Premium Essay

International Barriers to Ec

In: Business and Management

Submitted By vishalkankaria
Words 860
Pages 4
Running head: INTERNATIONAL BARRIERS TO EC 1

Analysis of International Barriers to EC and
Their effects on success of EC
Vishal Kankaria
Sullivan University
4Q-CSC560X-A2-07
October 4, 2015

INTERNATIONAL BARRIERS TO EC 2
Analysis of International Barriers to EC and
Their effects on success of EC
Advent of internet is the founding pillar of E-commerce industry and this industry has immensely benefitted from the increased use to internet. Internet has changed the way companies do business and the way people buy, sell and organize business activities (Gary 2011).
Growth of EC exploded after the introduction of World Wide Web in 1990s (Turban 2012). Internet allowed people to exchange and transmit information both in text and pictures. According to Gary (2011), between 1997 and 2000, more than 12,000 Internet-related businesses were started with more than $100 billion of investors. This shows the sheer growth in size and volume of EC is a very short span of time.
Role of E-Commerce in
Modern Business
EC has made a huge impact on the way modern business is done. Porous geographic boundaries- EC has blurred the lines of international boundaries. Companies headquartered in USA, manufacture in China, Sell in Europe, process the transactions in India and thrive globally
Internet allows business to be conducted 24/7. There are no overtime costs or other costs to be paid. Network Effects have been felt by both businesses and consumers (Gary 2011). Law of diminishing return does not apply to EC. In fact the reverse is true. As the number of participants increase, customers get more value from bigger product portfolio, additional

INTERNATIONAL BARRIERS TO EC 3 competition among businesses etc. Businesses gain from a larger customer base, wider variety of tastes and hence a bigger space for different products and categories
EC has helped…...

Similar Documents

Premium Essay

Barrier

...Introduction: International Trade policies deal with the policies of the national governments relating to exports of various goods and services in various countries either on equal terms and conditions or on discriminatory terms and conditions. Trade policies also aim at protecting the domestic industry from the competition of the advanced countries through imposing quotas and build competencies by providing subsidies. All countries are dependent on other countries for some products and services as no country can ever hope to be self-reliant in all respects. There are countries having abundance of natural resources like minerals and oil but are deficient in having technology to process them into finished goods. Then there are countries that are facing shortage of manpower and services. All such shortcomings can be overcome through international trade. Though it seems easy, in reality, importing goods from foreign countries at cheap prices hits domestic producers badly. As such, countries impose taxes on goods coming from abroad to make their cost comparable with domestic goods. These are called tariff barriers. Then there are non-tariff barriers also that serve as impediments in free international trade. Tariff Barriers Tariffs are taxes that are put in place not only to protect infant industries at home, but also to prevent unemployment because of shut down of domestic industries. This leads to unrest among the masses and an unhappy electorate which is not a favourable......

Words: 1609 - Pages: 7

Premium Essay

Trade Barriers to International Trade

...WHAT IS GLOBAL/INTERNATIONAL TRADE? Global trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history (see Silk Road, Amber Road), it’s economic, social, and political importance has been on the rise in recent centuries. Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization. Without international trade, nations would be limited to the goods and services produced within their own borders. International trade is, in principle, not different from domestic trade as the motivation and the behavior of parties involved in a trade do not change fundamentally regardless of whether trade is across a border or not. The main difference is that international trade is typically more costly than domestic trade. The reason is that a border typically imposes additional costs such as tariffs, time costs due to border delays and costs associated with country differences such as language, the legal system or culture. Another difference between domestic and international trade is that factors of production such as capital and labor are typically more mobile within a country than across......

Words: 7774 - Pages: 32

Premium Essay

Barriers to International Trade- Non-Tariff Barriers and Infrastructure on Freight Transportation

...Barriers to International Trade- Non-Tariff Barriers and Infrastructure on freight transportation Intro Average applied tariffs on industrial products have declined from 15.5 per cent in 1990 to 7.9 per cent in 2003.[1] Yet, the volume of international trade is still less than one would expect from observed differences in factor endowments, tastes and technology between countries (Trefler, 1995). A possible explanation of the missing trade is non-tariff barriers to trade, including transport costs and other costs related to searching for international suppliers or customers, entering into contracts and shipping the goods or services from the domestic producer to the foreign customer. These transaction costs have several dimensions. First, there are the direct monetary outlays on communication, business travel, freight, insurance and legal advice. These are partly determined by the physical and cultural distance between the trading partners, but also the quality of infrastructure and the cost and quality of related services. EXAMPLE A second dimension of transaction costs is time. The proverbial "time is money" suggests a linkage between monetary outlays and the time dimension, but time also plays a role in its own right. This is particularly the case in industries that have adopted just-in-time business practices and have an international supply network. Just-in-time business practices imply that producers have small inventories of intermediate goods and......

