EFFECTS OF GLOBALIZATION TO E-

COMMERCEEileen Rose C. Quilon

WHAT IS GLOBALIZATION?

It is the tendency of investment funds and businesses to move beyond domestic and national markets to other markets around the globe, thereby increasing the interconnection of the world.

Has the effect of markedly increasing international trade and cultural exchange.

ACTIVITIES INVOLVED IN GLOBALIZATION

IMPACTS OF GLOBALIZATION ON WORLD ECONOMY

More efficient marker – the sign of an efficient market is where there is an equilibrium between what buyers are willing to pay for a good or service and what sellers are willing to sell for a good or service.

Increased competition – with more competitors to fight over market share, each company has to constantly look to improve their goods or services or create more value for their customers.

Stabilized security – when you economy depends largely on another country’s economy, it’s hard to imagine either one of the countries attacking the other. In a weird sort of way, globalization helped heighten world security.

More wealth equality throughout the world – globalization may have stopped you from buying another flat screen TV, but it also helped countless people in developing countries put food on their table for their families.

NEGATIVE AND POSITIVE EFFECTS OF GLOBALIZATIONNegative Positive

The growth of international trade is exacerbating income inequalities, both between and within industrialized and less nations.

It creates greater opportunities for forms in less industrialized countries to tap into more and larger markets around the world.

Global commerce is increasingly dominated by transnational corporations which seek to maximize profits without regard for the development needs of individual countries or the local populations.

This can lead to more access to capital flows, technology, human capital, cheaper imports and larger export markets.

Competitions among developing countries to attract foreign investment leads to a “race to the bottom” in which countries dangerously lower environmental standards.

It allows businesses in less industrialized countries to become part of international production networks and supply chains that are the main conduits of trade.

EXAMPLES OF GLOBALIZATION

Globalization in Economics• Multinational corporations operate on a global scale, with satellite offices and branches in numerous locations.

• Outsourcing can ass to the economic development of a struggling country, bringing much needed jobs.

• Some automobiles use parts from other countries, as in a car being assembled in the US with the parts coming from Japan, Korea, or Germany.

Globalization in the Blending Cultures• Colonization all over the world was a major cause of globalization.

• Improved travel facilitated the growth of globalization, as people moved for a better job, a better life, or fled from danger or oppression.

• Satellite television allows shows from one country to be broadcast in many others, adding to cultural globalization.

Globalization in Technology • The Internet is a major contributor

to globalization, not only technologically but in other areas as well, like cultural exchanges of the arts.

• Cell phones connect people all over the world like never before. Around 60% of all people in the world use cell phones.

• Military cooperation between countries adds to globalization, such as the Strategic Arms Reduction Treaty or anti-terrorism agreements.

WHAT IS E-COMMERCE?

A term for any type of business 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 auction or music sites, to business exchanges trading goods and services between corporations.

CLASSIFICATION OF E-COMMERCE BY THE NATURE OF THE TRANSACTIONS

Business-to-Business (B2B) – Most E-Commerce is currently implemented B2B type. E-Commerce transaction type includes iOS described earlier as well as inter-organizational transactions conducted in the electronic market.

Business-to-Consumer (B2C) – This is a retail transaction with individual buyers.

Consumer-to-Consumer (C2C) – A consumer sells directly to another consumer.

Consumer-to-Business (C2B) – Included in this category are individuals who seek sellers and individuals who sell products or services to the organization interact with them and agree on a transaction.

Nonbusiness E-Commerce – Nonbusiness organizations such as academic institutions, nonprofit organizations, religious organizations, social organizations, and governmental agencies are using various types of E-Commerce to reduce costs or to improve operations and services public.

Intrabusiness E-Commerce – Are included in this category are all the internal activities of the organization, the bias is run on the Internet which involve the exchange of goods, services or information

BENEFITS OF E-COMMERCE

The primary benefits of e-commerce revolve around the fact that it eliminates limitations of time and geographical distance. In the process, e-commerce usually streamlines operations and lowers costs

SPECIALIZED FORMS OF E-COMMERCE

M-Commerce(Mobile Commerce) – the rapid penetration of mobile devices with Internet has opened new avenues of e-commerce for retailers.

F-Commerce(Facebook Commerce) – the immense popularity of Facebook provides a captive audience to transact business.

EXAMPLES OF E-COMMERCE

Online Shopping

Electronic Payments

Online Auctions

Internet Banking

Online Ticketing

E-COMMERCE TRENDS FOR ONLINE GROWTH IN 2017

Digital Payment Types

The Rise of Fast Delivery

E-Commerce Personalization, Big Data and AI

Loyalty Schemes

Even More Omni-Channel

Mobile Commerce

Introducing Chatbots

EFFECTS OF GLOBALIZATION TO E-COMMERCE

Increased high standard of living - Education Increased high standard of living - Economical

Increased high standard of living - Ecological

CONT…

Increased high standard of living - Technological

Increased high standard of living - Political

Increased high standard of living - Cultural

SYNTHESIS

Stated by Manshady et. al., globalization and technological change have created a new global economy “powered by technology, fueled by information and driven by knowledge.”

The development of globalization builds new challenges and prospects in many areas of the industry. It has various constructive, inventive, and dynamic phases. And it has been one of the most prominent occurrence of the 20th century that molded the world economy vividly.

Since that globalization has its own special developments, these days in the competition field, those companies and countries are successful which by the use of the information technology and mainly E-Commerce, have improved their competence, dynamism, and speed in the process of export and by lessening the processes of work, make it straightforward and profitable.

REFERENCES

Investopedia. “Globalization”. 2017. Retrieved from http://www.investopedia.com/terms/d/development-economics.asp

Boundless. “Negative and Positive Effects of Globalization for Developing Country Business”. 2016. Retrieved from https://www.boundless.com/users/235420/textbooks/business-fundamentals/international-business-for-the-entrepreneur-14/globalization-opportunities-and-threats-to-developing-country-business-55/negative-and-positive-effects-of-globalization-for-developing-country-business-253-15556/

TheCollegian. “4 Positive Impacts of Globalization to World Economy”. Retrieved from http://www.kstatecollegian.com/2013/05/07/4-positive-impacts-of-globalization-on-world-economy/

Network Solutions. What is E-Commerce. 2014. Retrieved from http://www.networksolutions.com/education/what-is-ecommerce/

TheBalance. “Let’s Ask the Basic Question: What is Ecommerce?”. Retrieved from https://www.thebalance.com/let-s-ask-the-basic-question-what-is-ecommerce-1141599

E-Commerce: Advertising Strategy of World Companies. “Classification of E-Commerce”. 2013. Retrieved from http://jackecommerce.blogspot.com/2014/09/classification-of-e-commerce.html

YouDictionary. “Examples of Globalization”. 2017. Retrieved from http://examples.yourdictionary.com/examples-of-globalization.html

SmartInsights. “7 Ecommerce Trends for Online Growth in 2017”. 2017. Retrieved from http://www.smartinsights.com/ecommerce/ecommerce-strategy/7-ecommerce-trends-online-growth-2017-paid-marketplace/

THANK YOU.