Data Bases • Custom Term Papers • Free Term Papers • Free Research Papers • Free Essays • Free Book Reports • Plagiarism? Links • Top 100 Term Paper Sites • Top 25 Essay Sites • Top 50 Essay Sites • Search 97,000 Papers @ DirectEssays.com • Search 101,000 Papers @ ExampleEssays.com • Search 90,000 Papers @ MegaEssays.com Free Essays • Term Paper Sites • Chuck III's Free Essays • Free College Essays • TermPaperSites.com • My Term Papers • Get Free Essays • Essay World • Planet Papers	Search Lots of Essays Back to Subjects - Business The Internet and International Business The Internet and International Business The Internet and international business is an interesting topic- discussing an area of business that will probably be around for many years and possibly centuries to come. Since its earliest days, the Internet has been a means of communication, an essential tool in almost instant communication. People can "talk" to others by sending email messages, at the speed of pressing the send key. This information is instantly transmitted to the receiver, who can in turn, reply quickly. Today, one can even literally talk to someone else, just as if he/she were actually phoning someone over traditional phone lines. While the quality is not as clear as regular lines, the cost is considerably less. The idea of less expensive communication is one that is deeply entrenched in international trade. If someone in China has to call a company in the U.S., the cost would be outrageous. Plus, one must consider the time differences, so as not to wake an American at perhaps 3 a.m. With the use of email, the Chinese businessman can send his message instantaneously, and it will be ready for the American businessman to receive and read when he/she arrives at the office in the morning. In addition to regular email, pagers can be programmed to receive important emails, or notices of emails in one's mailbox. Cell phones can also be programmed to receive email messages, and also notification of pending emails. Inventories can also be depicted, and quantities listed. With the proper programming, once an item is ordered, it is subtracted from the inventory, thus showing the proper amount that is actually available for sale. The Internet and international business is an interesting topic- discussing an area of business that will probably be around for many years and possibly centuries to come. Since its earliest days, the Internet has been a means of communication, an essential tool in almost instant communication. Websites can also be set up for potential buyers. On the site, such things as contacts can be listed. Phone numbers, addresses, and email addresses can be shown, as well as fax numbers, for those who do not feel comfortable with new technology. Orders can actually be produced right over the Internet. For someone in England who might want to buy a comic book from a site in the United Sates, the Englishman has to check to see if the book is available, and if so, he/she can place the order right through the site. Any reputable site will offer secure processing of a credit card in payment for the order, and also take such details as name and address for the item to be shipped to. For those who are not comfortable with giving out their card numbers over the Internet, companies usually provide fax and phone numbers to call to have the order processed. The idea of inventories being constantly updated is of great benefit to companies that may be short of cash. The notion of "just in time" inventory can be accomplished through use of the Internet. If a company in Canada needs materials to fulfill an order for a customer, it can check the website of a Massachusetts company, and if the items are available, it can order the materials right on the spot. This means that the Canadian company does not have to tie up its money in excess inventory, which can be very expensive to store. In a recent article from www.chematch.com, the first online option contract was transacted on www.chematch.com. Chematch.com is a leading global Internet exchange for the selling and purchasing of bulk commodity chemicals. This first option online trade involved mixed xylenes, used in the production of polyester products. In this transaction, the Chematch.com member is able to purchase the right to sell or buy product for delivery at a predetermined date and at a defined price. If the option to buy is exercised, the product will be delivered. This differs from a financial option, where physical delivery is not a part to the agreement. Chematch.com is building its base of customers in Pan-American countries, as well as in Asia and Latin America. It also brokers deals in North America. In an article in The Worcester Telegram, Thursday, June 22, 2000, the story is told of a small rural merchant in Illinois. The owner, Doug Young, sells hats, but not the usual variety. He offers high stylish hats that may not be available anywhere else, such as fedoras and military hats that may have been worn by German soldiers in In the story, Doug tells of a man in Norway who could no longer find a high quality felt hat. Doug found the type he wanted and the deal was transacted over the Internet. The name of the website is www.noggintops.com. His actual location of products is an old, long since closed country store, but his marketplace is the world. Through use of a virtual marketplace, Doug can sell to anyone, anywhere in the world. With the use of credit card technology to pay for purchases on the Internet, both buyers and sellers do not have to worry about any exchange rate conversions. The issuer of the credit card, such as Visa and MasterCard, takes care of all of the financial adjustments in currency. The use of a credit card also benefits the buyer as a form of protection against shoddy merchants or goods. If the buyer is not satisfied, he/she has the credit card company to fight for him/her. Credit cards protect the seller in that they do not have to accept personal checks, which may be no good or may take a long time to clear, and also he/she does not have to worry about telling the customer the current exchange rates. Any company that does worldwide business on the Internet must list the costs of their goods in many denominations. Although the actual rates for exchange may vary, an American business must list the cost of its products in francs or the Euro if it intends to do business with Germany. In order for businesses to go global, many things must be considered. The infrastructure of a country is very important. If a company in the U.S. or Canada wants to sell goods in Africa, and the countries they target have little or no phone line or cellular capabilities, the effort will not be successful. The areas a company wants to sell in must be studied in depth. According to a study done by Ernst & Young, the following are demographics of online buyers: US Canada Australia UK Italy France Age 41.0 41.7 37.9 36.7 36.7 35.3 Income 59k 50.3k 62.3k 64.6k 36.3k 48.3k (k=1000 US dollars) (Male/female) 50/50 63/38 59/41 69/31 85/15 76/24 From this information, it appears that the above-average income person is more likely to buy online. Of course, this is evident because these are the people who are more likely to have Internet access, and the means to purchase online connectivity. They are also more educated, which make sense because these people are more inclined to be regular computer users. Also, the average ages center around the 40 year old mark, an age where people are more open to technology and new things. Advertising is a major part of international online marketing. According to a chart in Business 2.0, the following have been tallied with regards to how global consumers access sites: US Canada Australia UK Italy France Online buyers also have many concerns about shopping online. From the same article mentioned above, the following were tallied: US Canada Australia UK Italy France (All numbers are expressed as percentages) Based on these concerns, retailers in the international marketplace have their work cut out for them. But through proper education of consumers, and the ever-expanding growth of the infrastructure in many countries, the future seems to be leaning heavily towards using the Internet for many needs. Bibliography: Bibliography The Worcester Telegram and Gazette, Thursday, June 22, 2000 Business 2.0, May 2000 Business Week, various issues Time Digital: Your Personal Guide to Technology, June 2000 Interactive Week, June 12, 2000 Various Websites Word Count: 1479
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