International Electronic Commerce - Essay Example

Internet has become a necessity to a large portion of the world population today, with no difference between age, color, religion, nationality or gender; but what really they are all using it for are for different requirements based on their needs. Internet has transformed the practice of international trade. In regards to international business correspondence and communication, email provides significant advantages over telephone, fax and postal communication. In international marketing, the use of websites has allowed even small firms to reach global audiences.

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In international racket research, internet has allowed traders to easily tap into large electronic databases of demographic and trade data. International shipping companies now routinely provide electronic tracking of shipments for the convenience of exporters and importers. Banks allow traders to provide payment and related documents electronically. This is how new products and services are becoming rapidly available, but business also requires attention to issues such as protection of data and controlling access to computers and networks.

Nowadays, Is usually see a large business firms connected to the Internet and revived some form of Internet access for their executives with a fast connections, which allows to send e-mail in seconds. This is a wonderful advantage for international contacts. This is particularly useful when an executive wants to communicate with other colleague from abroad. Other situation is when selecting an email service; it should be considering two options: use website or email client software. The first thing to understand Is the difference between website and email clients.

An email client is software installed on your computer that is used to access the email server your service uses. Web mail however is a server that you log into over the Internet. The first, called web mall has the advantage of being accessible from any computer connected to the Internet by using a password which allows you to send and receive emails and gives you access to your personal mailbox. This is convenient in a world where mobile computing is replacing desktop computers for people who are constantly on the move.

Gamma, Yahoo, and Hotmail are the biggest names In website services. The disadvantage of some web mail systems Is that there is a limit on how much email you can store at any given time. Sometimes old email is automatically purged from your file, resulting in the loss of important correspondence. Another alternative is email client software. Outlook, Incredibly, and Thunderbird are email clients that are Installed on the computer and you can store sent and received mail without a limit capacity.

These email clients are used more in business than personal computing. This is due to the security and archiving of the emails. However, some email client systems do not allow you to access your email from any computer on the Internet, requiring using your personal workstation t office. Email is useful In the International trade sphere because If we compare It to telephone communication, email doesn’t face the problem of trying to bridge the contact while he’s sleeping and you have the reply next morning so you don’t have to wait for days to get response.

Other benefit is that emails preserve a written record of proposals and negotiations which can eliminate misunderstandings and can help resolve disputes. It doesn’t cost the price of a stamp and it can be easily sent to numerous correspondents without the need to print the message on paper. Email can also be a very powerful marketing tool because you can build “address books” in which you can store the email addresses of customers and others who you wish to approach with information about your company.

USING THE WEB FOR INTERNATIONAL TRADE a) As a super-library and market research tool The internet has become the best largest library on which one can find any type of information whether about science, technology, countries, business, culture, weather some of this is used by executives for international business travels. Internet is not just a source of information. It is the BEST source of information for any field of study and research. But one must be careful to choose the appropriate correct information.

The growth of internet has revolutionized a lot of business and consumer behavior. One of the consequences is that it has been used as an alternative research tool for market research. Using of internet has made it less costly and more quickly and easily to get information than ever before. Internet also allows more detailed information to be collected than traditional surveys. Popular search engines include Google, Yahoo, Altavista, etc As a brief sample of the sources of trade-related data available on the internet, consider the following: * www. Obstructer. Com = Provides data on cultural dimensions for a number of countries. * www. Coed. Org = the organization for economic cooperation and development provides data on economic policies for its approximately 30 member countries. * wry. Remuneration. Com = the website of a company which provides reports on international trade and marketing. * saturated. Census. Gob = another source of US based information on export and import statistics. B) Lunching a website a key Marketing Channel

Creating a Website is critical for most exporters or importers of any size because this is a letter of presentation to the market and sometimes it has been observed as a poor website designs have shorted the market benefits. This means, it is the face that you show to the world and unattractive website project an unprofessional image. In most of the cases you could be helped in a professional web-master who is responsible for the design and management of the website. Frontage or Macromedia dream weaver but the right design for your page requires a professional.

There are even professionals that can help you to improve the appearance of your site but some of these designers are not able to develop a complex system of databases that most companies need. In order to take advantage in the market is always important to think about the potential for growth and evolution of the page. Many companies are wondering: Will your site require frequent or even daily updating? * Will your information be provided in several languages? * Will you ask visitors to fill out a form in order to obtain access to parts of your site?

