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E-Business and Globalization. E-Business and Globalization. What are some of the implications when considering E-Business in terms of Globalization? Are some of the changes, outcomes, implications we see as a result of the increased presence and impact of the Internet and E-Business new?.
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E-Business and Globalization • What are some of the implications when considering E-Business in terms of Globalization? • Are some of the changes, outcomes, implications we see as a result of the increased presence and impact of the Internet and E-Business new?
E-Business and Globalization • Impact of technology • Throughout history there has always been technological changes that have resulted in economic impacts • Industrial Revolution • Transportation Changes • Railroads, Automobiles, Flight • Computer Technology • When these changes occur there are inevitably winners and losers • Overall, have we benefited or suffered as a result of these changes? • Have the benefits been equally shared? • Should they be equally shared? • Implications? • Why should the impact of the Internet in general, and E-business in particular, be any different?
E-Business and Globalization • Impact of Internet/E-Business technology on: • Economics • Most traditional business models continue to be: Profit = Revenue – Expenses • How has the Internet/E-Business affected that basic model? • Ways of generating revenues? • Ways of eliminating/reducing expenses? • Scale of profit that is achievable? • Has the Internet/E-Business dimension provided more or fewer opportunities for: • Individuals? • Business? • Nations?
E-Business and Globalization • Impact of Internet/E-Business technology on: • Economics • Revenue Generation • Still requires some kind of sustainable, competitive advantage • Low Cost versus Differentiation • How is this affected? • Expense Reduction • Ability to have more “virtual” aspects to a business • Advantages? • Disadvantages? • Overall • It might be difficult to find significant differences from an economics perspective • Implications?
E-Business and Globalization • Impact of Internet/E-Business technology is most dramatic in the non-economic considerations which may include: • Sociological • Cultural • Political • Ethical/Moral • These are the areas that are relatively understudied and not always considered as much as the economic aspects • Implications?
E-Business and Globalization • Sociological Considerations • Wealth distribution • Different nations and regions have benefited to different degrees • Despite the overall increase in wealth that can occur there is a growing gap between the wealthy and the poor • Change in rural/urban mix driven by technological changes in general and Internet/E-Business in particular • Scale and rate of change is so fast • Are we able to: • Realize the implications • Adapt to the new environment • Make the necessary societal adjustments • Implications?
E-Business and Globalization • Cultural Considerations • Trend towards a more uniform world • Largely based upon Western standards? • Risk of loss of cultural identities if economics trumps culture • Implications of continued, and possibly increased, clashes of cultures
E-Business and Globalization • Political Considerations • Trends towards more multinational agreements on: • Trade • Environment • Finance and Accounting Standards • Implications? • Growing strength of transnational bodies such as WTO, IMF, World Bank • Growing strength of corporations • If E-Business can cover the globe then who is responsible for: • Managing • Monitoring • Taxing • Can it be managed, monitored, taxed, etc? • If so, should it be? • Implications for individual nation states?
E-Business and Globalization • Ethical/Moral Considerations • Whose ethical/moral standards should apply? • Implications if these standards conflict? • Internet pharmacies • Internet pornography • Is there a “greater good” to be considered or is it just business? • If the Internet/E-Business is truly a global phenomenon, is it possible to consider a common good for the whole world?
E-Business and Globalization Overall • The economic considerations of E-Business and Globalization are nothing new • While the scale and speed may be new, these changes and the subsequent issues have been around since humans stopped being pure hunter/gatherers • What is new(er) are some of the other sociological, political, moral and ethical issues that have arisen • Those may represent the greater challenges and these have to be better understood