![References
• The Balance Small Business. (2018). Why E-commerce Is Taking the Retail World by
Storm. [online] Available at: https://www.thebalancesmb.com/advantages-of-
ecommerce-1141610 [Accessed 30 May 2018].
• Ecommerce Guide. (2018). What is ecommerce? Ecommerce explained with
examples.. [online] Available at: https://ecommerceguide.com/guides/what-is-
ecommerce/ [Accessed 30 May 2018].
• The Balance Small Business. (2018). Why E-commerce Is Taking the Retail World by
Storm. [online] Available at: https://www.thebalancesmb.com/advantages-of-
ecommerce-1141610 [Accessed 30 May 2018].
• Rodrik, Dani, Has Globalization Gone Too Far?, Institute For International
Economics, Washington DC, 1997.
• Friedman, Thomas., The Lexus and the Olive Tree, Farrar Strua Giroux, 1999](https://image.slidesharecdn.com/effectofe-commercetoglobalization-180531081036/85/Effects-of-E-commerce-to-Globalization-15-320.jpg)
Effects of E-commerce to Globalization
- 1. The Effect of E-commerce to Globalization and vice versa Michael Bryan P. Lumaban DIT Student Saint Paul University Philippines – Tuguegarao City
- 2. What is E-Commerce? • Electronic commerce or ecommerce is a term for any type of business, or commercial transaction, that involves the transfer of information across the Internet. • Ecommerce allows consumers to electronically exchange goods and services with no barriers of time or distance. • Example – business-to-consumer e-commerce would be an online store such as Amazon.com. Anyone with Internet access and a credit card can access the website, browse products and services, make a selection, and purchase a product by credit card payment with the assurance of delivery in the mail.
- 3. Advantages of E-Commerce • Overcome Geographical Limitations • Gain New Customers With Search Engine Visibility • Lower Costs • Locate the Product Quicker • Eliminate Travel Time and Cost • Provide Comparison Shopping • Enable Deals, Bargains, Coupons, and Group Buying • Provide Abundant Information • Create Targeted Communication • Remain Open All the Time • Create Markets for Niche Products
- 4. E-commerce according to parties involved • Business to consumer (B2C) – Transactions happen between businesses and consumers. In B2C ecommerce, businesses are the ones selling products or services to end-users – Online retail typically works on a B2C model. Retailers with online stores such as Walmart, Macy’s, and IKEA are all examples of businesses that engage in B2C ecommerce. • Business to business (B2B) – As its name states, B2B ecommerce pertains to transactions conducted between two businesses. Any company whose customers are other businesses operate on a B2B model. – Examples include Xero, an online accounting software for small businesses, ADP, a payroll processing company, and Square, a payments solution for SMBs.
- 5. E-commerce according to parties involved (Cont.) • Consumer to business (C2B) – Consumer to business ecommerce happens when a consumer sells or contributes monetary value to a business. Many crowdsourcing campaigns fall under C2B ecommerce. – Soma, a business that sells eco-friendly water filters is one example of a company that engaged in B2C ecommerce. Back in 2012, Soma launched a Kickstarter campaign to fund the manufacturing of their product. The project was successful, and Soma went on to raise $147,444. • Consumer to consumer (C2C) – As you might have guessed, C2C ecommerce happens when something is bought and sold between two consumers. C2C commonly takes place on online marketplaces such as eBay, in which one individual sells a product or service to another.
- 6. E-commerce according to parties involved (Cont.) • Government to business (G2B) – G2C transactions take place when a company pays for government goods, services, or fees online. Examples could be a business paying for taxes using the Internet. • Business to government (B2G) – When a government entity uses the Internet to purchases goods or services from a business, the transaction may fall under B2G ecommerce. Let’s say a city or town hires a web design firm to update its website. This type of deal may be considered a form of B2G. • Consumer to government (G2C) – Consumers can also engage in B2C ecommerce. People paying for traffic tickets or paying for their car registration renewals online may fall under this category.
- 7. What is Globalization? • In economic terms it is the international integration of markets for goods, services, and capital; • is not just a phenomenon or a passing trend but is the integration of capital, technology, and information across national borders, in a way that is creating a single global market and a global village.
- 8. Positive and Negative effect of Globalization Positive • It creates greater opportunities for forms in less industrialized countries to tap into more and larger markets around the world. • This can lead to more access to capital flows, technology, human capital, cheaper imports and large larger export markets. • It allows businesses in less industrialized countries to become part of international production networks and supply chains that are the main conduits of trade. Negative • The growth of international trade is exacerbating income inequalities, both between and within industrialized and less nations. • Global commerce is increasingly dominated by transnational corporations which seek to maximize profits without regard for the development needs of individual countries or the local populations. • Competitions among developing countries to attract foreign investment leads to a “race to the bottom” in which countries dangerously lower environmental standards.
- 9. Effect of E-commerce to Globalization – Multinational corporations operate on a global scale, with satellite offices and branches in numerous locations. – Outsourcing can ass to the economic development of a struggling country, bringing much needed jobs. – Some automobiles use parts from other countries, as in a car being assembled in the US with the parts coming from Japan, Korea, or Germany.
- 10. Effect of E-commerce to Globalization – The Internet is a major contributor to globalization, not only technologically but in other areas as well, like cultural exchanges of the arts. – Cell phones connect people all over the world like never before. Around 60% of all people in the world use cell phones.
- 14. Insights • Information technology has greater impact with globalization. The birth of high speed transmission line, innovative development of technology in both hardware and software is one of the key factors interplay with information technology and globalization. • Information and Communication Technology (ICT) reformed the nature of business operation and enhance competitive business environment. This resulted in evolution and innovations of the many products, services and business process. • In terms of products, e-commerce provides a new way of advertising products through the use of internet advertisements. • placing “E” in the front of any process is a magic prescription for never ending story of success and rapid return for enterprises. Therefore, businesses that have adopted with the changing business environments made it up to the top but those businesses who were left behind with the competition did not survive.
- 15. References • The Balance Small Business. (2018). Why E-commerce Is Taking the Retail World by Storm. [online] Available at: https://www.thebalancesmb.com/advantages-of- ecommerce-1141610 [Accessed 30 May 2018]. • Ecommerce Guide. (2018). What is ecommerce? Ecommerce explained with examples.. [online] Available at: https://ecommerceguide.com/guides/what-is- ecommerce/ [Accessed 30 May 2018]. • The Balance Small Business. (2018). Why E-commerce Is Taking the Retail World by Storm. [online] Available at: https://www.thebalancesmb.com/advantages-of- ecommerce-1141610 [Accessed 30 May 2018]. • Rodrik, Dani, Has Globalization Gone Too Far?, Institute For International Economics, Washington DC, 1997. • Friedman, Thomas., The Lexus and the Olive Tree, Farrar Strua Giroux, 1999