MBA (General) - IV Semester, Information Technology and E-Business, Unit 5.2
Cultural, Political and Geo-Economical Challenges
The following figure highlights the different global IS/IT activities that take place amidst cultural, political and geo-economic challenges.
Cultural, Political and Geo-Economical Challenges
The following figure highlights the different
global IS/IT activities that take place amidst cultural, political and
geo-economic challenges.
Many countries have rules regulating or
prohibiting transfer of data across their national boundaries (Trans border
data flows), especially information such as personnel records.
Restrict, tax, or prohibit imports of hardware
and software.
Local content laws that specify the portion of
the value of a product that must be added in that country if it is to be sold
there
Reciprocal trade agreements that require a
business to spend part of the revenue they earn in the country in that nation’s
economy.
In global business and IT, one might want to
consider the effects of geography on the economic realities of international
business activities. These challenges include
➢ Physical distances involved are still a
major problem
➢ World’s 24 time zones contribute to
communications problems
➢ Lack of telecommunications capabilities in
some countries
➢ Lack of specialized job skills in some
countries, or enticing specialists from other countries to live and work there
➢ Cost of living and labor costs in various
countries.
