It Role in International Business

Topics: International trade, World Trade Organization, Electronic commerce Pages: 5 (1441 words) Published: April 6, 2011
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 business
Anyone involved in business must understand technology
Business functions receiving the huge benefits from the information technology Customer service: click-to-talk, call scripting, auto answering, call centers Finance: accounting packages, Sarbanes Oxley

Sales and marketing: campaign management, customer relationship management Operations: supply chain management
Human resources: software to track employees at risk of leaving

Information technology’s impacts on business operations
1)Reduce cost and improve productivity = supply chain management, enterprise resource planning 2)Improve customer satisfaction and loyalty = customer relationship management, loyalty programs 3)Create competitive advantage = business intelligence/data warehousing 4)Generate growth = sales management systems

5)Global expansion = e-business.
Impact on internal business operations
Accounting - provides quantitative information about the finances of the business including recording, measuring, and describing financial information. •Finance - deals with the strategic financial issues associated with increasing the value of the business, while observing applicable laws and social responsibilities. •Human resources - includes the policies, plans, and procedures for the effective management of employees (human resources). •Sales - the function of selling a good or service and focuses on increasing customer sales, which increases company revenues. •Marketing - the process associated with promoting the sale of goods or services. The marketing department supports the sales department by creating promotions that help sell the company’s products. •Operations management - includes the methods, tasks, and techniques organizations use to produce goods and services. Transportation (also called logistics) is part of operations management. Reason for expanding companies into international market

-Domestic Market Saturated
-Increase market size and extend product life cycle
-Enhance your return on invested capital
-Enhance location advantages for suppliers or customers
-Higher Sales, Economies of Scale, Risk Diversification, transfer of knowhow, global brands etc. -Growth Opportunities
-Globalization of Market
Trade Barriers in International Markets
Tariffs – taxes based on the value of imported goods and services. Usually by product categories, sometimes countries, Revenue generating, discourage imports of undesirable products, ‘level the playing field’. •Quotas – Restrictions on the number or monetary value of products that can be imported, usually product and country specific. •Voluntary Export Restraint – Country specific. Usually under pressure and severe threats. Designed to help domestic industries reorganize and restructure. Not subject to any previous trade accords. •Monetary Barriers – exchange control, nonconvertible currency, differential exchange rates. Usually balance of payment problems (developing countries). •Standards – Product specific. Health, Safety, Quality, Performance. Designed to protect consumers but are often disguised barriers. •Local Content Requirements – Designed to aid domestic economy by either increasing sales of local...
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