International Nature of Electronic Commerce Essay Example

realize that the only way to do business effectively in other cultures is to adapt to those cultures.

The phrase "think globally, act locally" Is often used to describe this approach. The first step that a web business usually takes to reach potential consumers In other countries, and thus In other cultures, Is to provide local language versions of its website. This may mean translating the website into another language or regional dialect. Researchers have found that consumers are far more likely to buy products and services from websites in their own language, even if they an read English well. Only 370 million of the world's 6 billion people learned English as their native language.

An Important element of business trust Is anticipating how the other party to a transaction will act In specific circumstances. That Is one reason why companies with established brands can build online businesses more quickly and easily than a new company without a reputation. The brand conveys some expectations about how the company will behave. For example, a potential buyer might like to know how the seller would react to a claim by the buyer that the seller serpentine the quality of the goods sold. Part of this knowledge derives from the partners ideally have a common legal structure for resolving disputes.

The combination of language and customs is often called culture. Most researchers agree that culture varies across national boundaries and, in many cases, varies across regions within nations. All companies must be aware of the differences in language and customs that make up the culture of any region in which they intend to do business. 18 Businesses that

successfully meet the challenges posed by trust, language, and ultra issues still face the challenges posed by variations and inadequacies in the infrastructure that supports the internet throughout the world.

Internet infrastructure includes the computers and software connected to the internet and the communications networks over which the message packets travel. In many countries other than the United States, the telecommunications industry is either government owned or heavily regulated by the government. In many cases, regulations in these countries have inhibited the development of the electrification infrastructure or limited the expansion of that infrastructure to a size that cannot reliably support internet data packet traffic.

More than half of all businesses on the web turn away international orders because they do not have the processes in place to handle such orders. Some of these companies are losing millions of dollars worth of international business each year. This problem is global; not only are U. S. Businesses having difficulty reaching their international markets, but businesses in other countries are having similar difficulties reaching the U. S. Market.