Module 5: Critical Thinking
Kevin Schook
ISM510 - Information Technology in the Global Enterprise
Colorado State University – Global
Dr. Omondi Opala
April 12, 2015

Module 5: Critical Thinking
Regulating data flows
Regulation of cross border data flows or data protection regulation has had negative implications on sectors of the economy, business, organizations that are public and NGOs. The public has been very narrow when it comes to data protection regulation. Even when discussed the public has concerns about the costs that it would take to implement a proper regulation. The public would be taking a risk that involves unintended consequences that could become over-looked and even produce negative consequences that could restrict existing business opportunities.
The level of data protection subjects are not improved because of ineffectively designed measures, poor targeting of instruments, and the public narrow view on cross border data regulation. The end result is excessive opportunity costs to society, businesses along with consumers, and leaving everyone else in a bad position. Here are some negative impacts that result from cross border data restrictions: 1. Cross border data flow of customers to foreign countries is prohibited. 2. Cross border data flow of employees to other businesses in foreign countries is prohibited. 3. IT/Server infrastructure forced to another location.
Business impacts
Some of the issues stated above are trade barriers because they restrict international-trade; this means multi-national firms cannot consolidate operations across territories. Now they cannot reap the benefits of these economies by offering competitively price services to enter a national market. The employee data prohibition of data across borders limits the opportunities of businesses to match the best skills available. The business