Effects of e commerce to globalization

1. By: Jay Francis P. Yra

2. What is 'Globalization'
• Globalization implies the opening of local and
nationalistic perspectives to a broader outlook of an
interconnected and interdependent world with free
transfer of capital, goods, and services across national
frontiers.
• Globalization is the tendency of investment funds and
businesses to move beyond domestic and national
markets to other markets around the globe, thereby
increasing the interconnection of the world. Globalization
has had the effect of markedly increasing international
trade and cultural exchange

3. Characteristics
 Opportunity
 Interdependence
 Liberalisation
 Technology in Service of Mankind
 Free Trade
 Linked Politics with Economics
 Raised Standards of Living
 Connectivity
 Borderless Globe

4. Importance
Globalization allows countries to benefit from
economic synergy and collaborate in handling political,
social and economic challenges. A broader marketplace
allows producers to fetch more for their goods, and a global
supply network gives public and private entities more
buying options. Globalization also increases opportunities
for companies to expand operations in foreign markets.

5. Globalization in Economics
• Multinational corporations operate on a global scale,
with satellite offices and branches in numerous
locations.
• Outsourcing can add to the economic development of
a struggling country, bringing much needed jobs.

6. Globalization in the Blending of
Cultures
• Christian missionaries from Europe added to the
globalization of Christianity.
• Greek culture spread across Africa,
Europe and Asia through Alexander
the Great.

7. Globalization in Technology
• Internet is a major contributor to globalization, not
only technologically but in other areas as well, like in
cultural exchanges of the arts.
• Cells phones connect people all over the world like
never before. Around 60 percent of all people in the
world use cell phones.

8. Impact of globalization on world
economy
 More efficient markets Efficient markets should be what
every economy strives for. Essentially, the sign of an
efficient market is where there is an equilibrium between
what buyers are willing to pay for a good or service and
what sellers are willing to sell for a good or service.
 Increased competition Anytime that you have multiple
producers competing for a hold of the economy, that’s a
good sign for consumers, as the quality of goods and
services often goes up as a result.
 Stabilized security When your economy depends largely
on another country’s economy, it is hard to imagine either
one of the countries attacking the other. In a weird sort of
way, globalization helped heighten world security.

9. What is E-commerce
• E-commerce refers to the purchase and sale of goods
and/or services via electronic channels such as the
internet.
• Electronic commerce (ecommerce) is a type of
business model, or segment of a larger business
model, that enables a firm or individual to conduct
business over an electronic network, typically the
internet.

10. Categories of e-commerce
• As with traditional commerce, there are four
principal categories of e-commerce: B2B, B2C,
C2B and C2C.

11. • B2B (business to business) – This involves companies
doing business with each other. One example is
manufacturers selling to distributors and wholesalers
selling to retailers.
• B2C (business to consumer) – B2C consists of businesses
selling to the public through shopping cart software,
without needing any human interaction. This is what
most people think of when they hear "e-commerce." An
example of this is Amazon.

12. • C2B (consumer to business) – In C2B e-commerce,
consumers post a project with a set budget online, and
companies bid on the project. The consumer reviews the
bids and selects the company. Elance is an example of
this.
• C2C (consumer to consumer) – This takes place within
online classified ads, forums or marketplaces where
individuals can buy and sell their goods. Examples of this
are Craigslist, eBay and Etsy.

13. The e-commerce opportunity

16. Technology and e-commerce trends
 Big data
 Cloud computing
 Mobile commerce in Europe
 Internet of things
 Social networks
 Uberization
 Omnichannel supply chain
 Virtual reality (virtual shopping)

17. Big data

18. Cloud computing

19. Mobile commerce

20. Internet of things

21. Social networks

22. Uberization

23. Omnichannel supply chain

24. Virtual reality (virtual shopping)

25. Effects of ecommerce on
globalization
• Globalization supported the global economy by the decline in administrative
barriers to trade, sharp falls in the costs of transportation and communication,
fragmentation of production processes and the development in information and
communication technology. Telecommunications and transport links flourished by
the globalization created a new way of accessing to the new markets through e-
commerce.
• In this context the way globalization affect e-commerce and the opposite situation
co me into agenda. In a broadsense e-commerce concept, affecting employment
patterns, productivity and industry structure, is much broader than it's perceived
and relationship between globalization and e-commerce is complicated.
• Telecommunications and technological substructure of the countries are directly
benefited from the globalization process.
• In this regards developed countries which are into globalization process way
before have solid infrastructure of telecommunications and technology. As a result
for these countries e-commerce is more effective on globalization than the
opposite case.

26. Digital divide
Developing country
• Social equality. ICTs have the potential to dispel
disadvantages that may be associated with cultural
barriers. For example, ICTs may be used to improve
gender equality in education.
• Social mobility which refers to the upward movement in
status of individuals or groups based on wealth,
occupation, education, or some other social variable in a
society where one status is not dictated or decreed by
birth of origin. Advancements in ICTs are capable of
bestowing advantages in education, job-training, health-
care as well as social networking and quality of life that
they could make a difference between upward social
mobility and a declining standard of living.

27. • Economic equality. Bridging the digital divide has
implications in terms of fostering economic equality,
educational potential, and earning potential.
• e-democracy. ICTs can be a powerful tool for increasing
transparency and facilitating information and
communication processes among stakeholders.
• Economic Growth and Innovations. Long-term economic
growth has often been associated With technological
progress.

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