It Role in International Business

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Information Technology
• Information technology (IT) is a field concerned with the use of technology in managing and processing information
• Information technology can allow departments to more efficiently and successfully perform their business operations. Information technology is an important enabler of business success and innovation.
International business
International business is a term used to collectively describe all commercial transactions that take place between two or more nations. A multinational enterprise (MNE) is a company that has a worldwide approach to markets and production or one with operations in more than a country.
Information technology’s role in international Business
• Information technology is everywhere in
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Designed to keep decision making and ownership in local hands.
• Bureaucratic Hurdles – Licenses, Testing, Certification, Buy domestic campaigns, Boycotts etc.
Internet
• Emerging as a major international business tool for - Sales (both business-to-business and consumer), research, advertising, and communications.
• Problems with govt. regulations, tariffs, and taxation.
World Trade Organization (WTO)
• Created at the conclusion of the last G.A.T.T. agreement.
• 153 countries (as of July 2008)
Functions of WTO
Administering WTO trade agreements (e.g., GATT, GATS, TRIPS) Trade negotiations - Handling trade disputes - Monitoring national trade policies - Technical assistance and training for developing countries - Co-operation with other international organizations
Foreign trade zone
If goods processed and sold in the country than tariffs only on parts imported. Foreign Trade Zones were created in the United States to provide special customs procedures to U.S. plants engaged in international trade-related activities. Duty-free treatment is accorded items that are processed in FTZs and then reexported, and duty payment is deferred on items until they are brought out of the FTZ for sale in the U.S. market.
Advantages of Foreign trade zone
• Use of cheap labor or skilled workforce, and local content without paying duties.
• Lower tariffs for parts and lower transportation and insurance
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