As Chapter 1 noted one of the drivers of globalization is techno-logical change in communications, which has made it easier for entrepreneurs and organizations to identify promising opportunities in foreign markets. Conversely, inadequate communication facilities can be an important factor limiting economic progress in developing countries. In many of these countries, provision of telephone service was often left in the hands of undercapitalized. inefficient state-run monopolies, staffed by inadequately trained and poorly motivated bureaucrats. The advent of the cell phone, however, has allowed many countries plagued by poor land-line service to bypass these problems. Some studies indicate that increasing the cell phone penetration rate (the percentage of the population with cell phone service) by 10 percentage points boosts per capita GDP by 059 percent. Increased access to communication services promotes economic growth in many ways, some obvious, some subtle. Improved communications make it easier for entrepreneurs to learn about new market opportunities: but they also make markets more efficient, lowering prices and reducing the waste of resources. For example, one small Indian farmer decided to rent his tractor to other local farmers when he didn't need it for his own crops. He fore he owned a cell phone, he often had to leave his own farm for an entire day to handle a routine tractor rental,
A matter that now takes but a few minutes on the cell pi Cell phones have also aided small fishermen in Kerala in the south of India After catching a good haul of sarc they typically headed for their home port without knowing what price their catch would bring at the dock. If other fisherman had good luck as well. they might find the pric their catch depressed. even though the price might be higl the next port up the coast. Sometimes they were forced to ( their catch if the local market were oversupplied and there simply no buyers. Now. though. they can call all the bi within the region and head for the port that offers the best The simple introduction of cell phones made the market efficient and eliminated the wasteful dumping of Fishermen's profits rose by 8 percent while average prices by consumers fell 4 percent. Cell phone manufacturers and equipment supplier eagerly pursuing opportunities in emerging markets. industry's goal is to sell more than a billion units annually in most developed countries. cell phone penetration is Some Western European countries have more cell p accounts than people. Suggesting very limited growth pros there. In the United States, 80 percent of Americans have. phone account, and only 1.2 million new accounts are co
What are the relative opportunities for standardization and customization in the cell phone industry?