Ecommerce and Globalization Essay

670 Words Oct 3rd, 2013 3 Pages
In the past couple years the relationship between E-Commerce and globalization has become more complex then it was in the mid-2000s. Many economists believe that it is becoming more beneficial for local firms to stray away from conducting business nationally. As stated in a journal article from 2012, local firms may have certain advantages, which include “local knowledge, strong brand names, distribution channels and service infrastructure.1” This brings to question whether firms should invest in finding opportunities in local markets as opposed to using the internet and spending more money attempting to reach out to international markets1. Since 2007, commerce has seen a notable drop in capital being moved internationally of over …show more content…
She believes the days of just shipping to dozens of global markets without paying increased attention to each of them as individual markets are over. She also predicts that there will be an increase in brands selling direct in international markets. She claims it “is now commonplace to see large consumer brands operating their own e-Commerce-enabled sites in markets such as the US and the UK. However, only a handful such as Dell and Burberry operate transactional websites in dozens of markets around the globe.4” She expects a global expansion in direct commerce4. Accenture is a management consulting, technology services and outsourcing company helping clients become high-performance businesses and governments. According to their index, retailers are trending away from investing in large stores in new emerging markets. Instead, they are gauging new markets by placing small or temporary stores or attempting to use e-commerce to appeal to these areas to decide whether the region is worth the investment. Accenture believes that this not only will increase success by means of globalization, but it will stop saturation in these emerging markets5. This idea tends to agree with the economists who believe that learning more about an individual region will lead to more success by means of international e-commerce.

Citations:

1. Totonchi J. and

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