Final answer:
Information technology has leveled the playing field by enabling small firms to compete globally, yet it also fosters winner-take-all markets favoring large firms. Technological access remains unequal, pointing to persistent challenges in achieving true global equality.
Step-by-step explanation:
Improvements in information technology have had a profound impact on the business landscape, essentially leveling the playing field in terms of providing opportunities for firms of all sizes. On one hand, advancements in technology have democratized access to global markets, enabling small firms to extend their reach far beyond local borders, fostering a competitive business environment with a multitude of small competitors. This suggests a future where geographic limitations are less relevant, and where every entrepreneur can be a global contender.
On the other hand, there is a concern that improved technology might favor large-scale operations, creating winner-take-all markets dominated by a few giants like Microsoft or Amazon, as they leverage technology to efficiently manage operations globally. This dichotomy demonstrates an ongoing battle between smallness and largeness, interesting to a variety of stakeholders including economists, businesspeople, and policymakers.
Despite the optimism, one must acknowledge that technology has not completely flattened the world. Technological stratification can exacerbate inequalities as not everyone has equal access to these advancements. There are efforts to ensure better access for all, however, true technological global equality remains elusive.