Depending on the kind of business and also to maintain a balance in the market companies do. It is even possible to structure the site into a sales channel course that will have to hire experts in the field in order to maintain the quality of the site. We must take into account that many of the packages for transactional e-commerce are only available for domestic trade but there are instances that use the same basis for international trade. That’s why you have to take into consideration legal restrictions of each country and would be ideal to restrict sales caused by E-commerce to the domestic market or perhaps decrease their range. The internet and international trade transactions Now it is possible to use the internet to promote the consumption of products and services which will be used directly in the negotiations and transactions. There are even tools which help today electronic commerce: 1 . Faction: This application was launched by International Chamber of Commerce in 2002, and allows buyers and sellers to negotiate directly online and completing contracts for the international sale and purchase products. The application can be found in www. Antidemocratic. Com 2. PUC: The Supplement to the Uniform Customs and Practice for Documentary

Credits for Electronic Presentation (“elect”) supplements the Uniform Customs and Practice for Documentary Credits in order to accommodate presentation of electronic records alone or in combination with paper documents. 3. Trade Card: This is a service (ebb) for international payments, also an alternative to other international payment devices. The application can be found in www. Trademark. Com 4. Bolero: Provides a platform for document exchange process. With this software the process of documents related to commercial transactions has been reduced from 25 days to 24 hours.

The internet is an ingenious technological solution for many day-to-day problems, but it also has downsides. Since the internet is an unprotected system running over open networks, anyone can, with limited technical abilities, intercept and read the information being sent over the internet. Unless this information itself is protected, one should consider it to be about as secure as a postcard. Email, for instance, can confidentiality cannot be maintained.

Certain precautions are therefore necessary to manage the risk at the moment we are using the internet for serious business purposes. A) Confidentiality You want your e-mail and other internet communications to remain private between yourself and the person you are communicating with. There are many types of encryption software and services on the market, but for basic encryption one can also simply download “freeware” encryption software from sites such as Pretty Good Privacy (BGP). BGP was the first encryption program made freely available over the internet and its inventors were prosecuted in the USA for doing so.

The most used encryption method is called SSL (Secure Sockets Layer) b) Authentication and digital signatures: the role of public key infrastructure (PKZIP) Cryptography has another very important application. The internet presents another problem because there is not globally accepted mechanism for identifying users. There is no control over names used in email addresses. Many of these problems can be solved using a form of cryptography known as “public key cryptography’ in a technique called “public key structure” or “digital certificates “which identify a person and or company in a secure manner.

One very important use of digital certificates is the digital signature. The reason these certificates are also called “public key certificates” is that they are securely tied to a cryptographic “key’ known as the “public key’ which plays an important role in the process of verifying the signature of an email or other digitized data. This provides a level of authentication in electronic communications that is many times more reliable than techniques used in hipper-based trading methods.

The benefits of commercial use of digital signatures are not yet fully appreciated and his sector will likely continue to change and evolve in the coming years. However, certain other applications of PKZIP, such as “server certificates” are already very advanced and widely used. A server certificate identifies not a person, but a server on which websites and internet applications are run. In addition a server certificate enables you to establish a secure SSL connection with the computers of visitors so that personal data or credit card information can be securely communicated.

This is the most successful application of digital certificates today. C) Is an electronic agreement legally binding? Near the ass many national trade laws were based on written documents and sign electronic agreements were required. So that The United Nations created a legal instrument in 1996 known as “Model Law on Electronic Commerce” was the first legislative text to adopt the fundamental principles of non-discrimination, technological neutrality and functional equivalence that are widely regarded as the founding elements of modern electronic commerce law.

And The UN has also adopted The Model Law on Electronic Signatures (MALES) which favoring the use of any specific technology or process. This means in practice that legislation based on his Model Law may recognize both digital signatures based on cryptography (such as public key infrastructure – PKZIP) and electronic signatures using other technologies. Nowadays the technology is really used in commerce but if traders want to cross borders using electronic signatures they have to pay attention to legal issues. ) Trademarks and seal programmers In business there is a variety of services to communicate with website visitors, much of them with a certification on International Organization for Standardization (SO). This certificate is shown in the website and indicates that the company behind is omitted to operate applying rules of good business practice. These trademarks (from one of the most recognized providers) work with rigorous requirements to enhance the perceived trustworthiness of each website and e-commerce activity. ) Privacy issues The internet gives us the possibility to collect data of various in any part of the world. It is something that we could not do in the age of paper. Internet technologies can be used to create extensive profile on individuals by collecting digital traces left on different sites. The people who put their information on the web may not be enforceable sharing with business, enterprises or governmental entities. It needs to ensure customers trust how their personal information is handling; that’s why the companies have to demonstrate to visitor that your practice in data is responsible.

Many countries have laws to regulate the data that are collected, treated and shared. Privacy is a key component in a business strategy, which means, that is important to know what you do and do not do with the details of the consumer. That’s why for over a decade, Trust-ex.’s services and trademarks have enabled businesses to strive for the shiest standards in online privacy and customer satisfaction. F) The value of intellectual property The internet security is attended to protect the intellectual property, but sometimes the digitized assets are vulnerable when they are made available in internet.

