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The role of e-commerce within the global economy

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  1. Introduction.
  2. the 'new' economy and globalization.
  3. The Internet and customers.
  4. The use of the Internet for commercial purposes.
  5. Conclusion.
  6. References.

Nowadays, the business world is driven by two economic trends: globalization and the adoption of information technologies. Those changes are entirely linked. ?Technology is both driven by and a driver of globalization, as both forces continually reinforce one another? (Bradley et al., 1993). Globalization gives opportunities to firms to extend their operations but challenges them to be more efficient. Confronted with competitive forces, global companies use new technologies to extend their business internationally. The implementation of such technologies within the companies' strategies such as the use of the Internet reduces time and space, making it cheaper and easier for them to market products and services internationally. To introduce the notion of ecommerce; it ?consists of the buying, selling, marketing, and servicing of products or services over computer networks. The information technology industry might see it as an electronic business application aimed at commercial transactions?.

[...] Moreover, companies using Ecommerce for global purposes have to be aware of cultural differences within each country in order to adapt its business strategy to the customers' habits. References Anthony Mitchell, E-Commerce Times, 10/25/05, Customer Relations Managers Face Job Transformations, http://www.ecommercetimes.com/story/46924.html, Date accessed 9/02/06 Bin, Wiu, Shu-Jen Chen, & Shao Qin Sun, ?Cultural differences in commerce: A comparison between the U.S. and China.? Journal of Global Information Management, April-June 2000, Vol.11, Iss http://home.utm.utoronto.ca/~seok-tae/main.htm, Date accessed 9/02/06 Kenneth L. Kraemer, Jennifer Gibbs and Jason Dedrick, Center for Research on Information Technology and Organizations, University of California, Irvine, December Impacts of Globalization on Commerce Adoption and Firm Performance: A Cross-Country Investigation, www.crito.uci.edu/publications/pdf/gec/JIBS.pdf Kenneth L. [...]


[...] So it is interesting to study how the various countries of the global economy differ in the way they adopt and implement Ecommerce. To begin with the US, Ecommerce is a common thing. It is part of the commerce in general and permits companies to extend their operations. The vague of the Internet in that country is a quite phenomenon. Indeed, as we said previously, US companies have been the leaders. European countries share the common characteristic that the process of adopting the Internet has been relatively slow. [...]

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