Global
E-Commerce
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Chapter 4
Global E-Commerce
Section
4-1
Going Global
Section
4-2
The Impact of E-Commerce on
International Trade
2
Global E-Commerce
Section 4-1
Why 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.
Section 4-1
3
Global E-Commerce
Section 4-1
Key Terms
globalization
culture
machine translation
Section 4-1
human translation
Web globalists
4
Global E-Commerce
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.
Section 4-1
5
Global E-Commerce
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.
Section 4-1
globalization
enhancing connectivity
and interdependence
among the world’s
markets and businesses
6
Global E-Commerce
Challenges of Global
E-Commerce
As you think about
expanding your business
into a new country, you’ll
also want to consider
culture.
Section 4-1
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
7
Global E-Commerce
Challenges of Global
E-Commerce
To prepare a Web site that does business
globally, be aware of the following issues:
Content
Section 4-1
Design
Navigation
8
Global E-Commerce
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.
Section 4-1
9
Global E-Commerce
Challenges of Global
E-Commerce
You can use machine
translation or human
translation to prepare
your Web site for
audiences who speak
different languages.
Section 4-1
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
10
Global E-Commerce
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.
Section 4-1
Web globalists
consultants who advise
companies on how to
design their Web sites
and market and sell their
products effectively to
international audiences
11
Global E-Commerce
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.
Section 4-1
12
Global E-Commerce
Challenges of Global
E-Commerce
Present the pricing of your products in local
currencies and factor currency fluctuations into
your e-business’s pricing structure.
$
¥
£
Global e-commerce success is dependent on the
accuracy of foreign-currency conversions.
Section 4-1
13
Global E-Commerce
Section 4-1
Review
1.
What is culture? How does culture impact
the way businesses market and sell their
products and services online?
2.
Describe two ways to translate Web site
content into another language. Which
factors should be considered when having
a Web site translated?
Section 4-1
14
Global E-Commerce
Section 4-1
Review
3.
How can dealing with customers who speak
a foreign language affect your ability to
communicate with them over the Internet?
4.
Why is it important for companies doing
business globally to become familiar with
international regulations and import
restrictions?
Section 4-1
15
Global E-Commerce
Section 4-2
Why 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
Global E-Commerce
Section 4-2
Key Terms
protectionists
imports
tariffs
quotas
Section 4-2
export
free trade
online dispute resolution
17
Global E-Commerce
Business Without
Boundaries
E-commerce has changed the boundaries of
traditional commerce and impacted competition
among companies.
Section 4-2
18
Removing Geographic Barriers
Advantages and Disadvantages of Globalization
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
Section 4-2
19
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
Section 4-2
20
Global E-Commerce
Removing Geographic
Barriers
As economies increasingly engage in
international e-commerce, governments and
individuals are examining their policies and
positions on international trade.
Section 4-2
21
Global E-Commerce
Removing Geographic
Barriers
Protectionists believe that
protecting U.S. jobs
supports a more vibrant
domestic economy.
Section 4-2
protectionists those
who favor government
protection for domestic
producers
22
Global E-Commerce
Removing Geographic
Barriers
To provide a competitive
advantage to domestic
producers, many
governments impose
tariffs on imports.
Section 4-2
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
23
Global E-Commerce
Removing Geographic
Barriers
To provide a competitive
advantage to domestic
producers, many
governments set quotas
on imports.
Section 4-2
quotas prescribed
quantities or maximum
amounts of imports
allowed into a country
24
Global E-Commerce
Removing Geographic
Barriers
Many countries prefer
domestic companies to
produce enough products
to meet local demand and
then export the excess to
foreign countries.
Section 4-2
export product sold
in a country other than
the one in which it was
produced
25
Global E-Commerce
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.
Section 4-2
26
Global E-Commerce
Removing Geographic
Barriers
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.
Section 4-2
27
Global E-Commerce
Removing Geographic
Barriers
learn about national
regulations.
Before launching
into a new
international
market…
learn about regional
regulations.
learn about import
restrictions.
Section 4-2
28
Global E-Commerce
Removing Geographic
Barriers
One of the main
challenges facing
international e-commerce
is online dispute
resolution (ODR).
Section 4-2
online dispute
resolution (ODR)
the process of resolving
cross-border disputes in
the electronic-business
environment
29
Global E-Commerce
Section 4-2
Review
1.
How do the import and export of goods differ?
2.
What is the World Trade Organization, and what is
its main goal?
3.
What potential barriers exist for developing
countries’ entry into e-commerce?
4.
What is a protectionist? How might a protectionist
in the U.S. feel about importing lumber from
Canada and why?
Section 4-2
30
Global E-Commerce
31
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