Name: Guzman, Ma. Christine C.

Course/Year: BSAIS-3
Contact number: 09752637835

Exercise 5. INTERNATIONAL BUSINESS AND INFORMATION TECHNOLOGY

Part I. Essay. Write your answer in the space provided. Your answer must be based on your
interpretation of what you read in this module. (10 pts. Each)
1. What has motivated the current interest in global business?
As the economy grows slowly at home, your business may have to look at selling internationally
to remain profitable. Developing countries will see the highest economic growth as they come closer to
the standards of living of the developed world. If you want your business to grow rapidly, consider
selling into one of these emerging markets. Language, financial stability, economic system and local
cultural factors can influence which markets you should favor. The pace of innovation is increasing as
many new companies develop new products and improved versions of traditional items. More intense
and more rapid communications allow customers everywhere to purchase products made anywhere
around the globe and to access information about what to buy. As pricing and quality information
become available across all markets, businesses will lose pricing power, especially the power to set
different prices in different markets. Environmental factors are already a major influence in the West
and will become more so worldwide. Businesses must take into account the environmental impact of
their normal operations. They can try to market environmentally friendly technologies internationally.
The advantage of this market is that it is expected to grow more rapidly than the overall economy.
2. What Internet access policies would you recommend to the government of a developing country?
In many countries, even among some of the world’s largest economies there is a gap in Internet
adoption between rural and urban areas. A lack of infrastructure is responsible in many cases for this
divide. Affordable internet access would help developing nations is by allowing people in remote areas
to use telemedicine to get basic medical care. Telemedicine is using technologies such as the internet to
allow people who live in remote areas, without enough doctors, to gain access to healthcare.
3. What are the advantages of making product design information available around the world? How
might you use this capability to organize product development?
Developing a product for sale is an art as well as a science. The art of product design is the act of
creating a new product that a company intends to sell to its customer, is a process with many steps,
producing several iterations of a concept or idea that are then refined into a final design. The overall
goal of this process is to create a product that combines form and function and turns the concept into a
tangible item that can then be sold to the customer. It may seem like the product design process is too
complicated and complex, and business owners may be tempted to streamline it to get a product on the
 market quickly. However, good product design can mean the difference between market success and
product failure.

A good product design must be both innovative and useful, and the benefits of good product
design cannot be overstated. It’s important to make sure the product does something new and different
and that what it does is useful for the average consumer. The product development process can be
streamlined in much the same way. The process view helps managers identify and solve congestion
problems caused by mismatches between the workload of each subunit in the development organization
and its capacity to handle that workload.
4. How can IT help coordinate a global firm? Where can it help save money while making the firm
more responsive?
Business globalization is the emergence of the worldwide market as the arena of corporate
activities. Virtually all large firms, and many smaller ones, acquire labor where it is cost-effective, find
intellectual and financial capital anywhere it is available, and pursue markets across the globe. The cost
of developing and marketing many products have to be recouped by going far beyond the local market
to sell them. Information systems have a vital role to play in a multinational corporation. To perform and
innovate successfully in a global marketplace, organizations need to develop superior coordination
skills. Organizational designs and the use of information systems should facilitate the processes of
coordinating and innovating. Information systems aid companies in competing with other competitors
by maintaining low costs, differentiating products or services, focusing on market niche, and
strengthening ties with customers and suppliers, and increasing market entry high competition.

5. How can an international firm see that local staff members have enough expertise to develop and
apply IT?
Improved staff productivity, because employees are able to benefit from colleagues' knowledge
and expertise to find out the best way to get things done. They'll also feel more appreciated in a business
where their ideas are listened to. An information technology expert works to monitor and manage
computer hardware, software and networks within an organization. This expert is known by a wide
range of titles, including network administrator, information security analyst, and business information
technology analyst and information technology project manager. The job attracts potentially lucrative
salaries and offers an array of opportunities for personal growth. Here are steps you need to take if you
want to become an information technology expert.