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International Barriers to E-commerce

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International Barriers to E-commerce
International Barriers to E-commerce
Aravind Alluri

Abstract
In the recent years, the internet has been known for an impressive evolution, having a major impact on all aspects of life esp., e-commerce (EC). This paper mainly explains the EC and also identifies the various international barriers to e-commerce and they can be evaluated for EC success.
Introduction
E-commerce is a combination of three different areas of study, namely technology, business and law/policy. EC is a kind of electronic medium for trading in goods and services. It is considered as exchanges between individuals/organizations channeled through technology, supported by electronic means. Worldwide business growth of the Internet and the rapid advances in Web technologies has affected new business opportunities and challenges. Also, due to globalization of business, all the firms have been forced to seek global economies, introducing local products to foreign markets and meet the variety of global customers.
International barriers to E-commerce
Global EC is the biggest player across the globe currently. Many countries and organizations are involved in the global e-commerce (GEC) to trade goods and services locally and globally. But still a significant number of countries are not able to participate in the GEC due to lack of infrastructure and advanced technologies.
1. Technical Barriers
The most significant barriers to the use and proliferation of GEC are perceived to be a technical nature. These technical issues can be categorized into five; Infrastructural Issues, Organizational –level issues, standard issues, issues related to the Internet and security concerns.
a. Infrastructure:
When operating across borders, the national infrastructures of participating countries have critical impacts on the feasibility of GEC. The use of the internet is partly restricted by insufficient bandwidth needed for multimedia transmissions. Also, it’s difficult to maintain the



References: Barriers of Global Electronic Commerce: A cross-country study of Hong Kong and Finland by Farahoomand, AF; Tuunainen, VK; Yee, LW Kapurubandara, M., & Lawson, R. (2006). Barriers to adopting ICT and e-commerce with SMEs in developing countries: an exploratory study in Sri Lanka.

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