Saturday, March 26, 2011

Advantages and disadvantages of E-commerce

E-commerce has some advantages for international trade. One is that an open global economy allows the ability of markets to interact and trade without concerns about geographic location or time. Another advantage is the volume of goods traded internationally will increase in both developed and developing countries. E-commerce also allows companies to trade internationally without negatively effecting the environment. This also reduces the amount of materials, energy and land consumed by these structures. A disadvantage that e-commerce has on international trade is the lack of privacy, data protection and security for the companies involved. Another disadvantage is that it is difficult for both parties to communicate which brings problems in verifying records when transactions are conducted online. Also a disadvantage in e-commerce is for developing countries. Since the U.S. is the leader in defining the Internet, by trading internationally companies will design their Internet and e-commerce around the U.S.

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