S+-+the+importance+of+ICT

Advances in transport, communications and increased links underpin changes in manufacturing and services, enabling thme to become a worldwide affair. There has been a decline in the costs of air and sea transport and this is due to the advances made in communications due to the increase in the number of satellites. As well as satellites, submairne cables have been built allowing global communication between different parts of the same TNCs.


 * Small industrial region with global connections**

ICT and the use of the internet has led to the development of localised industrial regions with Global connections. It is important that you can name an example and explain how ICT helps the company to develop. Features of Silicon Valley
 * Silicon Glen is a great example of a localised industrialised area with global connections. Silicon Glen is located in central Scotland.
 * many foreign-owned electronic companies
 * Products range from security systems, computer software and TVs
 * It has grown due to investment from the EU and TNCs from Asia
 * The internet is very useful as the factories can easily communicate with the headquarters in Asia (Mitsubishi and Motorola) ||  ||    * It is near to several universities - there is a good supply of skilled workers
 * It has good motorway links and is near an airport - this allows for easy movement of goods and people to and from the site
 * The universities are also involved in research and development so that the area has become a world centre for micro-electronics design
 * The internet is also useful as people who are working in different parts of the world can communicate quickly and easily with each other ||


 * The development of call centres abroad**

The setting up of call centres is big business and a total of 400,000 people are employed in the UK, often in small towns such as Harrogate, Carlisle, Gateshead and Warrington. Banks and other finance companies such as insurance were among the first to develop centralised call centres and the first to look aborad. Household names such as ASDA, Tesco, BA, Barclays, Lloyds, TSB, HSBC and Virgin Media have all set up call centres in India. It is the big cities that house these, such as Mumbai, Delhi, Hyderabad and Bangalore. Other important destinations for call centres abroad are South Africa and the Phillippines.


 * Advantages of having a call centre in a LEDC for a TNC**
 * 10% of India speak English fluently (about 100 million people)
 * 80% of the people living in urban areas are literate (can read and write) and 18% of these are graduates
 * Operating costs are between 10 and 60% lower than in the UK
 * Salaries are lower e.g. £1,200 per year in contrast to £12,000 per year in the UK
 * Low staff turnover, working nine-hour shifts at time to fit in with orgin-country of company
 * development of ICT allows fast and clear communication