Q. Describe Breaking Geographic Business Barriers?

Several companies today operate from several locations and have customers or suppliers at distant locations and do business in regional or national or global markets. Information technology smashes the geographic barriers that hinder the managerial control of operations raise the cost of doing business and limit the quality of services and the coverage of potential markets. Consequently the telecommunications networks have become a vital IT component of business operations today. The intranets, internet, extranets and other telecommunications as well as computing technologies make it possible to distribute key business activities to where they are most needed where they are best performed or where they best support the competitive advantage of a business. These networks connect remote locations with other company headquarters and external entities such as customers, suppliers, consultants and other business partners. All of these entities is able to participate in business activities if geographical barriers didn't exist.

Exp - Citibank moved its complete credit card operations to South Dakota during the 1980s for the reason that of high labour costs and restrictions on it by the state of New York. The telecommunications networks make possible them to move part of its operations to distant locations with lower costs and a better workforces and less restrictive Government regulations.