From Palvia, P., Palvia, S., and Harris, A (eds). "Managing Global Information Technology: Strategies and Challenges." Ivy League Publishing, 2007. ISBN 0-9648382-4-9 Corporate IT Strategies in the Global Economy Charlie C. Chen Albert L. Harris Appalachian State University, USA CHAPTER SUMMARY Companies in all countries of the world are going global. As they do, they are challenged by a multitude of forces. To be successful in this age of multinational corporations, it is imperative that a global information system strategy be developed to overcome the complexities of global business. This chapter examines corporate information technology strategies in the global economy from five levels: global, regional, national, corporate, and individual. To do this, we first look at global information technology issues for four general categories of countries: Developed, Newly Industrialized, Developing, and Underdeveloped. We use several well known models and frameworks to examine information technology strategy development for multinational companies. We conclude by assessing the impacts of virtuality and virtual teams in global information technology strategy development. INTRODUCTION Multinational enterprises (MNEs) relentlessly seek business solutions to the impacts of a saturated domestic market, slowed domestic market growth, increased labor costs, and shortage of specialized labor. One solution is to enter international markets. Other forces are also accelerating the degree of globalization, such as the rise of global standards, global products, global services, and global customers, privatization, advances in information and telecommunication technology (ITT), the growing trade investment, emerging economies, and the emergence of world trade organizations. The degree of interconnection among the world economies continues to grow with the increased ubiquity of telecommunication and networking technology. More than 95% of the Fortune 500 companies have some type of global operations. Many companies in their home countries, particularly in emerging economies, are facing the threats from overseas competition. The dynamics of international competition has given many companies only two strategic options: “go global” or “go bankrupt.” This is in conformance with the then Labor Secretary in the Clinton administration, Mr. Robert Reich, who said "Companies that globalize will make history; those who do not will become history."