| Summary: | M.Comm. === This study aims to provide information on the macroeconomic impact of electronic commerce and its effects on business, consumer and government sectors. Electronic commerce as a new phenomenon has the potential to bring substantial benefits to government, businesses and consumers. Developed countries such as the United States, Canada and the United Kingdom have had an experience of electronic commerce for the last ten years. Electronic commerce is the catchall phrase for many advances in technology centred on the Internet, and heralds fundamental changes for the world economy. The expansion of the Internet globally has made it an ideal means to conduct commercial transactions. The Internet is being used more and more to advertise and sell goods and service globally. Electronic commerce is an instrument that is handy to globalise trade among countries and nations. It has become highly possible to conduct business transactions with all parts of the world that have access to Internet, without being physically there. The transactions take place technologically. The use of Internet and the World Wide Web is creating a revolution in the manner in which business transactions are conducted. The increase in the number of users is taking place at a rapid pace, especially in the developed economies. It is estimated that there are now more than 150 million users, and the figure increases by more than 50 000 on a daily basis (UNCTAD, 1999:55). More than half of the current user population is located in the United States of America, but the geographical spread is fast diversifying. Even developing countries are now having an access to the Internet. Revenue attributed to electronic commerce is still relatively small though it is projected to grow over the years. Empirical evidence about the use of electronic commerce is largely confined to developed countries, though developing countries are now using it. It shows that in several sectors, which include financial services, tourism, books, music and entertainment industry, the digital revolution is spreading rapidly. This also shows that many aspects of governments' dealings with communities, international project management and consultancy work are increasingly being facilitated by electronic operations. The United States has developed the Global Information Infrastructure, which is seen as a global marketplace, to enable it to reach every comer of the globe on trade. This development is based on the following principles:- • Private sector leadership The private sector is leading the development of electronic commerce and the Internet, though the government assisted with bulk financing. Innovation, expanded services, broader participation, and lower prices will arise in a market-driven arena, not in an environment that operates as a regulated industry. The American government is encouraging industry self-regulation whenever appropriate, and supports all initiatives and efforts of the private sector to develop mechanisms to facilitate the successful operation of the Internet and electronic commerce. • Government to avoid undue restrictions on electronic commerce The government has not intervened when business transactions on goods and services are effected across the Internet. The government is of the view that intervention and unnecessary regulation of commercial activities will distort the development of an electronic marketplace by decreasing supply and raising the cost of goods and services for consumers globally. The United States government has further undertaken to refrain from imposing new regulations, bureaucratic procedures, or taxes and tariffs on commercial activities that take place via the Internet. • Minimum government intervention when necessary The government will intervene to support and enforce a predictable, consistent and simple legal environment for commerce. In some areas it will be necessary for government to play a minimal role where consumers have to be protected.
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