MGMT1101 Lecture Notes - Lecture 6: Digital Divide, Reverse Engineering, World Intellectual Property Organization
19 May 2018
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Chapter 6 – The Great Digital Divide (Technological)
The role of technological change – lowering of trade barriers
- Microprocessors and Telecommunications: Enabling explosive growth of high-power, low-
cost computing, vastly increasing info that can be processed by individuals and firms.
➢ Moore’s Law: The preise that the power of iroproessor tehology doules ad its
cost of production drops by half every 18months
- Internet and World Wide Web (WWW)
➢ Rolls back some of the constraints of location, scale and time zones.
➢ Easier for buyers and sellers to find each other
➢ Allows businesses to expand their global presence at a lower cost than ever
➢ 24/7 operation
- Transportation Technology
➢ Logistic performance
➢ Containers, Commercial jet – reduce time needed to get from one mode of transport to
another.
➢ Retain competitiveness
➢ What factors will add to trade cost:
1. Efficiency of the clearance process by border control agencies
2. Quality of trade and transport infrastructure
3. Ease of arranging competitively priced shipments
4. Competence and quality of transport operators and customs brokers
5. Ability to track consignments
6. Timeliness of delivery
Implications for globalisation of production and markets:
- Advancement in technology such as transport and ICT
- No longer necessary to produce goods close to where they are consumed
- Resulting in rapid increase in trade and FDI
- DESPITE the trends,
- Must not overemphasise the importance of technology.
- Significance of national differences in culture, consumer preferences and business practice
EXISTS.
Intellectual Property (IP): Products of the human mind, ownership of which is protected by law.
- Patents: Grant investor of new product/process exclusive rights for a defined period to the
manufacture, use or sale of invention
- Trademarks: Designs and names, often officially registered, by which merchants or
manufactures designate and differentiate their products
- Copyright: Exclusive legal rights of authors, composers, playwrights, artists, and publishers
to publish and dispose of their work as they see fit.
➢ Why?
- Legal system
Common vs Civil law
Effectiveness of law enforcement
- Cultural values: different perceptions of property and property ownership
- Level of economic development
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Chapter 6 the great digital divide (technological) The role of technological change lowering of trade barriers. Microprocessors and telecommunications: enabling explosive growth of high-power, low- cost computing, vastly increasing info that can be processed by individuals and firms. Moore"s law: the pre(cid:373)ise that the power of (cid:373)i(cid:272)ropro(cid:272)essor te(cid:272)h(cid:374)ology dou(cid:271)les a(cid:374)d its cost of production drops by half every 18months. Rolls back some of the constraints of location, scale and time zones. Easier for buyers and sellers to find each other. Allows businesses to expand their global presence at a lower cost than ever. Containers, commercial jet reduce time needed to get from one mode of transport to another. Advancement in technology such as transport and ict. No longer necessary to produce goods close to where they are consumed. Resulting in rapid increase in trade and fdi. Must not overemphasise the importance of technology. Significance of national differences in culture, consumer preferences and business practice.
