Question

2. What kind of policy problems does the global nature of e-commerce create?

Answer 1

Global e-commerce is basically selling products or providing services globally by a company. This company can originate from a specific country and can expand its services all over the world. The selling and servicing is mainly done using an online platform.

Now since the company originates in a country tries to expand business in other countries, several rules or policies have to be followed by them. Violating them can lead to the company not able to service in that country. The policy problems that can be generated by the global nature of e-commerce are:

1. Selling products in other countries or providing services need rules and regulations set by the country, which must be followed by the company. Violating these can result in revoking the authentication to provide service in that country.

2. Different countries have different import and export tax charges as well as import-export regulations which has to be followed by the company. Violating any of these policies may result in ban from further service in that country.

3. Implementation of an online service requires accurate online payment is one the key factor. Different countries use different currencies, which may not match with the currency of the originating country. In these cases, currency conversion is required, which also required some rules and regulations.

4. If a company wants to sell products in another country, customer service has to be established also. For which different types of policy has to be followed. The company has to register some mobile numbers, emails to provide service in that country.

These are the main policy problems that the global nature of e-commerce can create.