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Chapter one IT 205 study guide - In 2007 American...

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In 2007, American businesses will invest nearly $1 trillion in information systems hardware, software, and telecommunications equipment—more than half of all capital investment in the United States. In addition, they will spend another $250 billion on business and management consulting and services—much of which involves redesigning firms’ business operations to take advantage of these new technologies. More than half of all business investment in the United States each year involves information systems and technologies. In 2007, more than 40 million businesses had dot-com Internet sites registered. Six million Americans purchase something every day on the Internet, 19 million researches a product, and 38 million use a search engine. In 2006, FedEx moved in the United States nearly 200 million packages, mostly overnight, and the United Parcel Service (UPS) moved more than 570 million packages. As newspaper readership continues to decline, 94 million people read at least some of their news online. Sixty million bank online, and 55 million now read blogs, creating an explosion of new writers, readers, and new forms of customer feedback that did not exist before. E-commerce and Internet advertising are booming: Google’s online ad revenues surpassed $10 billion in 2006. Internet advertising continues to grow at more than 15 percent a year, at the expense of traditional media, reaching more than $18 billion in revenues in 2007. New federal security and accounting laws require many businesses to keep e-mail messages for five years. Coupled with existing occupational and health laws requiring firms to store employee chemical exposure data for up to 60 years, these laws
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are spurring the growth of digital information now estimated to be 5 Exabyte’s, equivalent to 37,000 Libraries of Congress. In 1492, Columbus reaffirmed what astronomers were long saying: the world was round and the seas could be safely sailed. By 2005, journalist Thomas Friedman wrote an influential book declaring the world was now “flat,” by which he meant that the Internet and global communications had greatly reduced the economic and cultural advantages of developed countries. U.S. and European countries were in a fight for their economic lives, competing for jobs, markets, resources, and even ideas with highly educated, motivated populations in low-wage areas in the less developed world (Friedman, 2005). This “globalization” presents you and your business with both challenges and opportunities. A growing percentage of the economy of the United States and other advanced industrial countries in Europe and Asia depends on imports and exports. In 2007, more than 33 percent of the U.S. economy resulted from foreign trade, both imports and exports. In Europe and Asia, the number exceeds 50 percent. Many Fortune 500 U.S. firms derive half their revenues from foreign operations.
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