, I immediately thought about the people living over there and how they were going to be affected. Than with all the information out there about air travel and how that is affected, really caught my attention. I have never flown on a plane and after reading about this, finally realize how much we depend on air travel. Besides the devastation near the volcano, the world is being greatly affected. If the media had not mentioned business like the care manufacturers or other importing/exporting goods, I don’t think I would have actually realized the impact. It is amazing how such an event can have such a huge impact on the rest of the world!

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