Abstract
Global production is a new stage in international trade, facilitated to a great extent by new information technologies (NIT) which enable the exploitation of comparative advantages and the control of production in remote locations. This is increasingly evident in informationintensive industries, which seem to be the main beneficiaries of the new opportunities offered by NIT. However, global production must overcome numerous cost, language and cultural barriers. The objectives of the paper are to illustrate the emerging ‘global-local’ firm which evolves under a new ‘core-periphery’ relationship, and to understand how barriers affect the ability to compete in a remote market and how organizational adjustments and telecommunications serve that end. Using a case study, focusing on a software company based in Israel, which produces solely for the Japanese corporate market, a micro-level analysis is presented, exhibiting the complimentarity of a variety of NIT media and travel. The latter mode seems to be crucial in the wake of cultural barriers. The company has also adjusted its organizational structure to overcome such barriers.
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