Global Electronic Commerce: A Policy Primer by Catherine Mann, Sue Eckert, Sarah Cleeland Knight

By Catherine Mann, Sue Eckert, Sarah Cleeland Knight

Digital trade is altering the ways in which companies and shoppers have interaction with one another, the goods they bring, purchase, and promote, and how that they impart, study, and develop into expert. How can policymakers place their international locations and themselves to use this new surroundings? How may still policymaking comply with a extra international, extra networked, and extra information-rich market the place relationships and jurisdictions among the governments, companies, and voters of other nations more and more overlap? How can governments successfully harness quickly altering applied sciences and companion with either household and international inner most sectors to harvest the best advantages for his or her elements? This primer solutions those questions utilizing either common research and particular examples. It addresses specifically the wishes of policymakers in rising markets who needs to formulate and refine rules that have an effect on e-commerce in parts akin to telecommunications and finance, overseas alternate and family distribution, and taxation and privateness. businesses contemplating doing enterprise in those economies will also locate that the examples of the problems that policymakers face, the various coverage methods that they select, and the industry possibilities that come up as a growing number of economies around the globe embody worldwide digital trade

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Without the Internet, these firms would not know about the GE tender. , a small systems integrator, can on the Internet design details, post that fabrication shops in Taiwan can download, determine if they can build it, and then bid on the contract. Greater access to niches in time and space does not reduce their value but increases the possibilities for how they can be used. Using the greater access to information about buyer preferences and needs, businesses can tailor goods and services to exactly what the buyer wants.

The individual does not bear the costs of setting up the network, just the costs to link to it. Nor does the individual have to wait until other participants join the network to reap benefits, because some already have—the network is already operating. It makes sense to ‘‘draft’’ in behind the leaders that incurred the costs for developing the network; the benefits are greater than the costs. But what if the network is not a perfect fit for the individual, or the country? com country where PC penetration is relatively high.

What difficulties can arise when some governments choose intervention by mandate while other governments encourage market-oriented solutions? Government Intervention and the Economics of Network Effects Network effects underpin the success of the Internet and the uptake of electronic commerce. But does a country maximize its benefits and minimize its costs simply by joining any network? Internet policy and the economics of network effects need to be addressed at the individual level as well as the level of society (the policymaker’s level).

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