E-Commerce

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GlobalE-Commerce
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Chapter 4
Global E-Commerce
Going Global
The Impact of E-Commerce onInternational Trade
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Section 4-1Why Its Important

• Companies engaged in the global market enjoy the
  potential for increased revenues, but also face
  greater challenges in certain areas of their
  business.
• Ensuring respect for the various cultures
  involved is essential to success in the global
  arena.

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Section 4-1
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Section 4-1 Key Terms

• globalization
• culture
• machine translation

• human translation
• Web globalists

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Section 4-1
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The Global Marketplace

• Our connection to the global community is
  continual and instantaneous.
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• The Internet, along with all of its technological
  advances, plugs you into business, political, and
  cultural news from just about anywhere at any
  time.

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Section 4-1
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Challenges of Global E-Commerce

• In the e-business world, globalization
  specifically refers to the process of adapting a
  business Web site to meet the needs of users in
  various countries.

globalization enhancing connectivity and
interdependence among the worlds markets and
businesses
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Section 4-1
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Challenges of Global E-Commerce

• As you think about expanding your business into a
  new country, youll also want to consider
  culture.

culture a way of life that includes behaviors,
beliefs, values, and generally accepted symbols
for a group of people culture can describe a
religion, race, gender, or geographic region
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Section 4-1
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Challenges of Global E-Commerce

• To prepare a Web site that does business
  globally, be aware of the following issues

Content
Design
Navigation
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Section 4-1
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Challenges of Global E-Commerce

• E-commerce companies need to offer potential
  customers a selection of languages to increase
  their chances of selling their products and
  services.

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Section 4-1
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Challenges of Global E-Commerce

• You can use machine translation or human
  translation to prepare your Web site for
  audiences who speak different languages.

machine translation translating English text
into another language using a software
application
human translation the use of a multilingual
person to change one language into another
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Section 4-1
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Challenges of Global E-Commerce

• Web globalists help companies to determine
  whether online selling in a global market will be
  profitable based on both their product and
  service lines and their organizational structure.

Web globalists consultants who advise companies
on how to design their Web sites and market and
sell their products effectively to international
audiences
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Section 4-1
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Challenges of Global E-Commerce

• To conduct business globally, you not only have
  to deal with customers who speak a foreign
  language, you also have to use communications
  systems based in that language.

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Section 4-1
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Challenges of Global E-Commerce

• Present the pricing of your products in local
  currencies and factor currency fluctuations into
  your e-businesss pricing structure.

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Section 4-1
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Section 4-1 Review
1.

• What is culture? How does culture impact the way
  businesses market and sell their products and
  services online?
• Describe two ways to translate Web site content
  into another language. Which factors should be
  considered when having a Web site translated?

2.
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Section 4-1
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Section 4-1 Review

• How can dealing with customers who speak a
  foreign language affect your ability to
  communicate with them over the Internet?
• Why is it important for companies doing business
  globally to become familiar with international
  regulations and import restrictions?

3.
4.
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Section 4-1
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Section 4-2Why Its Important

• As businesses seek to sell goods in the global
  market, it is essential they be aware of the
  rules and regulations unique to this segment of
  e-commerce.

Section 4-2
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Section 4-2Key Terms

• protectionists
• imports
• tariffs
• quotas

• export
• free trade
• online dispute resolution

Section 4-2
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Business Without Boundaries

• E-commerce has changed the boundaries of
  traditional commerce and impacted competition
  among companies.

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Section 4-2
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Removing Geographic Barriers
Advantages and Disadvantages of Globalization
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Section 4-2
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Removing Geographic Barriers
The Changing Competitive Landscape
reduced need for intermediaries
increased efficiency and larger markets
lower costs
consumers are in a stronger position to set
prices
greater competition among businesses
online price competition affects
bricks-and-mortar prices and profits
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Section 4-2
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Removing Geographic Barriers

• As economies increasingly engage in international
  e-commerce, governments and individuals are
  examining their policies and positions on
  international trade.

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Section 4-2
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Removing Geographic Barriers

• Protectionists believe that protecting U.S. jobs
  supports a more vibrant domestic economy.

protectionists those who favor government
protection for domestic producers
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Section 4-2
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Removing Geographic Barriers

• To provide a competitive advantage to domestic
  producers, many governments impose tariffs on
  imports.

tarrifs taxes or fees that various governments
place on selected imported products
imports goods that are manufactured in one
country then shipped into another country for
sale
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Section 4-2
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Removing Geographic Barriers

• To provide a competitive advantage to domestic
  producers, many governments set quotas on imports.

quotas prescribed quantities or maximum amounts
of imports allowed into a country
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Section 4-2
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Removing Geographic Barriers

• Many countries prefer domestic companies to
  produce enough products to meet local demand and
  then export the excess to foreign countries.

export product sold in a country other than
the one in which it was produced
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Section 4-2
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Removing Geographic Barriers

• The World Trade Organization (WTO) is designed to
  monitor trade and help resolve disputes among its
  member countries.

free trade trade among countries without
barriers such as tariffs or quotas
The main goal of the WTO is to promote global
free trade.
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Section 4-2
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Removing Geographic Barriers

• The world economy is becoming an information and
  communications technology (ICT)based economy.
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• In developing nations, limited communications
  infrastructure to support Internet connectivity
  remains a barrier to growth.

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Section 4-2
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Removing Geographic Barriers

• Before launching into a new international market

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Section 4-2
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Removing Geographic Barriers

• One of the main challenges facing international
  e-commerce is online dispute resolution (ODR).

online dispute resolution (ODR) the process of
resolving cross-border disputes in the
electronic-business environment
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Section 4-2
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Section 4-2 Review
1.

• How do the import and export of goods differ?
• What is the World Trade Organization, and what is
  its main goal?
• What potential barriers exist for developing
  countries entry into e-commerce?
• What is a protectionist? How might a
  protectionist in the U.S. feel about importing
  lumber from Canada and why?

2.
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4.
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Section 4-2
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