The Electronic Commerce Contribution to the Global Economy and Productivity

The Electronic Commerce Contribution to the Global Economy and Productivity.

Electronic Business 107

July 14th, 2010

Abstract

In recent years, the global economy has grown beyond expectations, and the effectively development of the private sector plays an important role in this process. Many observers believe advances in information technology driven by Internet growth has contributed to a fast and reliable international economy. Even some dare to say that these developments created a global impact offered by the extension of business operations across the telecommunications industry where virtual shopping in every sector of the economy is growing financially providing greater variety of products and user safety.

Globalization refers to the extension of the international business. There are many companies that sell their products and goods in electronic commerce to expand their markets, or also open new markets in order to focus on international audiences as domestic multicultural groups. This worldwide phenomenon includes corporate data and Internet technologies guides to improve processes, interactions and transactions with customers, employees and partners. The Internet and electronic commerce are tools of globalization. We believe it is important to consider some scenarios that allow us to understand the contribution of electronic commerce in the global economy and productivity through the internationalization of the economy, the extent of commercial transactions and communications sector.

First, the Internationalization of the economy through Electronic commerce is a relatively new term that describes the use of electronic means to pursue business objectives. (King & Palmer, 1997, p.13). This means that the process of economic and technological globalization is because users enjoy a complete information exchange for the purchase of goods or services of any nature with the aim of satisfying their needs. The economic effects of electronic commerce will also be felt in pricing, which is likely to become much more competitive, and in the structure of the retail business. Existing intermediaries, from retailers to stockbrokers and banks, may find their role has been redefined or eliminated (Unknown Economist, 2000, p.354). All this would lead to a reduction in the budget of organizations obligations to eliminate farm worker contracts, management of supplier relations, logistics aerodynamic, reduction of inventory, costs of distributors which generates more profit per sale unit of a product. In response to all this, the world trade organization is changing in how to act by removing the old structures and hierarchical barriers between companies and between suppliers and customers.

Second, the extension of business operations through globalization is an international integration of markets for goods and services that generates many benefits to industrial and developing countries. The field of services is one of them, where they have developed several websites that offer voice, data, sounds and images targeted to many market sectors. There are videoconferencing, data transmission, electronic mail and trade services that are revolutionizing our lives at home and at work. For example: A January survey of online shopping satisfaction conducted by Visa USA Research reported that 98 % of consumers who shopped online during the holiday season were pleased with the experience. The survey also reported that 90% planned to shop online again. (Chicago&Turabian, 1999, p.21). Some significant changes that can partly redraw the urban Information & Communications Technology scenario have indeed occurred, such as a reduction of connectivity costs