Networked 
        Economy  
  
      
	  James Wong |
          Weny Isawati |
          Chad Rissman |
          Gregg Davison 
	   
       
        
      
	   
      The readiness of Brazil and Argentina in the networked economy framework 
        is determined by their participation in the networked world with their 
        businesses and government involvement in employing information and communication 
        technologies. Brazil possesses large and well-developed agricultural, 
        mining, manufacturing, and service sectors, which outweighs other South 
        American countries and expands itself in world markets. After real wages 
        fell from 2001 lasted until 2003, Brazil's economy grew only 1.1% per 
        year. Likewise, Argentina promotes rich natural resources, a highly literate 
        population, an export-oriented agricultural sector, and a diversified 
        industrial sector. However, Argentina's economic growth suffers with the 
        growth of -0.8% in 2000. Their economic problems lead to currency devaluation. 
        With the above background, both of Brazil and Argentina offer unique ICT 
        Employment Opportunities, B2C and B2B electronic commerce, and E-Government, 
        opportunities and challenges. 
      ICT Employment Opportunities - Stage 3(Brazil) 
        Stages 2(Argentina) 
        The current IT market in Argentina, which is the third largest in Latin 
        America, causes shortages of local opportunities. ICT professionals have 
        to look elsewhere for jobs or work for a local firm at lower wages. U.S. 
        companies are cutting costs, which reduce outsourcing opportunities in 
        Argentina and there are declining outlets for IT professionals to find 
        jobs in the US. Argentina's ICT opportunities started to decline after 
        the fall of the dot-com market in 2000. Based on the fact that ICT professionals 
        are in abundance, but must find work elsewhere, categorizes Argentina 
        at Stage 2 of the Networked Economy Framework for ICT Employment Opportunities. 
        However, the need for them is growing. The education level in Argentina 
        is ranked higher than Brazil and has a smaller population, thus, there 
        is a better opportunity for Argentina to move up the framework at a faster 
        rate. The Brazilian workforce has an adequate education system at its 
        foundation. There are many skilled workers and a growing number of technology, 
        engineering and science professionals. Although the country has many issues 
        that are pressing which will damage the productivity of the workforce, 
        such as poverty and infrastructure problems, there are many things advantageous 
        as well. According to Ben Goertzel, CEO of Biomind LLC, a bioinformatics 
        company in Silver Spring, Md., he stated that "Brazil comprises highly 
        skilled IT professionals, a tradition of high quality software engineering, 
        and a relatively short flight time from the U.S. East coast to hold in-person 
        meetings several times annually. The fact is the economy kills the IT 
        industry for those who are highly skilled. They long for greener pastures." 
        In conclusion, Brazil has characteristics of Stage 3 and part of Stage 
        4 in the framework because of the centralization of the information and 
        communication technologies in many local organizations and a large employment 
        of local IT professionals by other countries. 
      B2C Electronic Commerce - Stage 3(Brazil) 
        Stage 4(Argentina) 
        Despite having an enormous division among the rich and the poor, Brazil 
        seems to be in a positive situation in regards to B2C electronic commerce. 
        The Brazilian Government realized that liberalization towards investments 
        and trade could help the country's economical growth in particular areas, 
        including e-commerce and its e-commerce opportunities develop tremendously. 
        Additionally, Brazil removed restrictions on foreign direct investments 
        that attracted foreign investors. Many businesses throughout the country 
        as a whole do not have the resources to incorporate the World Wide Web 
        into their sales, marketing and customer service systems. Throughout the 
        visit, excluding CDI, all of the companies we visited were large companies 
        with access to many resources to perform business online. There was an 
        unnoticeable difference between these companies in Brazil in comparison 
        to companies in the U.S. and Europe. According to statistics from the 
        International Telecommunication Union (ITU), Argentina has over 4 million 
        Internet users, which represents about 33% of Internet users throughout 
        the country. Argentina is one of the dot-com leaders of Latin America 
        with the number of Argentine Internet start-ups is higher than in most 
        of the region and the e-commerce business is booming. 
      B2B Electronic Commerce - Stage 4(Brazil) 
        Stage 4(Argentina) 
        Both Brazil and Argentina seem to be progressing in creating and maintaining 
        B2B electronic commerce. Both countries are taking a huge advantage of 
        B2B business domestically as well as internationally. According to the 
        Yankee Group, Latin American companies will conduct $63.8 billion of online 
        business-to-business transactions by 2005. This enormous number is the 
        result of a couple of main developments that include the arrival of increased 
        bandwidth and the purchase of more sophisticated computers throughout 
        smaller companies. Additionally, Brazil's liberalization has strengthened 
        the trade links between international supply chains for many different 
        industries. Both countries lean towards stage 4 than stage 3 due to the 
        huge gap between some parts of the country. 
      E-Government - Stage 3(Brazil) Stage 3(Argentina) 
        Argentina was at Stage 3 because they primarily use the government website 
        for informational purposes. The assumption was based on Buenos Aires' 
        government website, which offers notifications, city activities, city 
        services, contacts, city news, and travel information. The website does 
        not provide any online commerce transactions. Likewise, Brazil's government 
        websites for the cities of Sao Paulo and Rio de Janeiro are mainly for 
        local information and news. Thus, Brazil is positioned at Stage 3 in the 
        framework. Both countries have the resources to invest or create more 
        advanced websites to provide a wide range of services including payment 
        transactions. 
        
       
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