Describe some opportunities and challenges in international marketing created by new advances in information technology.© BrainMass Inc. brainmass.com June 3, 2020, 4:51 am ad1c9bdddf
1. Describe some opportunities and challenges in international marketing created by new advances in information technology.
With new advances in information technology, opportunities and challenges exist everywhere.
Globalization: Developments in information and communications technologies are fundamentally changing the nature of globalization in the 21st century. Gone are the days when international trade was largely between firms in raw materials or finished goods. Today, more than 50%—and a rising proportion—of international trade consists of intermediate goods and services being traded intra-firm between dispersed subsidiaries of the corporation. Consider, for example, the case of Texas Instruments, one of whose recent chips was conceived jointly with engineers from Sweden's Ericsson, designed in Nice, France, using TI software from Houston, produced in Japan and Dallas, tested in Sweden, and commercially exploited in markets all over the world. As an even more interesting example, consider the present-day case of Boston's Massachusetts General Hospital. On an ongoing basis, every night, almost the entire radiology function of MGH moves to India. It's easier and cheaper to get better radiologists in India during that country's daytime than during nighttime in Boston. Such complex globalization would be simply infeasible without the power of digital technologies.
Financial Markets: Well-developed financial systems require efficient mechanisms to transfer capital across time and between people, to pool capital, and to manage risk. These mechanisms promote efficiency and economic growth by ensuring that the best ideas and projects can be financed in the most effective ways and that transaction costs can be minimized. A key driver of the efficiency of financial systems is the quality and timeliness of the flow of information among providers of capital, financial intermediaries, and employers of capital. This allows parties to observe and manage risks better in financial transactions, leading to more efficient allocation of capital.
Lowered Barriers to Entry and Execution Costs: Digitization has had a dramatic impact on the gathering, transmission, and processing of information. This has led to significant advances in the operation of financial markets, the nature of financial ...
Describes some opportunities and challenges in international marketing created by new advances in information technology. References are provided.