Page 69 - DMGT545_INTERNATIONAL_BUSINESS

International Business

notes 3. Changing Relationships with Suppliers: The relationships maintained by the suppliers
have dramatically changed from traditional procurement to e-procurement, e-supply
chain management, global integration etc. which has given rise to quality, efficiency, of
production in less time.
4. Changing the Basis for Competition: Technology has formed as a main basis for competition,
the superior technology used by the business firms has resulted in improved quality of
producing goods, improved efficiency by automation and mechanization, Total Quality
Management (TQM).

Note Expert System is a specialized application that performs tasks that would
normally be done by a human. Ex: Medical diagnosis Credit History.

self assessment

Fill in the blanks:
1. Some Communication Tools used in International Business are ................, ................ and
................ .
2. Group Decision Support System is a system with set of ................, ................ and ................
that support a people occupied in a decision-related meeting.
3. The relationships maintained by the suppliers have changed from ................ procurement
to ................ procurement
4.1.4 features of technology

The following are the features of technology:
1. Technology Brings Change: Technology brings change in every walk of life, like the way
we cook, the way we commute, the way we communicate etc. technology has brought lot
of changes in business from barter system to e-business.
2. Technology Reduces Time: Technology has drastically reduced time between conceiving
an idea and implementing that idea. The world has become a global village, which has no
barriers by the invention of internet technologies which has reduced time of transferring
information in no time.
3. Technology Reduces Distance: With the invention of advanced transportation systems
which has reduced the time to travel e.g, by the invention of supersonic jets etc.
4. Technology Improves Quality of Life: The quality of life of people has definitely improved,
the advancements of medical technology the life expectancy rate are increased and the
control of various diseases is possible.

4.1.5 Diffusion of technology

Diffusion is a process of spreading, if a bottle of perfume is opened the molecules will diffuse in
the entire atmosphere similarly the technology will diffuse in the following ways:
1. Joint Ventures: Two companies A and B can jointly work on a venture for a certain period
by exchanging technology, human resources etc.
2. Licensing: Companies in the domestic market can produce the produce the products by
license permission from MNCs.

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