A01 chaf6542 06 se fm indd

Question

Based on this article and your experiences, debate 

the statement: ‘Site localisation is essential for each 

country for an e‑commerce offering to be success‑

ful in that country.’

The implications of e-commerce for international B2B trading

Hamill and Gregory (1997) highlight the strategic implications of e-commerce for interna-

tional business-to-business trading. They note that there will be increasing standardisation 

of prices across borders as businesses become more aware of price differentials. Secondly, 

they predict that the importance of traditional intermediaries such as agents and distributors 

will be reduced by  Internet-  enabled direct marketing and sales.

Larger organisations typically already compete in the global marketplace, or have the finan-

cial resources to achieve this. But what about the smaller organisation? Most governments are 

encouraging SMEs to use electronic commerce to tap into the international market. Hamill and 

Gregory (1997) identify the barriers to SME internationalisation shown in Table 4.5. Complete 

Activity 4.5 to look at the actions that can be taken to overcome these barriers.

Source: The Henley Centre.

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