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Effects of Globalization to E-Commerce
- 1. EFFECTS OF GLOBALIZATION TO E-COMMERCE By: Rubelyn C. Padilla
- 2. LEARNING OBJECTIVES: 1. Define Globalization 2. Explain the positive and negative effects of globalization. 3. Discuss the factors that contributes to globalization 4. Define E-Commerce 5. Discuss the different types of ecommerce 6. Explain the process of e-commerce 7. Understand the effects of Globalization to E- Commerce
- 3. Topics Covered: 1. Globalization • Definition and its Importance • Examples of Globalization • Effects of Globalization. Positive and Negative Effects • Factors that contributes Globalization 2. E-Commerce • Definition and Types of E-commerce • Process of E-Commerce 3. Effects of Globalization to E-Commerce 4. Conclusion
- 4. Globalization Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology.
- 5. Examples of Globalization Anything that has been made in other countries and was imported somewhere else.
- 6. Positive Effects of Globalization 1. Bigger markets 2. Better and varied goods 3. Better investment opportunities
- 7. Globalization leads to: 1. Unemployment 2. Financial Insecurity 3. Unequal opportunities
- 10. Types of E-Commerce Government G2G e.G Central & State G2B E-Tenders G2C Information to citizens, online forms Business B2G e.G procurement B2B Convisint.com EDI,EFT B2C Flipkart.com Rediff.com Consumer C2G Online filing of tax returns C2B Job Portals C2C Facebook.com Ebay.in,flikr.com Government Business Consumer
- 11. The process of E- commerce Order placed by user Shipping cart Customer’s credit card charged Order completed E-mail sent to customer & merchant Sent to warehouse for fulfillmentShipping center picks up shipment Shipment sent to customer
- 12. Effects of Globalization to E-commerce Life’s standard increase: • Education • Social • Industrial • Financial • Economic • Political • Informational • Competition • Ecological • Cultural • Technical • Legal/Ethical
- 13. Conclusion Globalization has different effects on business to business and business to customer e- commerce, however, highly global firms are more likely to do business to business but less likely to do business to customer. This would imply that e-commerce will reinforce existing international competitive advantages rather than leveling the playing field and enabling local firm to compete with global firms in international markets.
Editor's Notes
- Globalization in not new, people and corporations have invested in enterprises in other countries. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world. The process of globalization creates new challenges and opportunities for firms. The opportunities include access to new markets and participate in global production networks that are dominant in industries.
- Globalization involves us all, it is a part of our everyday life. For example, wearing clothes made in USA, using shoes made in Germany, buying battery of cellphone made in Finland, and many other products that was imported and exported. We also engage ourselves in globalization by using social media applications like youtube, fabook, twitter, etc..
- Globalization has many positive, innovative and dynamic aspects, all related to the increased market access, increase access to capital and increased access to technology and information which will lead to bigger markets, better and varied goods and better investment opportunities
- Globalization has affected unemployment because companies are now using new technologies to extend their products into the international marketplace, that is, people have been replaced by technology that causes unemployment. Since, it is very easy to order products online, many would suffer for financial insecurity. Being financially insecure makes you feel uncomfortable and always worrying about your liabilities. Globalization increases inequality, both within and across countries. With the increased in global technology, developed countries dominated that those poor countries..
- Technological Change – More powerful computers and internet have allowed the easy transfer of data, which plays an important role in speeding up the globalization. The reduction of transportation cost – Air transportation and telephone costs have improved the developing environment for globalization. Consumer taste change – More and more consumers today are willing to buy foreign or new products for fashion or new styles. The growth of new markets – The growth of new markets has increase the trend in globalization Competition – More and more fierce competition has forced business to seek opportunities in the world market. To compete successfully, business today must develop a global strategy.
- Both small and big business today are using e-commerce website to gain larger profits. An e-commerce site is the best platform to bring retailers, manufactures and clients at the same place. Such sites increase the shopping experience of customer and offers them comparison to other sites.
- Source: OECD
- The process of globalization is a powerful way to adopt information technology and e-commerce. The manifestation of globalization may increase private financial investment, trade activity and tourism while increased connectivity through internet connections, e-commerce is reshaping business in a globally oriented marketplace. E-commerce is considered to be he sales aspect of business. It consists of the exchange of data to facilitate the financing and payments. E-commerce may increase education social, industrial, financial and many more. Increasing competition- more and more foreign businesses have entered local markets so the competition has been intensified. 2. Meeting consumer needs in more effective way – Consumers have choices for prducts and servces. They can buy the best products for the best prices. 3.. Being able to enjoy economies of scale – Businesses can enjoy as large scale of production in the whole world. Their production costs can be reduced. Affecting the choice of location – Business can choose locat