1. E-Commerce Outside of the USA By Arthur Fotos

2. Global E-Commerce n $50.4 Billion (US$) in 1998 –USA accounts for 74% of E-Commerce Revenue –Europe - $5.6 Billion –Asia - $1.25 Billion –Japan - $55 Million –Latin America - $170 Million –Australia/New Zealand - $100 Million –Middle East - $11 million n $1.3 trillion projected in 2003 –Rest of world will account for 46%

3. Internet Users By Region

4. Obstacles Of Global E- Commerce n Poor Infrastructure –most people don’t have computer/internet access –internet access can be 10-100x more expensive outside of USA n Taxation issues –which country levies taxes on international transaction n Payment/Delivery of Products –most people do not have credit cards –shipping costs can make shopping online impractical n Economic/Social Issues –most of world is cash based economy –Haggling over price is still common in most of the world

5. Advantages of Basing E-business Outside of USA n Tax advantages - –can set up business in country with low taxes n Sell Gray/Black market products and Services – internet gambling - n $600m a year industry n 90% of customer are US citizens n 270+ sites, most based in Caribbean –offshore banking - n can set up bank account in foreign country over the internet n can hide assets from IRS, etc.

6. Credits n Internet Gambling Statistics - –American Bar Association Journal -March 1999 n Internet Statistics - –NUA Internet Surveys -www.nua.com –E-Commerce Times - www.ecommercetimes.com –International Data Corp. -www.idc.com –Wired Magazine –USA Today - –CommerceNet - www.commerce.net