Essay Managing Trans-border Data Flows

882 Words 4 Pages
Managing the flow of data from regional offices, business partners, and customers around the world is an essential component to efficiently conduct business with any large multinational corporation (MNC). Advances in the Internet have allowed companies to more quickly collect accurate data to better coordinate and integrate all geographically dispersed subsidiaries (Sambharya, & Phatak 1990). Managing Trans-border Data Flows introduces many complex restrictions that corporations must address, which will be discussed in this paper. Additionally this paper will look into the major challenges in managing global telecommunications network as well as what corporations can do to manage international data communications (IDC).
Restrictions
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These guidelines have allowed MNC to conduct their business by following these standard policies.
Economic Issues The economic regulation of data flow is mainly to protect local industries. Countries enact these laws as a way to avoid loss of jobs (Waples & Norris 1992). These are the most restrictive laws that MNC must address. MNC must review each geographical area they are looking to move into to ensure that they can adjust their policies to match the restrictive laws in the host country. In some circumstances, seeking local partnerships might be the only option in order to do business in the host country (Waples & Norris 1992).
National Sovereignty National sovereignty issues include: cultural infringement, technological dependence and national security (Waples & Norris 1992). These restrictions are often more involved when dealing with developing countries (Waples & Norris 1992). These developing countries are concerned about building their own local capabilities so that they can also take part in the global economy (Waples & Norris 1992). Here MNC will need to show a willingness to help these countries develop their technologies as well as help in training. TDF restrictions can cause delays and add complexity when dealing with various countries privacy laws, but MNC have no choice but to adjust their information systems to best match those restrictions in order to conduct their business.

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