Managing It, Data and Business System

MANAGING IT, DATA AND BUSINESS SYSTEM

A Project on Research Paper Review

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Submitted to:  Prof. Lakshmi Prasad                 Submitted by: HarshVardhan Jain
                                                                                                      1627261
                                                                                                      MBA-C

RESEARCH PAPER REVIEW

Author(s):  Seema Farhat and Mir Annice Mahmood

Title of the Paper: Globalization, Information Technology and Economic              Development

Journal Name: The Pakistan Development Review, Vol. 35, No.4, Papers and    Proceedings Part II Twelfth Annual General Meeting of the Pakistan Society of Development Economists, Islamabad.

Year of Publication: December 14-16, 1996 (Winter 1996)

Web Link: http://www.jstor.org/stable/41260013

INTRODUCTION

The paper discusses the linkage between information technology and economic globalization, and examines the reality of developing countries in relation to the perceived benefits of information technology and globalization to developing countries. Moreover, the issues involved in furthering the information technology paper in effort in Pakistan are also discussed. The paper argues that substantial headway can also be made with the existing resources given a more considered approach to the problem. The paper also discusses the set of policies, short-term and long term, needed to help draw the country into the integrated international production system reflective of the current trends of economic globalization. It considers how IT promotes economic globalization, how well it can be used to benefit developing countries and examines the issues which would hinder in developing countries, especially Pakistan. The paper begins by illustrating how developing countries can benefit from IT and how IT can be introduced in these countries. Also, about the present reality of these developing nations, in the midst of information technology and globalization of economic activity is also examined.

RESEARCH METHODOLOGY

It is in APPLIED RESEARCH which is designed to solve the problem of the modern world, rather than to acquire knowledge for knowledge’s sake. The goal of applied research is to improve the human condition. It focuses on analysis and solving social and real life problems. It is an investigation for ways of using scientific knowledge to solve practical problems.

Here, applied research is used as it is built to find out the issues that hinders in creating IT network in developing networks, this study would help us to find solutions for such issues and come up with practical solution to such problems.

FINDINGS

1. The decrease in coordination and transaction costs on account of information technology creates more opportunities for firms to make production “footloose”; it allows firms to base different parts of their business in different countries and connect them by real time information networks. The rapid growth in information services is thus facilitating the integrated international production of goods and services.
2. The introduction of information technology created new opportunities; new industries which include software development and data processing activities, a dynamic area in international trade. Thus, the developing countries are, with the right effort, particularly well placed to exploit these new opportunities on account of their labor cost advantage. Thus, IT contributes in opening jobs for the developing world.
3. Introduction of IT in such countries would help in improving resource management in the public sector.
4. Issues involved in countries like Pakistan, of why the available resources are not appropriately used to avail opportunities within grasp-

1. Lack of Adequate (INFORMATION TECHNOLOGY) Education even in the presence of resources: There is a mismatch between the type of services/businesses the local software houses would like to get involved in and the businesses that can help them enter the global software market.
2. Inappropriateness of Technology: In the developing country the population has to first develop an awareness of role of IT in development, the potential business opportunities provided by IT and appropriateness of technology in relation to organizational capabilities.

1. Information technology can be introduced for economic development  by removing the issues discussed that could impede progress. Once, the hurdles are removed, the long-term issues of an educated and information-technology literate population, and sound telecommunication infrastructure would need greater attention. They can do it by-

1. Short-term considerations
2. Awareness
3. Long-term Approach

1. It is proposed that transformation of information poor countries into information rich can be achieved by –

1. Youth of North spending time teaching the youth in developing nations
2. Basic information technology equipment with low memory requirements be made available to the developing countries so that they become on line
3. Telecommunications infrastructure be improved and alternate arrangements like use of low orbiting satellites be made to link the schools in developing countries
4.  A UN Cyberspace agency be setup to facilitate the digital/on-line world immediately to everyone.

CONCLUSION

The impetus to the flow of investments from one economy to the other comes from the trend towards international integrated production whereby TNCs invest globally. In this process, the economic benefits are shared by both, the home as well as host countries. It may be inferred that the presence of sufficient information technology knowledge base in the package of incentives offered by the developing countries should improve prospects for attracting FDI.

The issues involved in the transformation of information poor into rich, the general assumption is that basic hindrance in this transformation is the unavailability of resources in these countries. But, this is always not true in the short-term case. Developing countries can share the benefits by increasing the efficiency in the use of available set of resources. Substantial headway can be made with the existing resources given a more considered approach to the problem. Policy makers at the government and organizational levels need to develop a sound understanding of the impact of technology in their objectives of improved economic welfare. Thus, the development of new Information technological industries requires government to design and pursue short-term and long-term policies in a realistic manner.