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The central computing era saw a gradual trend toward globalization, mostly through IBM’s activities. International Business Machines, Inc., was aptly named, as it was international in focus even before the computer was invented.

During the central computing era, IBM aggressively marketed its products around the world, getting into markets before either other U.S. companies could enter or domestic competitors could spring up. It was largely because of IBM’s efforts that computer technology was adopted so widely around the world.

While it initially globalized its operations by setting up local sales and distribution operations, IBM also moved more gradually to globalize its production, design, and even R&D activities. The company set up factories, labs, and international procurement offices in Europe, Japan, and even in some developing countries.

In 1972, IBM World Trade (representing non-U.S. operations) was active in 126 countries, with 22 manufacturing plants and 115,000 employees. This was done partly to serve those markets better, partly to develop a better and cheaper supplier base, and partly to respond to government demands in many countries for local production and exports.

Governments in Japan and Europe were concerned about trade deficits in computers, and IBM responded with a strategy aimed at balancing its own trade among the U.S., Japan, and Europe. Outside of IBM, however, the mainframe and minicomputer industries were not very globally oriented.

Related posts:

1. Globalization of Production in the Central Computing Era (2)
2. Globalization of Production in the Central Computing Era (3)
3. The Mainframe of Computing Era
4. Stages of Development in the Computer Industry
5. Globalization of the Computer Industry (3)

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