Information Technology Reference
In-Depth Information
Despite the difficulties, corporations are increasingly making use of multinational
teams. About 90,000 IT-related jobs in the United States are moving to foreign countries
every year, and at American companies whose revenues are at least $5 billion, about a
quarter of IT jobs have already moved offshore [44].
Globalization
refers to the process of creating a worldwide network of businesses and
markets. Globalization results in a greater mobility of goods, services, and capital around
the world. Investments are made across national boundaries. Products manufactured in
one country are sold in another. Consumers calling a telephone help center get con-
nected with support technicians located on the other side of the world.
The rapidly decreasing cost of information technology has made globalization pos-
sible (Figure 10.8). The cost of computing dropped by 99.99 percent between 1975 and
1995. The cost of an international telephone call from New York to London dropped by
99 percent between 1930 and 1996 [45]. Companies have made extensive use of low-cost
information technology to coordinate operations distributed around the planet.
Those who favor globalization seek the removal of trade barriers between nations. The
North American Free Trade Agreement (NAFTA) between Canada, the United States,
and Mexico was a step toward globalization.
$1000.00
$100.00
$10.00
$1.00
$0.10
$0.01
1930
1950
1970
1990
FIGURE 10.8
The dramatic declines in the cost of computing and communications have
made global enterprises feasible.
