Globalization of IT Industry What are the locational

Globalization of IT Industry What are the locational factors of the IT industry? Quit

Globalization of IT Industry What is the information technology (IT) industry? It is a type of _______-______ high technology industry. Information technology (IT) industry Manufacturing of hardware and equipment (Any examples? ) Development of software and related services (Any examples? ) Quit

Globalization of IT Industry What are the characteristics of the IT industry? 1 Research and development-intensive Inputs Raw materials Processes Outputs Design Manufacturing Power supply Assembly Packaging Skilled and unskilled labour IT equipment products Technology and R&D Capital Which two inputs do you think are the most important ones for the IT industry? Cash Global markets Quit

Globalization of IT Industry What are the characteristics of the IT industry? 1 Research and development-intensive Therefore, the IT industry is widely known as a… technology ______-intensive industry capital _____-intensive industry research and development _____________ -intensive industry Quit

Globalization of IT Industry What are the characteristics of the IT industry? 2 Short life cycle of IT products Stage of production Development Growth Maturity Market grows rapidly Market levels off Decline Market drops rapidly How often do you change your IT products such as mobile phones, PCs, etc. ? Much work on R&D Only in a few years Quit

Globalization of IT Industry What are the characteristics of the IT industry? 3 Multinational and multi-point production (Using an IT firm in the USA as an example) Stage of production Development Growth Production requirement Scientists and engineers for ______ R&D Skilled workers Location of production - Headquarters: in US big city - R&D centres: location with professionals and _______ skilled _______ labour in home country ( ______ more developed countries) Maturity Decline ______ Unskilled workers for standardized mass production Mass production bases: location with ____ cheap labour overseas (in ______ less developed countries) ______ Multinational and ______ multi-point production Quit

Globalization of IT Industry What are the characteristics of the IT industry? 4 Concentration in clusters In development / R&D stage For example, What attract are more the technology advantages professionals for information can IT firms to go toto form flow among clusters? the area. firms; and… Silicon Valley in California is one of the most famous IT industrial clusters in the USA Quit

Globalization of IT Industry What are the characteristics of the IT industry? 4 Concentration in clusters What are the advantages for IT manufacturing plants to form clusters? In maturity / production stage For example, This cluster reduceuse the of efficient pattern is called investment on raw materials ______ industrial infrastructure; and fuels. _______. agglomeration and… Quit

Globalization of IT Industry What are the characteristics of the IT industry? 5 Importance of global markets A lot of mo ney for R& D A lot of money for R&D of A lot mo R&D r o f ney &D for R y e n o fm A lot of money for R&D A lot of money f or R&D In order to cover the huge amounts of money spent on R&D… Quit

Globalization of IT Industry What are the characteristics of the IT industry? 5 Importance of global markets ____ Global markets are needed to maximize the profits. Markets of the mobile phone Quit

Globalization of IT Industry What are the characteristics of the IT Near to ______ City centre universities industry? or research institutes 6 An IT industrial landscape This new kind of industrial landscape is called a green ________ field site ____. y ersit Univ A large pool of scientific and technically skilled labour Located in suburban _____ area Venture capital is available Low, modern, dispersed office-plantlaboratory buildings Quit

Globalization of IT Industry What are the locational factors of the IT industry? In development stage Technology ______ High level Site ‧In ( MDCs / LDCs ) ‧( City centre / suburb ) ‧Near universities or research institutes Labour Researchers, scientists and technicians Large amount of _____ venture capital Capital Government policy ‧Provide financial support for _____ R&D ‧Encourage innovative culture Market _____ Global markets Others Any examples? Quit

Globalization of IT Industry What are the locational factors of the IT industry? In In development maturity stage Technology No need______ to be oflevel high level High Site ‧In ( MDCs / LDCs ) ‧( City centre ‧_______ land/ site Cheap suburb ) ‧Good infrastructure ‧Near universities or research institutes Labour Abundant Researchers, scientists _______ and cheap semitechnicians skilled labour Large amount of capital of to venture set up _____ factories overseas capital Capital Government policy ‧Provide afinancial good infrastructure support for _____ R&D ‧Encourage ‧Provide good innovative culture communal services Market _____ Global markets Others Any examples? Quit