Words: 3069 - Pages: 13

Premium Essay

Barriers

...There are many barriers to communication but the four key barriers are: process, personal, physical and semantic. Managers must take all of this into consideration as they deal with employees in the order to effectively communicate. If you think about communication, it is a process that begins with the sender and then is processed by the receiver. If the communication/message is decoded or if the message is disturbed any way it will be destroyed. As a manager I think it is very important to take into consideration these barriers as I’m communicating with my employees. In the document below I describe the four barriers and how I would overcome them. Process Barrier How a company disseminates information can make or break the communication process within an organization. There are many levels where the communication process can fail and become ineffective. There must be a flow of communication within the organization and it must be clear to managers and employees. High level executives should be making the decisions and there should be a structured process in place within the organization of disseminating that information downward. Managers must make sure that the same message is given so there is no misunderstanding between different departments or employees. Also, each individual must know who in the organization to contact if they have questions or concerns. As a general guideline I always make sure that new employees understand the organizational......

Words: 662 - Pages: 3

Premium Essay

Disfferent Non-Trade Barriers to International Business

...Non-tariff barriers to trade (NTBs) are trade barriers that restrict imports but are not in the usual form of a tariff. Some common examples of NTB's are anti-dumping measures and countervailing duties, which, although called non-tariff barriers, have the effect of tariffs once they are enacted. Some of non-tariff barriers are not directly related to foreign economic regulations but nevertheless have a significant impact on foreign-economic activity and foreign trade between countries. Different types of Non-tariff barriers: There are several different variants of division of non-tariff barriers. These are – 1. Licenses The most common instruments of direct regulation of imports (and sometimes export) are licenses and quotas. License system requires that a state (through specially authorized office) issues permits for foreign trade transactions of import and export commodities included in the lists of licensed merchandises. Product licensing can take many forms and procedures. The main types of licenses are general license that permits unrestricted importation or exportation of goods included in the lists for a certain period of time; and one-time license for a certain product importer (exporter) to import (or export). 2. Quotas Licensing of foreign trade is closely related to quantitative restrictions – quotas - on imports and exports of certain goods. A quota is a limitation in value or in physical terms, imposed on import and export of certain goods for a......

Words: 621 - Pages: 3

Free Essay

Barriers

...Barriers to Effective Communication Paper Communication is process that is used by humans to get the things they need and want in life. It is conducted in many forms and ways. Listening and hearing through communication is important to make sure instructions are understood and can be carried out effectively. In criminal justice there are formal and informal channels of communication and need to be conducted in a professional manner, in order to make factual and accurate reports to help in investigations. Barriers can hinder effective communication, rather it is emotional or physical. In this paper I will discuss all of these types of communications and the issues that may arise with them. Communication is a process that happens every day throughout life and involves several steps. It is a valued part of daily activities. People spend 70 percent of their time communicating. Every person can benefit from mastering this process through better understanding of others ideas and opinions. Having the ability to allow communication to flow is positive as it opens the door for personal and business relationships. Communication requires more than one other person. There are several different ways to communicate. Verbal is the most used form, people talk to each other to relay messages, instructions, learn, teach and to make conversation with one......

Words: 1070 - Pages: 5

Premium Essay

Barrier

...Barriers to Effective Communication Paper Interpersonal Communication Communication is a process used to relay information from one person to another. Some communication methods include; written and oral, verbal and nonverbal. Communication can be misunderstood if one does not understand the message or is cannot actively listen. Formal and informal communication can have barriers that can affect the messages one is trying to communicate properly. Communication is a process that involves two or more people exchanging information effectively however, this process can be interrupted and the message can be misunderstood or not received (Wallace, 2009). The first step that occurs within the communication process is the formation of a thought or idea. A person comes up with a thought or idea that one would like to share with another person or group. This thought or idea sometimes can be thought of as information that should be left unsaid or it can be important information that one should share immediately. However, communication is started with the transmission of that idea to another person (Wallace, 2009). Sending the idea or thought to a person can be completed in different mediums. A person can send a message through to another person: orally, written or by actions (Wallace, 2009). A person can call someone on the phone or talk to someone in person. Within the criminal justice field a general way of communication is through two way radios. Today a......

