Imapact of I.T on International Commerce: Management of transnational corporations and Business Concentrations

Definitions  Commerce: The buying and selling of goods and services on a large scale  Transnational Corporation: Manages commerce between two or more companies  Business concentration: Amount of business taking place in an area

Transnational Corporations What is needed to efficiently manage a business in different countries:  Reliable communication  Storage of business data  Safe transportation of goods  Secure money transactions

Reliable and fast Communication  Internet offers services such as , data exchange, video and voIP. This allows employees and administrators to stay in touch.  Mobile phones makes an employee just a call away  Intranet allows a private network for persons within a business to access, store and share files. Think of it as a customized internet.

Efficient storage of data There are websites such as and that allow a business to store there data online. I.T has taken us even further by enabling employees store and access data on company intranets. It serves to be an office that can be accessed from anywhere. Security of data has been further enhanced by the ability to encrypt data

Safe transportation of goods I.T systems today ensure that goods are delivered on schedule. We have a choice to chose which technology ; air, water, railway or road transportation. Whether you want an express train or a air freight delivering your goods, you have the ability to keep track of where they are. Go to and track your package

Secure money transactions You’ve heard of online banking. You sit at your desk and pay for what you’ve bought, transfer huge amounts of money and then go share a cup of coffee in the business lounge. Or you could try the ATM round the corner

Business concentration I.T has played an important role in how much business is taking place in an area. We all want our services then and there and I.T is able to do that. Businesses will concentrate in areas that offer quick and reliable services such as good communication, fast transportation, reliable internet for online banking and many others.

Advantages  Job opportunities for example specialists to take care of I.T systems in a company  Globalization is realized because of the intricate but reliable communication present  Companies are able to offer services and goods to more locations hence high profit margins  Growth of economies

Disadvantage Due to unequal to access to business opportunities, less privileged companies die out. For example people will flock to Barclays bank and forget about Bank of Uganda Economies in some areas like Gulu in Uganda are left to wither and are concentrated in other areas. Encourages corruption. There are many different ways in which to transfer bribe money and carry out private conversations between companies Unwanted political lobbying. This is brought about by companies meaning to expand in a country. They have to pass through governments who may not want this attention. For example the battle between Google and China.

Social and Ethical Issues Reliability Communication will not always be reliable; poor network, high internet traffic and even natural catastrophes can hinder this. Servers can breakdown and information stored on them lost Viruses can attack systems and cause them to be unreliable

Integrity Information can easily be accessed and changed by an outsider

Security The safety of online banking is threatened by malicious persons who go to extents to get their hands on large amounts of money Private networks can be hacked

Equality of Access Unequal access to I.T systems due to expensive rates Unequal access to services and goods due to business concentrations in some areas

Globalization and cultural diversity Companies are able to give goods and services to people internationally for example Standard Chattered and Barclays

Policies and standards I.T systems have policies and standards which must be adhered to. Such as the minimum requirements of a computer to have a particular software

People and machines As people growing towards a faster economy, there will be overdependence on I.T systems. We will have to write our letters by pen and paper and place them in a post office box where they will have to be manually sorted. Possible?!

alCommerce Bibliography