SOCIAL NETWORKS SIGNIFICANCE IN GLOBALIZATION PROCESS OF ECONOMIC DEVELOPMENT

Globalization has been happening for a while. There is much coverage in talks and books about this subject. In his book The Lexus and the Olive Tree: Understanding Globalization, Thomas Friedman talks about the problems experienced by small nations caught in this process of globalization. Small nations that do not embrace the information age and present themselves to the world with a unique identity, risk succumbing to the pressures of globalization rather than thriving from it.(i) Embracing globalization through social networks can help companies and entrepreneurs in small nations survive and empower themselves. It is important that the entrepreneur create social connections on a world level in order to lower barriers for entry into new markets. This allows companies within small nations to sell beyond their borders by leveraging social networks. The aim of this paper is to point out the significance of social networks in the context of globalization and entrepreneurship in economic development.