Many companies operate on a global scale, and are most likely to locate in countries where barriers to entry are low, and where the labour force is educated and flexible. People and ideas are increasingly the source of competitive advantage. All these changes have fundamental implications for rural Scotland and the ways in which Governments can devise policies. They bring challenges and opportunities for the people of rural Scotland. A practical effect of these changes is that the old constraints of location which have hindered economic development in much of rural Scotland have been significantly reduced.
People can keep in touch from anywhere in the world through the use of telephone, fax and modem.
The Internet provides access to instantaneous information, and allows a business or town to advertise itself to a global audience. People can choose their bed and breakfast in Banchory or Biggar from the United States or Australia. On-line shopping over the Internet enables the individual to buy a specific compact disc or book from a specialist supplier. By setting up a website the manufacturer or craftsman working in a remote glen has access to a world market. Substantial investment by the telecommunications companies and by Highlands and Islands Enterprise means that rural areas of Scotland can benefit from these developments.