1. EFFECTS
OF GLOBALIZATION
TO E-COMMERCE
by:
ELMER CAPADOSA BUENAVIDES

2. LEARNING OBJECTIVES:
1. Define globalization
2. Describe and discuss activities involved in
globalization
3. Discuss the three important drivers of globalization
including its good and bad sides
4. Define E-commerce and describe its various
classification by the nature of transaction.
5. Describe the E-Commerce Facts for current trends
and future prospects
6. Discuss the pros and cons of E-Commerce
7. Describe and discuss the effects of globalization to
E-Commerce.

3. OUTLINE:
1. What is Globalization?
2. Activities involved in Globalization
3. The drivers of Globalization
4. Good sides and bad sides of Globalization
5. What is E-Commerce?
6. Classification of E-Commerce by the nature of the
transactions
7. E-Commerce Facts: Current trends and future
prospects
8. Pros and Cons of E-Commerce
9. Effects of Globalization to E-Commerce
10. Synthesis (Insights)

4. What is GLOBALIZATION?
GLOBALIZATION
-is a process of interaction and integration among
the people, companies, and governments of
different nations, a process driven by
international trade and investment and aided by
information technology. This process has effects
on the environment, on culture, on political
systems, on economic development and
prosperity, and on human physical well-being in
societies around the world.

5. Activities involved in Globalization
Travel
Abroad
Shoes
made in
Korea
Big Mac from
Moscow
Internet
US Brand
US –China
Business
Partners
Cellphones
Satellite TV
Online Bus.
CD Player-Made
in Japan
T-Shirt Made
in Mexico

6. The Drivers of Globalization
1.The Rapid spread of IT and
communications across the
world
2. The massive investment in
broadband technologies or
enablers like fiber optic cables
and undersea cables in the wake
of the dotcom bubble
3.The adoption of English as the
medium of instruction in many
countries across the world.

7. Good sides and Bad sides of globalization
GOOD SIDES
1. Easier to communicate
throughout the boundaries
2. Easier to travel
3. Cultural interchange
4. International Trade
5. Better and cheaper products
6. Improvement of new
technologies
7. The cheaper products
increases the purchase power
8. The transport of the products
is easier and faster
9. Globalization creates a
political and an economical
union, which facilitates the
agreement between the
countries
BAD SIDES
1. Delocalization creates
unemployment in developed
countries
2. Non-controlled circulation of money
(free market) – no ethics
3. The businessmen and the big
companies are the only winners in
globalization
4. Exploitation of the workers in the
developing countries – incl. children
5. Money problems can easily be
spread
6. The mix of cultures can lead to
racism, xenophobia, intolerance and
loss of national identity
7. Small companies have to go out of
business because they cant
compete with the multinationals
8. As a result the gap between the
poor and the rich people increases

8. What is E-
Commerce?
E-Commerce
-is defined as the use of electronic
communications and digital information
processing technology in business
transactions to create, transform, and
redefine relationships for value creation
between or among organizations, and
between organizations and individuals.

9. Classification of EC by the Nature of the
Transaction
• Business-to-business (B2B) : EC model in
which all of the participants are businesses or
other organizations
• Business-to-consumer (B2C): EC model in
which businesses sell to individual shoppers
• Business-to-business-to-consumer (B2B2C):
EC model in which a business provides some
product or service to a client business; the client
business maintains its own customers, to whom
the product or service is provided

10. • Consumer-to-business(C2B): individuals
who use the Internet to sell products or
services to organizations and /or seek
sellers to bid on products or services they
need
• Consumer-to-consumer (C2C) :
consumers sell directly to other
consumers
• Mobile commerce (m-commerce)—EC
transactions and activities conducted in a
wireless environment

11. • Location-commerce—(l-commerce)
m-commerce transactions targeted to
individuals in specific locations, at specific
times
Intrabusiness (organizational) EC: EC
category that includes all internal
organizational activities that involve the
exchange of goods, services, or
information among various units and
individuals in an organization

12. • Exchange (electronic): a public e-market
with many buyers and sellers
• Exchange-to-exchange (E2E): EC model
in which electronic exchanges formally
connect to one another for the purpose of
exchanging information

