Increased investment in countries with lower cost resources is increasing both their shares of world output and merchandise exports. Two main forces are spurring the globalization of markets and production. Lower Trade and Investment Barriers GATT is an international treaty setting specific rules for international trade designed to pry open national markets. Nations are integrating their economies as never before. Increased Innovation Advancements in information technology are making it easier, faster, and less costly to move data, goods, equipment, and people across borders.
Companies use the Internet to stay in touch with production and distribution in subsidiaries abroad.
Employees are able to access their company's databases using a personal computer from nearly any location worldwide. These systems are being developed to give distributors and suppliers access to a company's database so that they can place orders or monitor inventories electronically. Computer technologies are increasing the competitiveness of small companies by reducing the costs of reaching an international customer base. Most Internet sites suffer losses for at least three years before they turn profits. Some Internet-based companies pose a threat to competitors who rely solely on traditional distribution methods.