Words: 356 - Pages: 2

Free Essay

International Trade Dispute Ec Asbestos

...EC – ASBESTOS1 (DS135) PARTIES Complainant Canada AGREEMENTS TIMELINE OF THE DISPUTE Establishment of Panel TBT Annex 1.1 GATT Arts. III:4, XX and XXIII:1(b) Circulation of Panel Report Circulation of AB Report Adoption 25 November 1998 18 September 2000 12 March 2001 5 April 2001 Respondent European Communities 1. MEASURE AND PRODUCT AT ISSUE • • Measure at issue: France's ban on asbestos (Decree No. 96-1133). Product at issue: Imported asbestos (and products containing asbestos) vs certain domestic substitutes such as PVA, cellulose and glass (“PCG”) fibres (and products containing such substitutes). 2. SUMMARY OF KEY PANEL/AB FINDINGS • TBT Annex 1.1 (technical regulation): The Appellate Body, having rejected the Panel's approach of separating the measure into the ban and the exceptions, reversed the Panel and concluded that the ban as an “integrated whole” was a “technical regulation” as defined in Annex 1.1 and thus covered by the TBT Agreement, as (i) the products subject to the ban were identifiable (i.e. any products containing asbestos); (ii) the measure was a whole laid down product characteristics; and (iii) compliance with the measure was mandatory. However, the Appellate Body did not complete the legal analysis of Canada's TBT claims as it did not have an “adequate basis” upon which to examine them. GATT Art. III:4 (national treatment – domestic laws and regulations): As the Appellate Body found the Panel's likeness analysis between asbestos......

Words: 639 - Pages: 3

Premium Essay

Definition of Ec

...Definition of EC: Electronic Commerce is the sharing of business information, maintaining business relationship and conducting business transactions by means of telecommunication networks. It includes the sell-buy relationship and transactions between companies, as well as the corporate process that support the commerce within individual firms. Zwass (1996): Types of E-commerce: Electronic Commerce and its activities have been classified into the following types (Turban & King, 2012): Business to Business (B2B): * It is the exchange of products, services and information between businesses. ( Eg : Ford purchases tires from another manufacturer). Business-to-consumers (B2C): * A transaction between a company and a consumer where goods or services are to the consumers. (Eg: Target). Consumers to businesses (C2B): * In this case consumers make known a particular need for a product or service, and organizations compete to provide the product or service to consumers. Consumer-to-consumer (C2C): * In this case an individual sells products or services to other individuals. (Eg: Online Ads or Classifieds). Business to Employees (B2E): * In this case an organization uses E-Commerce internally to improve its operations and benefit their employees. Advantages 1. Delivers relevant and detailed information in seconds to the customer. 2. Helps small business compete against large companies. 3. Since e-commerce processes...

Words: 315 - Pages: 2

Premium Essay

Final Report on Ec

...Final report on EC A Report On “Status of e-Marketing in Bangladesh” Course Name: E-commerce Course code: 425 Submitted To: Md. Moktar Ali Associate Professor Department of Marketing University of Dhaka Submitted By: Shaikh Md. Rasel Roll-82, 16th Batch, Sec-B Department of Marketing University of Dhaka Date of Submission: November --, 2013. Letter of Transmission Md. Moktar Ali Associate Professor Department of Marketing University of Dhaka Subject: Submission of a report. Dear Sir, With due respect, I beg to state that I am very thankful to you as you have assigned me the report on “Status of e-Marketing in Bangladesh”. It is a great opportunity for me to acquire theoretical and practical knowledge about E-marketing, E-commerce and different terms of E-business. I have tried our best to gather what I believe to be the most complete information available. Your kind acceptance and any type of appreciation would surely inspire me. I would always be available and ready to explain further any of the contexts whenever asked. Sincerely yours, Shaikh Md. Rasel Roll-82, Sec-B, Batch-16th Acknowledgements Comprehensive works like report making or assignment preparation owe credit to multitude of people. Certainly, I should acknowledge the contributions of the pioneers in the field of E-commerce and E-marketing itself, especially those whose teachings have become a part of our thinking and......

Words: 3003 - Pages: 13

Premium Essay

It Barriers

...Social Media Barriers Kevin Robinson ITT Technical Institute Social Media Barriers After during research on social media there is several websites that talks about social media barriers whether it is talking about using social media for networking for jobs or to the simple chat room social media. In today’s society without social media people consider you to be an odd ball person, especially when you tell people you do not have a face book page. Today’s society is control by social media. With that being said everything has it’s up and downs. When using social media there are barriers to operating it. Like for instant, when you make a mistake offline, a few will know but when you make a mistake in front of hundreds or thousands of you online audience, most of them will know. Social media can have a negative influence on worker productivity. Employees may waste valuable time using social media channels such as Facebook and Twitter. They can also use social media to attack the company’s reputation. 5. When social media is used excessively or in the wrong way, it could have serious detrimental outcomes on both mental and even physical health of individuals. In this next paragraph I have research some companies online that has been very successful with social media. The first company is Martell Home Builders. Martell Home Builders is an Atlantic Canadian custom homebuilder. In the past, Martell relied heavily on realtors to keep their business moving forward. However, once...

