ICT and transport developments

Improvements in ICT and transport have increased the rate of globalisation. In particular, they have been responsible for the spread of manufacturing and services worldwide.

Communication that has enabled companies to operate worldwide:

• Phones: These allow calls and telephone conferencing. Businesses may use this when they have audio portions for participants to listen to - it may be combined with cameras
• Fax machines: Often the preferred method of communication for businesses and organisations. Faxes can be sent over a wireless connection.
• Computers - The internet: Email, social media, instant messaging can be sent anywhere in the world. Businesses and organisations usually use an inside provider to set up accounts for their employees, clients and other personelle. 
• Video conferences: ideal communication for global businesses.

Much of the advances in communication are the result of developments in satellites. A satellite is an object that revolves around the earth following a particular path or orbit. They are built for specific purposes, e.g weather or communications satellites. The media is dependent on satellites for television, particularly transmitting live TV. This means that communications such as live video conferencing and calls have been made possible by the developments in satellites. In this way, communications have largely improved, leading to the spread of manufacturing services worldwide. 

Additionally, development of submarine cables have been important in allowing operations for both manufacturing and service industry. These underwater cables link western Europe with south - east Asia, The middle East and Australia, providing high speed of data. 

Transport methods used by Lee Cooper Jeans:

• Horse
• Vans for delivering goods within the UK
• Ships for supplying international goods. E.g from Frankfurt to Milan
• Planes for supplying international goods. E.g from Benin to Tunis
• Lorry
• Channel Tunnel

Over the last 50 years each form of ICT has improved. Communication as well as transport has become quicker, cheaper, able to do more and used by more people in more countries around the world. How do improvements in transport help countries like Lee Cooper to have offices and factors located in different countries around the world? 

• Improvements in transport help link together the producers and consumers easily. 
• Advancement in air technology allow company officials and managers to visit factories and offices in different parts of the world within a matter of hours. As air travel is now used by more people in more countries around the world, companies like Lee Cooper can now access easily countries such as Tunisia and Namibia ( developing countries) 
• As transport such as Air travel and Sea travel has become cheaper, it is now more cost effective for companies such as Lee Cooper to have factories and offices located in parts of the world where there are tax incentives. (E.g Benin) This tends to increase the companies profit, because producing goods in developing countries decreases costs (Profit = revenue - costs).
• Quicker transport links also mean people are able to travel more, making it more favourable to have head offices in developed countries like England, but factories in poorer countries where companies can claim tax benefits. Managers are able to easily travel back and forth between the two countries.