Globalization of IT Industry What is the world distribution of the IT industry? Europe USA The IT industry here mainly capital. professionals venture There Where are Why more _______ and isis They most the are IT IT industry industrial ( MDCson /set LDCs centres up____ there? ). found? concentrates _____. R&D Quit

Globalization of IT Industry What is the world distribution of the IT industry? China Malaysia India Mexico Brazil The IT industry here mainly concentrates on There are cheap ______ price and ____ costs. Are there Why is any the ITITland industrial industry set centres up there? in LDCs? labour the manufacturing of the ______. hardware Quit

Globalization of IT Industry Where is the IT industry in the USA? Silicon Valley large Can Theyyou Where arename mainly are a famous these found. IT in. IT clusters Why? the industrial suburbs mainly cluster of found _______ in the in? cities. USA? Quit

Globalization of IT Industry Where is the IT industry in the USA? Why is the IT industry there? Favourable locational conditions The suburbs of the large cities in the USA have… a ______ high standard of living _____well developed infrastructure a ttr a _____ pleasant living and working environment act s tra t a s ct skilled labour and professionals ts c ra att _____ venture capital from the big cities Quit

Globalization of IT Industry Where is the IT industry in the USA? Why is the IT industry there? Helpful government policies The policies carried out by the state governments also help attract the IT firms to come to their states. These policies include: Fav Good oura e r u t c ble ru e t s c a r o f n i nom d ic an p lans l a n u comm s e Favourable servic Innovative business culture climate Quit

Globalization of IT Industry Case study: How did the hard disk drive (HDD) manufacturing industry develop in the USA? Stage 1: 1956 -80 It was the beginning of the industry, it needed: HDDs were bulky, assembly plants needed to be located ＿＿＿＿＿＿＿ professionals / scientists for R&D; near _____ markets to save transport costs. thewere USA the USA Europe In＿＿＿＿＿＿＿ In ＿＿＿＿＿＿＿. and ＿＿＿＿＿＿. Wherewith was Where technological the Why? assembly development plants? carried out? places technology; and advanced Distribution pattern of the HDD industry of the USA (1956 -80) Quit

Globalization of IT Industry Case study: How did the hard disk drive (HDD) manufacturing industry develop in the USA? Stage 2: 1: 1980 1956 -80 to present Professionals / In Scientists the Asia USA areplants? ＿＿＿＿＿＿＿＿ In ＿＿＿＿＿＿＿. needed forout? R&D. Where is. Where technological are the Why? assembly development carried Distribution pattern of of the HDD industry of of the USA (1956 -80) (1980 onwards) Quit

Globalization of IT Industry Stage 2: 1980 to present Advancements in technology Smaller size of HDDs + Better transport Market situation Pressure from consumers results in lower transport costs ______ Lower the locational importance of market _____ Better communications production plants can be set up away from the HQs 0 0 0 , 0 285 $$1 Keen competition Attractions of LDCs ____ Cheap labour + ____ Cheap land + Favourable government policies ______ Increase the locational pull of LDCs Quit

Globalization of IT Industry What is the relationship between globalization and the IT industry? What is globalization? The It has development many meanings. of the IT industry Butiswe very canmuch look in at line it in with the two development major aspects. of globalization. There is a growing number of multinational firms. Countries all over the world have become more inter-related. Quit

Globalization of IT Industry What is the relationship between globalization and the IT industry? Globalization in marketing IT products target at _____ global markets. Sell here 1 Export products directly Foreign market Home country Produce here 2 License Grant a license overseas Produce and Home country sell here Foreign market 3 Foreign direct investment (FDI) Set up a plant overseas Produce and Foreign market Home country sell here Quit

Globalization of IT Industry What is the relationship between globalization and the IT industry? Globalization in production HQs and R&D in… Home country Production bases in… Overseas (usually in ____ less developed countries) _______ Multinational production Quit