Internet Effects on Globalization Drivers

Internet Effects on Globalization Drivers
Industries differ in their globalization potential (Yip 1989 and 1992) and in their degree of Internet use. But, as demonstrated below, increasing Internet use accelerates the pace of globalization, but in differing ways for different industries (Table 1).
[Table 1. Summary of Internet Effects on Industry Globalisation Drivers]
Market Globalization Drivers
The Internet affects industry specific market globalization drivers in several ways. In addition, use of the Internet still varies greatly by country—from now nearly 50% of the adult population in the United States to under 5% in Russia, China and India (Figure 3). So the location of an industry’s key markets also matters.
[Figure 3. Use of Internet in Key Economies]
The Internet increases global commonality in customer needs and tastes. When customers in an industry have needs and tastes that are mostly common across countries, companies can make more use of global strat...