Global E-Commerce Back to Table of Contents. Going Global The Impact of E-Commerce on International...

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Going GlobalGoing Global

The Impact of E-Commerce onThe Impact of E-Commerce onInternational TradeInternational Trade

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Global E-CommerceGlobal E-Commerce

SectionSection 4-1

SectionSection 4-2

Chapter 4


Section 4-1Why It’s 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.

3Section 4-1


Section 4-1 Key Terms

globalization

culture

machine translation

human translation

Web globalists

4Section 4-1


The Global Marketplace

Our connection to the global community is continual and instantaneous.

The Internet, along with all of its technological advances, plugs you into business, political, and cultural news from just about anywhere at any time.

5Section 4-1


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 world’s markets and businesses

6Section 4-1



As you think about expanding your business into a new country, you’ll 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

7Section 4-1



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

8Section 4-1

Content Design Navigation



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

9Section 4-1



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

10Section 4-1

human translation the use of a multilingual person to change one language into another



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

11Section 4-1



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.

12Section 4-1



Present the pricing of your products in local currencies and factor currency fluctuations into your e-business’s pricing structure.

13Section 4-1

¥ £$Global e-commerce success is dependent on the accuracy of foreign-currency conversions.


Section 4-1 Review

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?

1.

2.

14Section 4-1


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.

15

4.

Section 4-1


Section 4-2Why It’s 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 16


Section 4-2Key Terms

protectionists

imports

tariffs

quotas

export

free trade

online dispute resolution

Section 4-2 17


Business Without Boundaries

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

18Section 4-2

Removing Geographic Barriers

19

Advantages and Disadvantages of Globalization

Section 4-2

increased competition for all businesses

expanded shopping alternatives to the online buyer

greater opportunities for small firms to compete with large firms

cross-cultural issues when marketing products to specific audience


20

The Changing Competitive Landscape

Section 4-2

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



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

21Section 4-2



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

protectionists those who favor government protection for domestic producers

22Section 4-2



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

23Section 4-2

imports goods that are manufactured in one country then shipped into another country for sale



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

24Section 4-2



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

25Section 4-2



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

26Section 4-2

The main goal of the WTO is to promote global free trade.



The world economy is becoming an information and communications technology (ICT)–based economy.

In developing nations, limited communications infrastructure to support Internet connectivity remains a barrier to growth.

27Section 4-2



Before launching into a new international market…

28Section 4-2

learn about national regulations.

learn about regional regulations.

learn about import restrictions.



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

29Section 4-2


Section 4-2 Review

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?

1.

2.

30Section 4-2

3.

4.


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