IFSM 300 Week 1-Information Systems in Organizations

Globalization and the Digital Divide

Globalization is the term used to refer to the integration of goods,

services, and culture among the nations of the world. Globalization is not

necessarily a new phenomenon; in many ways, we have been

experiencing globalization since the days of European colonization.

Further advances in telecommunication and transportation technologies

accelerated globalization. The advent of the worldwide internet has made

all nations next‐door neighbors. The internet has wired the world. Today

it is just as simple to communicate with someone on the other side of the

world as it is to talk to someone next door.

The new era of globalization allows any business to become international.

Some of the advantages include the following:

• The ability to locate expertise and labor around the world. Instead of

drawing employees from their local area, organizations can now hire

people from the global labor pool. This also allows organizations to

pay a lower labor cost for the same work based on the prevailing

wage in different countries.

• The ability to operate 24 hours a day. With employees in different

time zones all around the world, an organization can literally operate

around the clock, handing off work on projects from one part of the

world to another. Businesses can also keep their digital storefront

(their website) open all the time.

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• A larger market for their products. Once a product is being sold

online, it is available for purchase from a worldwide consumer base.

Even if a company's products do not appeal beyond its own country's

borders, being online has also made the product more visible to

consumers within that country.

In order to fully take advantage of these new capabilities, companies need

to understand that there are also challenges in dealing with employees

and customers from different cultures. Some of these challenges include:

• Infrastructure differences. Each country has its own infrastructure,

many of which are not of the same quality as the US.

• Labor laws and regulations. Different countries (even different states

in the United States) have different laws and regulations. A company

that wants to hire employees from other countries must understand

the different regulations and concerns.

• Legal restrictions. Many countries have restrictions on what can be

sold or how a product can be advertised. It is important for a

business to understand what is allowed.

• Language, customs, and preferences. Every country has its own (or

several) unique culture(s), which a business must consider when

trying to market a product there. Additionally, different countries

have different preferences. For example, in some parts of the world,

people prefer to eat their french fries with mayonnaise instead of

ketchup; in other parts of the world, specific hand gestures (such as

the thumbs‐up) are offensive.

• International shipping. Shipping products between countries in a

timely manner can be challenging. Inconsistent address formats,

dishonest customs agents, and prohibitive shipping costs are all

factors that must be considered when trying to deliver products

internationally.

Digital Divide

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As the internet continues to make inroads across the world, it is also

creating a separation between those who have access to this global

network and those who do not. This separation is called the digital divide

and is of great concern. The digital divide can occur between countries,

regions, or even neighborhoods. In many US cities, there are pockets with

little or no internet access, while just a few miles away high‐speed

broadband is common. Solutions to the digital divide have had mixed

success over the years. Many times, just providing internet access and/or

computing devices is not enough to bring true internet access to a

country, region, or neighborhood. Organizations must evaluate this

potential issue as they seek to operate in different geographical areas to

determine whether technology solutions are readily accessible and usable

to their target audience.

Licenses and Attributions

Chapter 11: Globalization and the Digital Divide

(https://www.saylor.org/site/textbooks

/Information%20Systems%20for%20Business%20and%20Beyond

/Textbook.html#_Chapter_11:_Globalization) from Information

Systems for Business and Beyond was adapted by The Saylor Foundation

and is available under a Creative Commons Attribution 3.0 Unported

(https://creativecommons.org/licenses/by‐nc‐sa/3.0/) license. © 2014,

David T. Bourgeois. UMGC has modified this work and it is available

under the original license.

© 2023 University of Maryland Global Campus

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