Global E-Commerce

Prepared by

Karin Bean

Global E-Commerce

Final Research Paper CSI 274

The impact of Global E-Commerce in the Business World -Benefits and Challenges

Prepared for

Robert Quentin

November 21, 2004

TABLE OF CONTENTS

Introduction 2

Benefits of Global Commerce 2-3

Examples of Global Success 3

Successful Collaboration in B2B Exchanges 4

Some examples of successful B2B 4-5

Infrastructure 6

Challenges of Global E-Commerce 6-7

Cultural preferences 7

Localization 8

Legal issues 8-9

Bandwidth 9-10

Consumer protection 11

Payments 11

Taxation 11

Laws 11-12

Economical Impact 12-13

Digital Divide 13

Definitions 13

Reference 14

ii

INTRODUCTION

Global E-commerce has been around for 25 years. It was used mostly for stock trading and financial transactions using EDI and EFT Systems and was limited mostly to large corporation due to the high costs of data transmission. The use of the internet and extranet have changed the way global business is performed and has expanded the global market significantly.

Moos to Trade

An IBM 5160 (PC XT).

IBM Portable PC

The Internet provides a more inexpensive and flexible infrastructure and therefore enables more companies to engage in global e-commerce. The use of the internet breaks down international borders and creates endless opportunities for companies to expand their business worldwide. Besides the benefits for businesses, there are challenges as well. Those range from language barriers to different currencies, tax laws, and cultural differences in business ethics, to different competition laws. Furthermore technical challenges such as implementing effective network connections, interoperational platforms, and security systems are still causing barriers for global e-commerce.

BENEFITS OF GLOBAL COMMERCE

The opportunity to engage in global e-commerce provides many companies with great opportunities to expand their market. B2B opportunities enable businesses to join ventures, collaborate effectively and save costs by reengineering administration and business processes. Businesses are able to join global trading e-market spaces, and

2

exchanges in their prospective industry,