Many proposed plans are continuously stated in progress in controlling the body of internet intellectual property. Protection of copyright, patent, trademarks and other concerns are well acted upon by the said body with the use of laws implemented for the better outcome. Violating others’ intellectual property rights is a criminal offence. The Internet in particular is a highly interactive environment that could either be beneficial for the publishers/ inventors or spare their works.

So as it is very important to preserve rights of concerned people on these occurring events. When a company creates a website, it will be at view of the world and become a global business. But it is important to understand the characters and behaviors of the potential customers. It means that knowing the different languages of customers a company will create a good website where the user can send comments or suggestions to improve its business and avoid unforeseen issues with a good website pullover.

ICC has issued guide lines that serve as basic global standard of ethical Internet marketing behavior since 1995. These guidelines, updated in 1998, are reproduced below: ICC Guidelines on Advertising and Marketing on the Internet Basic Principles Article 1 All advertising and marketing on the Internet should comply with the spirit as well as the letter of the principles set forth in the Chic’s Codes on Advertising Practice, Sales Promotion, Direct Marketing, Environmental Advertising, and Sponsorship as well as the ICC-ISOMER Code on Marketing and Social Research Practice.

All advertising and racketing should be legal, decent, honest and truthful. “Legal”, in the context of these guidelines, is presumed to mean that advertising and marketing messages should be legal in their country of origin. Advertising and marketing messages should be sensitive to issues of social responsibility and should in addition conform to generally accepted principles as regards ethical marketing.

Advertising and marketing messages should not be designed or transmitted in such a way as to impair overall public confidence in the Internet as a medium and marketplace. Rules Disclosure of identity Article 2 Advertisers and marketers of goods and services who post commercial messages via the Internet should always disclose their own identity and that of the relevant subsidiary, if applicable, in such a way that the user can contact the advertiser or marketer without difficulty.

Costs and responsibilities associated with electronic sales and marketing Article 3 Advertisers and marketers should clearly inform users of the cost of accessing a message or a service where the cost is higher than the basic telecommunications rate. Users should be provided with such notice of cost at the time they are about to access the message or service. This notice mechanism should allow users a reasonable amount of time, as set by the marketer or mandated by applicable law, to disconnect from the service without incurring the charge.

Respect for public groups Article 4 Advertisers and marketers should respect the role of particular electronic news groups, forums or bulletin boards as public meeting places which may have rules messages posted to public sites are appropriate: * when the forum or site receiving the message has a fundamentally commercial nature or activity; or * when the subject or theme of the bulletin board or news group is pertinent to the content of he advertising or marketing message; or * When the forum or site has otherwise implicitly or explicitly indicated consent to the receipt of advertising and marketing messages.

Users’ rights Article 5 1 . Collection and use of data Advertisers and marketers should disclose the purpose(s) for collecting and using personal data to users and should not use the data in a way incompatible with those purposes. Data files should be accurate, complete and kept up to date. 2. Data privacy Advertisers and marketers should take reasonable precautions to safeguard the security of their data files. 3. Disclosure of data The user should be given the opportunity to refuse the transfer of data to another advertiser or marketer. Personal data should not be disclosed when the user has objected except by authority of law.

Online mechanisms should be put in place to allow users to exercise their right to opt-out by electronic means. 4. Correction and blocking of data Advertisers and marketers should give the user the right to obtain data relating to him and, where appropriate, to have such data corrected, completed, or blocked. 5. Privacy policy statements Advertisers and marketers are encouraged to post their privacy policy statement on heir online site. When such privacy policy statements exist, they should be easy to find, easy to use and comprehensible. . Unsolicited commercial messages Advertisers and marketers should not send unsolicited commercial messages online to users who have indicated that they do not wish to receive such messages. Advertisers and marketers should make an online mechanism available to users by which the users can make known to the advertisers and marketers that they do not wish to receive future online solicitations. Unsolicited online advertising or marketing immemorial messages should be clearly identified as such and should identify the advertiser or marketer.

Advertising to children Article 6 Advertisers and marketers offering goods or services to children online should: * not exploit the natural credulity of children or the lack of experience of young people and should not strain their sense of loyalty; * not contain any content which might result in harm to children; * identify material intended only for adults; * encourage parents and/or guardians to participate in and/or supervise their children’s online activities; * encourage young children to obtain their parent’s ND/or guardian’s permission before the children provide information online, and make reasonable efforts to ensure that parental consent is given; * Provide information to parents and/or guardians about ways to protect their children’s Respect for the potential sensitivities of a global audience Article 7 Given the global reach of electronic networks, and the variety and diversity of possible recipients of electronic messages, advertisers and marketers should be especially sensitive regarding the possibility that a particular message might be perceived as pornographic, violent, racist or sexist.