13. E-COMMERCE FACTS: CURRENT TRENDS AND
FUTURE PROSPECTS
INVENTION ON
ONLINE SHOPPING
E-Commerce Facts

14. SHOPPERS BY AGE
GROUP
E-COMMERCE IN
AMERICA

15. TOP E-COMMERCE
STORE IN USA
CONSUMER
ONLINE SHOPPING
BEHAVIORS

16. PAYMENT MODES
USED IN E-
COMMERCE
GLOBAL
ECOMMERCE SALES

17. E-COMMERCE
SALES BY 2015
E-COMMERCE
TO M-
COMMERCE

18. PROS AND CONS OF E-COMMERCE
PROS
• No Standing in Queues or
Being Placed on Hold
Forever
• Easier to Compare Prices
• Access to Stores Located
Remotely
• No Need for a Physical
Store
• Common Availability of
Coupons and Deals
CONS
• Lack of Personal Touch
• Easier to Compare
Prices
• Inability to Experience
the Product Before
Purchase
• Need for an Internet
Access Device
• Need for an Internet
Connection

19. • Lots of Choices
• Stores Are Open All the
Time
• Ability to Buy and Sell to
Other Consumers
• Instantaneous Purchase
of Digital Goods
• Ability to Have Vendors
Bid for Your Business
• Not About "Location
Location Location“
• Ability to Scale Up
Rapidly
• Common Availability of
Coupons and Deals
• Credit Card Fraud
• Security Issues
• Delay in Receiving
Goods
• Inability to Identify
Scams
• Extraordinarily High
Reliance on the Website
• Multiplicity of
Regulations and
Taxation

20. • Unlimited Shelf Space
• Ease of Communication
• Superior Customization
• No Need to Handle Currency
Notes
• Efficient Procurement
• Delivery of Each Individual Item
• Superior Inventory Management
• Reduced Employee Costs
• Gain Search Engine Traffic
• Ability to Sell Low Volume Goods
Too
• Ability to Track Logistics
• Chargebacks
• Delivery of Each
Individual Item
• Expense and Expertise
Needed for Ecommerce
Infrastructure
• Need for Expanded
Reverse Logistics

21. EFFECTS OF GLOBALIZATION TO
E-COMMERCE
E-
COMMERCE
GLOBALIZATIO
N
Life’s
standard
increased:
Education
Social
Industrial
Financial
Economic
Political
Informational
Competition
Ecological
Cultural
Technical
Legal/Ethical

22. SYNTHESIS(INSIGHTS)
• Globalization and E-Commerce which is part of the evolution of
Information Technology had great impact in all aspects of the
society that brought a lot of changes and affect human life
either good or bad.
• This refers also to Digital Revolution because the economy is
based on digital technologies including:
– Digital communication networks, Computers, Software,
Other related information technologies
• Also called:
– Internet economy, New economy, Web economy

23. • Through this new economy, where e-commerce is greatly
involved, it actually expands the marketplace to national and
international markets because of the challenges in the
globalization.
• It enables people to shop or do other transactions 24 hours a
day, all year round from almost any location
• Provides consumers with less expensive products and
services by allowing them to shop in many places and conduct
quick comparisons.
• Provides consumers with more choices and enables them to
work at home, and to do less traveling for shopping, resulting
in less traffic on the roads, and lower air pollution.
• Thus, these few activities mentioned, simply change the way
how people live and to make the country progressive and the
world a better place to live with.

24. REFERENCES:
• Jalil Totonchi and Kholamreza Manshady. (2012, February). International Journal of e-Education,
e-Business, e-Management and e-Learning, Vol. 2, No. 1. Retrieved from
http://www.ijeeee.org/Papers/085-Z00068T889.pdf
• The Levin Institute - The State University of New York (2013) . Globalization 101 . Retrieved from
http://www.globalization101.org/what-is-globalization/
• Management Study Guide (2008-2013). The Drivers of Globalization: Friedman’s Flatteners.
Retrieved from http://www.managementstudyguide.com/drivers-of-globalization.htm
• .docstoc (2011). Advantages and Disadvantages of Globalization. Retrieved from
http://www.docstoc.com/docs/61645021/Disadvantages-of-Globalization-on-Small-Business
• wikibooks ( modified on 2 April 2013, at 05:18.). E-Commerce and E-Business/Concepts and
Definitions. Retrieved from
http://en.wikibooks.org/wiki/E-Commerce_and_E Business/Concepts_and_Definitions
• Prentice Hall, (2000). Chapter 1 Foundation of Electronic Commerce[PowerPoint
slides].Retrieved from www.prenhall.com/divisions/.../ppt/chap01.pp.

25. • The Levin Institute - The State University of New York (2013) . Globalization 101 . Retrieved from
http://www.globalization101.org/what-is-globalization/
• GroupIn News ( 2011, august 10). E commerce Facts: Current Trends & Future Prospects. .
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• Ajeet Khurana. E-Commerce. 36 Advantages and Disadvantages of Ecommerce
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fromhttp://www.economic-geography.org/index.php?
option=com_content&view=article&id=98:effects-of-globalization&catid=98:inf&Itemid=85