What Impact Does Globalization Have on E-Commerce

What impact does globalization have on e-commerce

Introduction

Globalization is the international integration of markets for goods, services, and capital. “In today's global economy, more businesses sell products online, in more markets and in more languages, than ever before”. (Rosenlund, 2005) Globalization is a powerful real aspect of the new world system, and it represents one of the most influential forces in determining the future course of the planet. Greider (1997) It has many dimensions: economic, political, social, cultural, environmental, security, and others. Products, services, and transaction processes have been reengineered to adjust to changing business environments. In spite of trade policies in the political arena both in United States and abroad, globalization is bound to succeed in the world due to the enormous economic benefits that can be accrued by it. “While the perspective of “Cold War” was division, that of Globalization is “Integration”. The Cold War was a world of “friends” and “enemies”. But the Globalization world tends to turn both friends and enemies to “competitors”. (Friedman, 1999)

E-Commerce is a business strategy that uses electronic technologies to capture, store, manipulate, analyze and visualize the diverse sets of trade-referenced data required for electronic communications among enterprises, customers, suppliers, business enterprises, government organizations and financial institutions. With the introduction of e-commerce, many in the world are able to compete in global markets regardless of language, cultural barriers, physical distance and national boundaries. Providing a quick and convenient way of exchanging goods and services both regionally and globally, e-commerce has boomed. This paper will discuss the impact and benefits globalization and e-commerce has on the internet.

Impact of globalization

“Globalization is not just a phenomenon or a passing trend but is the integration of capital, technology, and information across national borders, in a way that is creating a single global market and a global village”. (Friedman, 1999) It is an unstoppable business trend among America's leading corporations. According to Rosenlund, globalizing e-business means expanding your reach into current markets, or opening up new ones, and appealing to both international audiences and domestic multicultural groups. Globalization ensures that customers around the world communicate, collaborate and transact online regardless of location, language, culture or business practices. The increase in globalization will depend upon the rules and regulations that are developed by the nations of the world as well as the international organizations. Globalization has impacted growth in international trade in goods and services, exchanges of currencies, in