1. Chapter Eighteen Copyright, John Wiley and Sons, Inc. Learning Concepts – Chapter 18 1. Understand that E-Commerce is opening the international business environment. 2. Know that E-commerce may help firms overcome trade barriers. 3. Understand a few of the prospects for global commerce in the years ahead. Global Internet and E-Commerce. Global Internet and E-Commerce. Chapter Eighteen

2. Copyright, John Wiley and Sons, Inc. Otis Elevator: Using IT Otis is the leading company producing elevators and escalators. 80% of sales are outside the United States. It has more than 1.2 million installations. Otis started OTISLINE (a registered trademark) which is a computerized dispatch system for elevator repair and maintenance. By 2000, Otis was taking orders on OTISLINE in 49 countries and 29 languages. The company expects e-commerce to account for more than 25% of total growth by 2003.

3. Chapter Eighteen Copyright, John Wiley and Sons, Inc. Internet and E-Commerce Diffusion The Internet is approaching worldwide distribution. The highest penetration countries are the United States, Taiwan, Singapore, Norway, Netherlands, South Korea, Israel, Ireland, Hong Kong, Germany, Finland, Denmark, Canada, Belgium, and Australia. The lowest penetration for the Internet is Ukraine, Thailand, Serbia, Romania, Poland, Mexico, Lithuania, Latvia, India, Indonesia, Hungary, Bulgaria, and Argentina.

4. Chapter Eighteen Copyright, John Wiley and Sons, Inc. Comparative Internet Demographics Female usage is higher in United States and Canada, but lower everywhere else. American spend about 13 days on line per month. Japanese, about 14 days. Americans spend more time than anyone else. Japanese somewhat less, the French still less.

5. Chapter Eighteen Copyright, John Wiley and Sons, Inc. E-Commerce around the Globe This is the fastest growing segment of the internet economy. It accounts for less than 1% of total United States sales, but is growing faster than any other segment. The highest use segments are: Food, Clothing, Jewelry, Toys, Music, Video, Books, Sports Equipment, Electronics, Computers, Travel, Tickets, Stocks, Cars.

6. Chapter Eighteen Copyright, John Wiley and Sons, Inc. E-Readiness To be e-ready, a firm needs:  Connectivity  Information security  Positive E-climate  National E-readiness

7. Chapter Eighteen Copyright, John Wiley and Sons, Inc. Cross-Border E-Commerce Cross border transactions account for 25% of all e- transactions. They are expected to grow to $3.7 trillion by 2004. Much greater percentages of sales are coming from international locations.

8. Chapter Eighteen Copyright, John Wiley and Sons, Inc. Global E-Commerce Challenges The challenges E-commerce faces include:  Standardization Forces  Localization Challenges  Taxation Issues