Effects of globalization to e-Commerce

1. EFFECTSof
GLOBALIZATIONtoe-
COMMERCE
(ViceVersa)
Rosalinda N.
Espaldon

2. 1. What is Globalization?
1.1 Types of Globalization
1.2 Advantages and Disadvantages of
Globalization
2. What is E-Commerce?
2.1 Types of E-Commerce
2.2 Advantages and Disadvantages of E-
Commerce
3. Effects of Globalization on E-Commerce
Table of Contents

3. Whatisglobalization?
 It is a process by which businesses or other
organizations develop international influence or
start operating on an international scale.
 It is the process of interaction and integration
among the people, companies, and governments
of different nations, a process driven by internal
trade and investment and aided by information
technology.
 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.

4. Typesofglobalization
• POLITICAL Globalization
- It refers to the amount of political co-operation that
exists between different countries.
- This ties in with the belief that “umbrella” global
organizations are better placed than individual states
to prevent conflict. The League of Nations established
after WWW1 was certainly one of the pioneers in this.
Since then, global organizations such as World Trade
Organization (WTO), United Nations (UN), and more
regional organizations such as the EU have helped to
increase the degree of political globalization

5. Typesofglobalization
• SOCIAL Globalization
- It refers to the sharing of ideas and information
between and through different countries.
- In today’s world, the internet and social media is at
the heart of this. Good example of this social
globalization could include internationally popular
films, books, and TV series. The Harry Potter/Twilight
films and books have been successful all over the
world, making the characters features globally
recognizable. However, this cultural flow tends to flow
from the centre (i.e. from developed countries such as
the USA to the less developed countries. It is often
criticized for eroding cultural differences.

6. Typesofglobalization
• ECONOMIC Globalization
- It refers to the interconnectedness of economies
through trade and the exchange of resources.
- Effectively, therefore, the national economy
really operates in isolation, which means national
economies influence each other. This is clearly
evidenced by global recession from 2007
onwards. It also means that there is a two-way
structure for technologies and resources. For
example, countries like the USA will see their
technologies to countries, which lack these, and
natural resources from developing countries are
sold to developed countries that need them.

7. Advantagesanddisadvantages
ofglobalization

8. Advantagesofglobalization
1. Increase in Employment opportunities
2. Education
3. Increase in free trade
4. Faster flow of information
5. Increase of quality of goods and services
6. Decrease of prices of goods and services
7. Reduction in cultural barriers

9. Disadvantagesofglobalization
1. Environmental degradation
2. Unfair working conditions
3. Fall in employment growth rate
4. Growing disparity between the rich and the
poor
5. Small scale industries face extinction
6. Rapid spread of deadly diseases

10. Whatise-commerce?
 It is a term for any type of businesses, or
commercial transaction that involves the
transfer of information across the internet.
 It covers a range of different types of
businesses, from consumer-based retail
sites, through auctions and music sites, to
business exchanges trading goods and
services between corporations. It is
currently one of the most important aspects
of the internet to emerge.

11. Typesofe-commerce
• Business-to-Business (B2B)
- It consists of all the electronic transactions and dealing
related to the goods and services. These basically are
conducted between companies and include conventional
wholesaler and produce dealing with retailers.
• Business-to-Consumer (B2C)
- It is related to the transactions and relationship between
businesses and the end customers. This is mainly to do
with the retail e-Commerce trade that takes place online.
With the inception of the internet, B2C e-Commerce has
evolved to a great extent. Today, we find score on electronic
shopping sites and virtual stores on the web, that sell
myriad products, ranging from computers, fashion items
and even necessities.

12. Typesofe-commerce
• Consumer-to-Consumer (C2C)
- This consists of electronic transactions of products and
service between two customers. These are mainly
conducted through a third party that provides an online
platform for these transactions sites, where old items are
bought and sold, are examples of C2C e-Commerce.
• Consumer-to-Business (C2B)
- this is where complete reversal of the selling and buying
process takes place. This is very relevant for crowd
sourcing projects. In this case, individuals make their items
or services and sell them to companies. Some examples are
proposals for company sites or logo, royalty for
photographs, design elements and so on.

13. Typesofe-commerce
• Business-to-Administration (B2A)
- In this kind of e-Commerce transaction, these are dealings
between companies and public administrations. It
encompasses different services, such as social security,
fiscal measures, legal documents, employment and so on.
• Consumer-to-Administration (C2A)
- In this e-Commerce model, electronic transaction are
carried between individuals and public administrations.
Some examples are distance learning, information sharing,
electronic tax filing, and so on.
The main objectives of both the B2A and C2A types of e-
Commerce is to increase flexibility, efficiency, and
transparency in public administration.

14. Advantagesanddisadvantages
of
e-commerce

15. Advantagesofe-commerce
1. Faster buying/selling procedures, as well as easy to
find products
2. Buying/selling 24/7
3. More reach to customers, there is no theoretical
geographic limitations
4. Low operational costs and better quality of service
5. No need of physical company set-ups
6. Easy to start and manages a business
7. Customers can easily select products from different
providers without moving around physically.

16. Disadvantagesofe-commerce
1. Any one, good or bad, can easily start a business. And
there are many bad sites which eats up customer’s
money.
2. There is no guarantee of product quality.
3. Mechanical failures can cause unpredictable effects
on the total processes.
4. As there is minimum chance of direct customer to
company transaction, customer’s loyalty is always on
a check.
5. There are many hackers who look for opportunities,
and thus e-Commerce sites, services, payment
getaways, all are always prone to attack.

17. Effectsofglobalizationto
e-commerce

18. Riseincompetition
This is the single biggest benefit of
globalisation all around the world.With enhanced
competition from foreign brands and companies,
industries of every nation are compelled to
improve their standards and quality and
customer satisfaction services.
This benefits the customers and the
economy as a whole, and raises the standard of
living of everybody. This could be viewed as a
negative impact by many, but no-one can deny
the impact it has had.

19. Riseintechnologyandknowhow
The rise in knowledge levels of countries as
newer cultures and technologies are opened to a
particular area are clear. Their knowledge base also
grows and expands simultaneously.
As a result, they are better able to handle their
primary and secondary industries, and this ultimately
affects their tertiary sectors in a positive manner as
well.

20. Riseinopportunities
With a larger number of industries and resources
available, the opportunities for people grow exponentially
too. There are many more jobs available to people, and
more and more people are also exposed to the lucrative
benefits of moving abroad. This increases immigration
rates as well, thus giving people the chance to grow
economically and socially.
Whatever your viewpoint of immigration, there is no
doubt it has opened up masses of opportunities to millions
of people who would otherwise have not seen any
improvements.

21. Riseininvestmentlevels
The rise in foreign investment in countries helps
industries and native cities grow at a rapid pace, and this is
something that every nation should be open to since it is a
highly beneficial venture for them. There is so much that
they can gain in the process as well. Every country now
imports more than ever before, so that global growth has
shared resources and abilities in a way that we could never
have imagined even 50 years ago
Whatever your viewpoints on globalization, you
cannot hold it back and it is offering opportunities that we
have never seen before. Only by tapping into the benefits
that exist within the global network will nations, industries,
companies and individuals learn to grow and nurture each
other to everyone’s benefit.

22. references
 https://www.tutor2u.net.politics/reference/types-of-
globalization
https://www.quora.com/What-are-the-advantages-and-
disadvantages-of-globalization
https://www.networksolutions.com/education/what-is-
ecommerce/
https://www.kartrocket.com
https://esalestrack.com/blog/2008/09/advantages-and-
disadvantages-of.html
https://www.mtdtraining.com/blog/the-effects-of-globalisation-
on-business.htm