Effects of Globalization to E-

CommerceHONEY GIRL ANINAG-AVO

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.

Pros and Cons of GlobalizationPROS 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.

Areas Influenced by Globalization

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.

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.

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.

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.

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.

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.

Traditional Commerce vs. E-Commerce

Advantages and Disadvantages of E-CommerceAdvantages DisadvantagesConvenience - 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.

E-Commerce Applications

Email Online Catalogs Shopping Carts EDI File Transfer Protocol Web Services

Effects of Globalization to E-Commerce Economic and Trade Processes Field

Education and Health Systems

Culture Effects

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 .

References

http://www.businessdictionary.com/definition/globalization.html https://www.forbes.com/sites/mikecollins/2015/05/06/the-pros-an

d-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