Chapter 1- Introduction to Electronic Commerce

1. Describe three factors that would cause a company to continue doing business in tralatitious ways and evacuate electronic commerce. * Traditional commerce is a better way to merchandise items or services when personal selling expertnesss are a factor, as in commercial real estate sales or when the consideration of the products is difficult to determine without making a personal inspection, as in the purchases of high-fashion clothing, antiques or perishable food items. 2.Figure 1-5 lists roommate-matching services as a type of business that is well-suited to a combination of electronic and traditional commerce. In one paragraph, describe the elements of this service that would be best handled using traditional commerce and condone why. * Customers are generally concerned about life style and personality factors. As a result, they would want to meet any potentiality roommate. 3. Choose one major deflexion between the first wave and the second wave of electronic commerce.Wr ite a paragraph that describes this difference to a person who is not familiar with either business or Internet technologies. * A major difference is the increase in wideband connections and improved hardware developments. This allows more businesses around the world to communicate with all(prenominal) other. 4. What are transaction costs and why are they serious? * motion costs are the total of all costs that a vendee and seller incur as they gather in course of studyation and negotiate a purchase-and-sale transaction.Reasons for being important can vary. 5. Provide one example of how electronic commerce could help change an industrys economic mental synthesis from a hierarchy to a network. * When transaction costs were high, businesspeople would form organizations to replace market-negotiated transactions. In a network economic structure, companies coordinate their strategies, resources and skill sets by forming long-term relationships with other companies and individuals bas ed on shared purposes, called strategic alliances or strategic partnerships. 6.How might managers use bring up analysis to hear new applications for electronic commerce in their strategic business units? * SWOT is the acronym for Strengths, Weaknesses, Opportunities, and Threats. By using this, the analyst first looks into the business unit to delineate its strengths and weaknesses. Then the analyst reviews the environment in which the business unit operates and identifies opportunities presented by that environment and the threats posed by that environment. 7. In about 200 words, explain the difference between oral communication comment and language localization. Language translation is the process of restating some text written in one language in a different language. In other words, to translate is bear witness some original text, written in what is called the source language, and to write a corresponding text in different language, called the target language, with the goal of preserving the odor and meaning of the original text. * Language localization is a translation that considers bigeminal elements of the local environment, such as business and cultural practices, in extension to local dialect variations in the language.The cultural element is very important since it can affectand sometimes completely changethe users interpretation of text 8. In a paragraph, describe the advantages of a flat-rate telecommunications admission charge system for countries that want to encourage electronic commerce. * In the United States, telecommunications companies dupe long sold local telephone service as a flat-rate vex system, in which the consumer or business pays one monthly topple for unlimited telephone line usage.Activists in European countries argued that flat-rate access was a key to the success of electronic commerce in the United States. Although umteen factors contributed to the rapid rise of U. S. electronic commerce, many industry analysts ag ree that flat-rate access was one of the most important. As more European telecommunications providers began to offer flat-rate access, electronic commerce in those countries increased dramatically.