Globalization widens the access to a diverse variety of foreign commodities for consumption of the customers

1. Effects of
Globalization to
E-Commerce
HONEY GIRL ANINAG-AVO

2. What is Globalization?
 The worldwide movement toward economic, financial, trade, and
communications integration.
 It 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.
 However, it does not include unhindered movement of labor and, as
suggested by some economists, may hurt smaller or fragile economies if
applied indiscriminately.

3. Pros and Cons of Globalization
PROS CONS
Free trade is supposed to reduce barriers such as
tariffs, value added taxes, subsidies, and other
barriers between nations.
The general complaint about globalization is that it
has made the rich richer while making the non-rich
poorer.
Competition between countries is supposed to
drive prices down.
The biggest problem for developed countries is
that jobs are lost and transferred to lower cost
countries.
Gradually there is a world power that is being
created instead of compartmentalized power
sectors.
Large multi-national corporations have the ability
to exploit tax havens in other countries to avoid
paying taxes.
Labor can move from country to country to
market their skills.
The anti-globalists also claim that globalization is
not working for the majority of the world.
Sharing technology with developing nations will
help them progress.
Globalization has led to exploitation of labor.

4. Areas Influenced by Globalization

5. Benefits of Globalization
 Foreign Direct Investment. Foreign direct investment (“FDI”) tends to
increase at a much greater rate that the growth in world trade, helping
boost technology transfer, industrial restructuring, and the growth of
global companies.
 Technological Innovation. Increased competition from globalization
helps stimulate new technology development, particularly with the growth
in FDI, which helps improve economic output by making processes more
efficient.
 Economies of Scale. Globalization enables large companies to realize
economies of scale that reduce costs and prices, which in turn supports
further economic growth, although this can hurt many small
businesses attempting to compete domestically.

6. Risks of Globalization
 Interdependence. Globalization leads to interdependence between
nations, which could cause regional or global instabilities, if local economic
fluctuations end up impacting a large number of countries relying on
them.
 National Sovereignty. Some see the rise of nation states, multinational or
global firms and other international organizations as a threat to
sovereignty.
 Equity Distribution. The benefits of globalization can be unfairly skewed
towards rich nations or individuals, creating greater inequalities and
leading to potential conflicts both nationally and internationally as a result.

7. The Bottom Line
 Globalization has impacted nearly every aspect of
modern life and continues to be a growing force in
the global economy. While there are a few drawbacks
to globalization, most economists agree that it's a
force that's both unstoppable and net beneficial to
the world economy.

8. What is E-Commerce?
 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.
 It can be thought of as a more advanced form of mail-
order purchasing through a catalog. Almost any product
or service can be offered via ecommerce, from books and
music to financial services and plane tickets.

9. Features
 Non-Cash Payment: E-Commerce enables the use of credit cards, debit
cards, smart cards, electronic fund transfer via bank’s website, and other
modes of electronics payment.
 24x7 Service availability: E-commerce automates the business of
enterprises and the way they provide services to their customers. It is
available anytime, anywhere.
 Advertising/Marketing: E-commerce increases the reach of advertising of
products and services of businesses. It helps in better marketing
management of products/services.

10. Features
 Improved Sales: Using e-commerce, orders for the products can be
generated anytime, anywhere without any human intervention. It gives a
big boost to existing sales volumes.
 Support: E-commerce provides various ways to provide pre-sales and
post-sales assistance to provide better services to customers.
 Inventory Management: E-commerce automates inventory management.
Reports get generated instantly when required. Product inventory
management becomes very efficient and easy to maintain.
 Communication improvement: E-commerce provides ways for faster,
efficient, reliable communication with customers and partners.

11. Traditional Commerce vs. E-Commerce

12. Advantages and Disadvantages of E-Commerce
Advantages Disadvantages
Convenience - Ecommerce can take place 24
hours a day, seven days a week.
Limited customer service - If you want to buy a
computer and you’re shopping online, there is no
employee you can talk to about which computer
would best meet your needs.
Selection - Many stores offer a wider array of
products online than they do in their brick-and-
mortar counterparts.
No instant gratification - When you buy
something online, you have to wait for it to be
shipped to your home or office.
No ability to touch and see a product - Online
images don’t always tell the whole story about an
item. Ecommerce transactions can be dissatisfying
when the product the consumer receives is
different than expected.

13. E-Commerce Applications
 Email
 Online Catalogs
 Shopping Carts
 EDI
 File Transfer Protocol
 Web Services

14. Effects of Globalization to E-Commerce
 Economic and Trade Processes Field
 Education and Health Systems
 Culture Effects

15. Synthesis (Insights)
 The effects of Globalization exert intense influences on the financial
conditions as well as the industrial sector of a particular nation.
 Globalization widens the access to a diverse variety of foreign
commodities for consumption of the customers,
 Technology is one of the leading factors in the evolution of globalization.
Information technology is helping further develop globalization and
innovations changes every aspect of the business industry because you
can reach the most remote areas of the world and giving opportunities to
small and big business globally.
 Many Health system is being developed that can do better than the usual
practices in the medical field. Through this medical innovations doctors
and experts can easily find the cure to illness.
 Through globalization we can study and learn the different culture, beliefs
of the different country .

16. References
 http://www.businessdictionary.com/definition/globalization.html
 https://www.forbes.com/sites/mikecollins/2015/05/06/the-pros-and-cons-
of-globalization/#6774e663ccce
 https://laboureconomics.wordpress.com/2012/05/14/causes-and-effects-
of-globalization-6/
 http://www.investopedia.com/terms/e/ecommerce.asp
 https://www.thebalance.com/what-is-protectionism-1978989