Words: 476 - Pages: 2

Premium Essay

Barriers

...Critical thinking helps thinkers to act instead of reacting. Reacting results in hasty decisions that are not always well thought-out. Quick decisions can lead to error or cause more problems. By evaluating decisions a thinker is learning what works and what does not work. Critical thinking can be affected by barriers: internal and external. Family, an external barrier, helped me in a positive way to develop my critical thinking skills. According to Critical Thinking in Everyday Life, family emphasize the benefits of evaluating the reliability of information and questioning the credibility of the people who deliver it. This is true because during our informative years it is family who teaches right from wrong and encourages you to ask questions, feeding your curiosity. The way that I deal with family as being a barrier is I play the never ending question game with them. This allows me to explore different options and avenues instead of accepting what I’m being told, especially by my parents and grandparents. There are so many emotions that we have as individuals that negatively or positively influence our critical thinking. Letting emotions take the place of critical thinking and evidence that could convince others can undermine an argument (Cottrell, 2005, p.11). For instance, your opinion about the death penalty may strongly differ from someone who supports it, you might let your feelings about the issue cloud your judgment about any information/evidence that may......

Words: 357 - Pages: 2

Premium Essay

The Ec-Philippines Strategy Paper

...THE EC-PHILIPPINES STRATEGY PAPER 2007-2013 i TABLE OF CONTENTS LIST OF ABBREVIATIONS .......................................................................................... iii EXECUTIVE SUMMARY............................................................................................... 7 1. COUNTRY ANALYSIS ............................................................................................ 9 1.1. Analysis of the political situation...................................................................... 9 1.2. Analysis of the economic situation.................................................................. 11 1.3. Trade structure ................................................................................................ 13 1.4. Analysis of social developments...................................................................... 14 1.5. Analysis of the environmental situation......................................................... 16 2. THE PHILIPPINES’ POLICY AGENDA ............................................................ 17 2.1. The Medium Term Philippine Development Plan ........................................ 17 2.2. Assessing the reform process .......................................................................... 17 2.3. Cross-cutting issues: human rights, gender, governance ............................. 19 3. OVERVIEW OF PAST AND ONGOING EC COOPERATION, COORDINATION AND COHERENCE ........................................

Words: 26770 - Pages: 108

Premium Essay

Ec 380

...Globalization is important because it increases efficiency; it is inevitable because international competition requires it. The anti-globalization movement blames globalization for increased world poverty and income inequalities, child labor, environmental pollution and many other problems. 2. Nations usually impose restrictions on the free international flow of goods, services and factors. Differences in language, customs and laws also hamper these international flows. In addition, international flows of goods, services and resources may involve receipts and payments in different currencies, which may change in value in relation to one another through time. International relations are to be contrasted with the interregional relations, which face no such restrictions as tariffs and are conducted in terms of the same currency, usually in the same language, and under basically the same set of customs and laws. 3. A rough measure of the degree of economic interdependence of a nation with the rest of the world is given by the ratio or percentage of its exports to its gross domestic product (GDP). For small, developed nations, such as the Netherlands and Belgium, the ratio can reach as high as 60 to 90. For large nations, such as Germany, England, France and Italy, the ratio ranges from 25 to 35. For the United States it is between 12 and 17 and growing. 4. The United States relies less on international trade for its high standard of living than most other developed......

Words: 1086 - Pages: 5

Premium Essay

The Impact of Tariff and Non-Tariff Barriers International Trade

...ECFI 644 International Economics Instructor: Dosse Toulaboe By Zhenjie Song (Leo) The Impact of Tariff and Non-Tariff Barriers International Trade Introduction In nowadays, tariff and non-tariff barriers have affected the trends and structure of international trade, the geographic direction, and importing and exporting countries relations (Stigler, 1971). This research paper mainly will talk about the tariff, non-tariff, and the relationship and impact of them. Tariff A tariff is simply a tax or duty placed on an imported good by a domestic government. Tariffs are usually levied as a percentage of the declared value of the good, similar to a sales tax. Unlike a sales tax, tariff rates are often different for every good and tariffs do not apply to domestically produced goods. Tariff could be an old and popular method of obtaining revenue from international business and economic activities. Generally, government levy tariffs for three main reasons. The first is that the tariff can protect fledgling domestic industries from foreign competition; the second is that the tariff can protect aging and inefficient domestic industries from foreign competition; the last reason is that the tariff can protect domestic producers from dumping by foreign companies or governments. Dumping occurs when a foreign company charges a price in the domestic market which is "too low". In most instances "too low" is generally understood to be a price which is lower in a foreign market than the......

Words: 2364 - Pages: 10