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. They use the World Wide Web to cut post-production costs by bypassing intermediaries like wholesalers and retailers, and to expand their customer base worldwide. Transportation Technology Advances in transportation methods are helping to globalize both markets and production activities. Containerization in shipping allows the same containers to be transferred among trucks, trains, and ships-thus increasing the efficiency of international shipping. Companies go international for one of two general purposes-to increase sales or access resources.