Question

5. Discuss the effects of various forms of technology on international business. What role does the Internet play? Where is this all leading? Explain the meaning of “appropriability of technology.” What role does this play in international competitiveness? How can managers protect the proprietary technology of their firms?

Answer 1

Answer:

The internet has radically affected international business.

Explanation:

First, the internet has made it easier for firms to engage in international business and trade because it reduces barriers to entry, facilitates communications, and becomes a vehicle for the creation of new economic sectors.

Second, the internet has made competition between companies more stiff in some sectors, but has resulted in the formation of oligopolies, duopolies, and even monopolies in other sectors, especially those that are very intensive in all kinds of capital, from human capital to technological capital, to financial capital.

Third, the internet has made the concept of appropriability more important because intellectual property has gained more importance, and also because the internet has made it easier to engange in intellectual property theft.

Finally, managers can protect the proprietary technology of their firms by using the most advanced tools of virtual security and protection, this is why many computer scientists are hired in this sector.