Imapact of I.T on International Commerce: Management of transnational corporations and Business Concentrations

Definitions Commerce: The buying and selling of goods and services on a large scale

Transnational Corporation: Manages commerce between two or more companies

Business concentration: Amount of business taking place in an area

Transnational CorporationsWhat is needed to

efficiently manage a business in different countries:

Reliable communication

Storage of business data

Safe transportation of goods

Secure money transactions

Reliable and fast Communication Internet offers services

such as email, data exchange, video and voIP . This allows employees and administrators to stay in touch.

Mobile phones makes an employee just a call away

Intranet allows a private network for persons within a business to access, store and share files. Think of it as a customized internet.

Efficient storage of dataThere are websites such

as www.mozy.com and www.humyo.com that allow a business to store there data online. I.T has taken us even further by enabling employees store and access data on company intranets. It serves to be an office that can be accessed from anywhere.

Security of data has been further enhanced by the ability to encrypt data

Safe transportation of goods I.T systems today ensure

that goods are delivered on schedule. We have a choice to chose which technology ; air, water, railway or road transportation. Whether you want an express train or a air freight delivering your goods, you have the ability to keep track of where they are. Go to www.dhl.com and track your package

Secure money transactions

You’ve heard of online banking. You sit at your desk and pay for what you’ve bought, transfer huge amounts of money and then go share a cup of coffee in the business lounge.

Or you could try the ATM round the corner

Business concentrationI.T has played an

important role in how much business is taking place in an area. We all want our services then and there and I.T is able to do that. Businesses will concentrate in areas that offer quick and reliable services such as good communication, fast transportation, reliable internet for online banking and many others.

Advantages Job opportunities for

example specialists to take care of I.T systems in a company

Globalization is realized because of the intricate but reliable communication present

Companies are able to offer services and goods to more locations hence high profit margins

Growth of economies

DisadvantageDue to unequal to access to

business opportunities, less privileged companies die out. For example people will flock to Barclays bank and forget about Bank of Uganda

Economies in some areas like Gulu in Uganda are left to wither and are concentrated in other areas.

Encourages corruption. There are many different ways in which to transfer bribe money and carry out private conversations between companies

Unwanted political lobbying. This is brought about by companies meaning to expand in a country. They have to pass through governments who may not want this attention. For example the battle between Google and China.

Social and Ethical IssuesReliabilityCommunication will not

always be reliable; poor network, high internet traffic and even natural catastrophes can hinder this.

Servers can breakdown and information stored on them lost

Viruses can attack systems and cause them to be unreliable

IntegrityInformation can easily

be accessed and changed by an outsider

SecurityThe safety of online

banking is threatened by malicious persons who go to extents to get their hands on large amounts of money

Private networks can be hacked

Equality of Access

Unequal access to I.T systems due to expensive rates

Unequal access to services and goods due to business concentrations in some areas

Globalization and cultural diversity

Companies are able to give goods and services to people internationally for example Standard Chattered and Barclays

Policies and standards

I.T systems have policies and standards which must be adhered to. Such as the minimum requirements of a computer to have a particular software

People and machinesAs people growing

towards a faster economy, there will be overdependence on I.T systems. We will have to write our letters by pen and paper and place them in a post office box where they will have to be manually sorted. Possible?!

http://www.ruthtrumpold.id.au/itgswiki/pmwiki.php?n=Main.InternationalCommerce

http://en.wikipedia.org/wiki/Commerce

Bibliography