Given its roots deep in the cold war era, it is a remarkable accident of history that the Internet should have morphed into a vehicle for globalization. It is well within the bounds of possibility that the total carrying capacity of the world's telecommunications networks will increase 100,000-fold by the end of this decade. The Internet will figure centrally in the continuing globalization of the world's capital markets. In an increasingly interdependent world, businesses demand access to the world's capital, while investors and venture capitalists seek worldwide opportunities. A world in which stock exchanges are globally linked and open for business around the clock is not far off.
Globalization leads to increasing complexity and diversity.
Operating across different jurisdictions, cultures and time zones, companies must satisfy a dizzying welter of interests, including customers, investors, employees, alliance partners, bankers, suppliers and government regulators. The Internet enables greater inclusiveness and participation, better communications with global stakeholders, and more transparency in governance. Indeed, many companies now post their annual reports on the web. Some webcast their stockholder meetings as well as briefings to which only analysts were formerly invited. These practices make for more efficient information flows, greater transparency and, ultimately, lower costs of capital.