An Introduction to Information Systems - Principles of Information Systems - page 33

• Infrastructure challenges. High-quality electricity and water might not be available in
certain parts of the world. Telephone services, Internet connections, and skilled
employees might be expensive or not readily available.
• Currency challenges. The value of different currencies can vary significantly over time,
making international trade more difficult and complex.
• Product and service challenges. Traditional products that are physical or tangible, such
as an automobile or bicycle, can be difficult to deliver to the global market. However,
electronic products (e-products) and electronic services (e-services) can be delivered to
customers electronically, over the phone, through networks, through the Internet, or by
other electronic means. Software, music, books, manuals, and advice can all be delivered
globally and over the Internet.

•

Technology transfer issues. Most governments don't allow certain military-related
equipment and systems to be sold to some countries. Even so, some believe that foreign
companies are stealing intellectual property, trade secrets, and copyrighted materials, and
counterfeiting products and services.

•

State, regional, and national laws. Each state, region, and country has a set of laws that
must be obeyed by citizens and organizations operating in the country. These laws can
deal with a variety of issues, including trade secrets, patents, copyrights, protection of
personal or financial data, privacy, and much more. Laws restricting how data enters or
exits a country are often called transborder data-flow laws. Keeping track of these laws and
incorporating them into the procedures and computer systems of multinational and
transnational organizations can be very difficult and time consuming, requiring expert
legal advice.

•

Trade agreements. Countries often enter into trade agreements with each other. The
North American Free Trade Agreement (NAFTA) and the Central American Free
Trade Agreement (CAFTA) are examples. The European Union (EU) is another example
of a group of countries with an international trade agreement. 67 The EU is a collection
of mostly European countries that have joined together for peace and prosperity.
Additional trade agreements include the Australia-United States Free Trade Agreement
(AUSFTA), signed into law in 2005, and the Korean-United States Free Trade
Agreement (KORUS-FTA), signed into law in 2007 . 68 Free trade agreements have been
established between Bolivia and Mexico, Canada and Costa Rica, Canada and Israel,
Chile and Korea, Mexico and Japan, the United States and Jordan, and many others. 69