3. Global E-Commerce
10
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 10-1
3
5. Global E-Commerce
10
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 10-1
5
6. Global E-Commerce
10
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 10-1
globalization
enhancing connectivity
and interdependence
among the world’s
markets and businesses
6
7. Global E-Commerce
10
Challenges of Global
E-Commerce
As you think about
expanding your business
into a new country, you’ll
also want to consider
culture.
Section 10-1
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
8. Global E-Commerce
10
Challenges of Global
E-Commerce
To prepare a Web site that does business
globally, be aware of the following issues:
Content
Section 10-1
Design
Navigation
8
9. Global E-Commerce
10
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 10-1
9
10. Global E-Commerce
10
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 10-1
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
11. Global E-Commerce
10
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 10-1
Web globalists
consultants who advise
companies on how to
design their Web sites
and market and sell their
products effectively to
international audiences
11
12. Global E-Commerce
10
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 10-1
12
13. Global E-Commerce
10
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 10-1
13
14. Global E-Commerce
10
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 10-1
14
15. Global E-Commerce
10
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 10-1
15
16. Global E-Commerce
10
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 10-2
16
19. 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 10-2
19
20. 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 10-2
20
21. Global E-Commerce
10
Removing Geographic
Barriers
As economies increasingly engage in
international e-commerce, governments and
individuals are examining their policies and
positions on international trade.
Section 10-2
21
23. Global E-Commerce
10
Removing Geographic
Barriers
To provide a competitive
advantage to domestic
producers, many
governments impose
tariffs on imports.
Section 10-2
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
24. Global E-Commerce
10
Removing Geographic
Barriers
To provide a competitive
advantage to domestic
producers, many
governments set quotas
on imports.
Section 10-2
quotas prescribed
quantities or maximum
amounts of imports
allowed into a country
24
25. Global E-Commerce
10
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 10-2
export product sold
in a country other than
the one in which it was
produced
25
26. Global E-Commerce
10
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 10-2
26
27. Global E-Commerce
10
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 10-2
27
29. Global E-Commerce
10
Removing Geographic
Barriers
One of the main
challenges facing
international e-commerce
is online dispute
resolution (ODR).
Section 10-2
online dispute
resolution (ODR)
the process of resolving
cross-border disputes in
the electronic-business
environment
29
30. Global E-Commerce
10
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 10-2
30
Section 4.1 Review
Culture describes a way of life that includes behaviors, beliefs, values, and generally accepted symbols for a group of people. As cultures differ greatly around the world, businesses must carefully consider the standards of each market before they attempt to sell their products and services worldwide. Sensitivity to local cultures ensures that a Web site’s wording or graphics do not offend potential customers.
Translation is accomplished using either a translating machine or person who is trained in this skill. Machine translation is far less accurate and often fails to take slang or regional usage into account. When a business is conducting Web site translation, it must ensure that product descriptions are conveyed accurately, marketing lingo and word choices are appropriate, and the use of humor is effective and not offensive.
Section 4-1 Review
They might also use servers, software applications, and character sets based in that language and that have to be translated.
Many countries and regions have specific business rules and regulations for those doing business locally. Before a company embarks on trying to sell its products or services, it should be aware of tax laws as well as rules and regulations dictating the types of products that can be sold and packaging that can be used.
Section 4-2 Review
Importing is the purchase or trade of goods by one country that are produced by another country. Exporting is the sale or trade of goods produced within a country to foreign nations.
The World Trade Organization (WTO) is designed to monitor trade and help resolve disputes among its member countries. The main goal of the WTO is to promote global free trade.
Limited communication infrastructures, inadequate funding, and unskilled workforces are the most common barriers to e-commerce development in developing countries.
A protectionist favors government protection for domestic producers. A protectionist in the U.S. would be against importing lumber from Canada because it could take business away from U.S. lumber companies.