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Literature Review

Essay Topic:

With the growth of global market and the international labor division, international trade has been rapidly increased for hundreds of years. Meanwhile, since the middle of the 20th century, e-commerce appeared on the scene and has quickly grown. E- commerce is changing the mode of international business in a new way, impacting the cost, value and efficiency of trade (He, L’, Wu, Jiang, 2011, p.

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175). It has more and more influence on international trade that many scholars did specific research on this issue.

This review covers 13 academic and up-to-date resources which will be ompared and contrast in terms of the definition of e-commerce, the previous studies of how does the e-commerce have an impact on international trade, and particular views of 82B e-commerce. E-commerce can be defined as all kinds of information exchange or commercial/managing transaction that occur between companies via a network which is internet-based and computer-mediated (Moodley, 2001, p. 91). It is as the use of the Internet to conduct business transactions countrywide or worldwide.

Therefore, e-commerce has come to undertake a considerable role: as a ore valid and competent mediator and collector of information (Terziaa, 2011, p. 746). Besides, e-commerce also includes activities such as internal processes that enterprises use to support their planning, hiring, selling, buying, and businesses trading with other businesses. According to Schneider (2011, P. 4), the definition of e- commerce is “used in its broadest sense” and includes variety of economic actions which have access to Internet technologies.

This technologies not only include the Internet, but also other technologies such as the wireless transmissions of mobile hone networks and the World Wide Web. Schneider argues that most people interchangeable using the term e-commerce and e-business (2011, p. 4). Similarly, Jelassi and Enders (2005, p. 4) point out that people always use electronic business when they are talking about electronic commerce. Different from Schneider, Jelassi and Enders give a clear definition between these two words.

They state e-commerce helps selling products, doing businesses and services much easier through the Internet or any other telecommunications network (2005, p. 4). In other words, this overs the electronic trading of material and digital merchandise, usually containing all the steps of trade such as online ordering, online marketing, e-payment and online after-sales services (2005, p. 4). Jelassi and Enders define the term e-business as the use of electronic methods to run an establishment’s business. Accordingly, e- commerce is more specific than e-business (2005, p. ). Some scholars detected that international trade would be affected by e-commerce at the end of the 20st century. In this period, some e-commerce researches were focused on the Internet erspective, for example Klein and Quelch (1996, p. 60-75) argue that big and small firms are both offered different opportunities and challenges by the Internet all over the world. Besides, they review the benefits of a local area network for large companies, the influence on development of new product and global markets, and the needs for international cooperation.

After this period, there were some changes taking place on e-commerce with the development of new technology. Scholars commerce, such as Fariselli, Oughton, Picory, et al. (1999, p. 261-267) perceive three ssues related to the Internet which are e-commerce, small and medium sized companies’ positions and economic globalization. The influence of e-commerce to global trade was proved via researches by many scholars in recent years. An effective impact of the e-commerce on trade was found by Freund, Weinhold (2002, p. 36-240) and Freund, Weinhold (2004, p. 171-189) that according to the data, the raising in the increase of web hosts directly give rise to the raising in trade increase in a country recently.

Moodley (2001, p. 89-104) use the data to detect the relationship between ormation of communication on Internet and global markets, while Clarke, Wallsten (2006, p. 465-484) and Clarke (2008, p. 16-37) also deem that in developing countries, the application of Internet does influence firms’ export trade; BoJnec, Ferto (2009, p. 24-132) focus on how does the number of Internet users effect on the manufacturing export increase among Organization for Economic Co-operation and Development countries, explore that manufacturing export is stimulated by the Internet, their viewpoint was supported with the food industry trade evidence in eveloped Organization for Economic Co-operation and Development countries (He, L’, Wu, Jiang, 2011, p. 175). According to Moodleys research (2001, p. 9-104), in developed countries, 82B e-commerce capacitates buyers come close to information about developing country sellers much easier; it also helps developing country providers to get more information of developed countries’ buyer requirements. However, although 82B e-commerce has an obvious impact on information communication in developing countries, it does not offer greater rewards to enterprises than other channels for running business (Humphrey, Mansell, Par© and Schmitz, 2003, p. 35).

Producer enterprises in underdeveloped nations continue to depend on their traditional trade channels and agents. Even though the Internet probably shorten the distance among companies worldwide, geographical separation still matters. Therefore, e-commerce can only decrease international trade costs minimally. In conclusion, it has been demonstrated that some similar and opposite opinions have been discussed in terms of different aspects of e-commerce impact on international trade. More authors are believe that e-commerce is different from e- business.

Generally, most scholars agree that e-commerce does have influence on international trade in many ways, such as decreasing transaction costs, making international business more expedient and so on. The benefit on information communication is especially obvious on 82B e-commerce. However, it may be marginally decrease the international trade costs.