Deck 18: Internet and Global E-Commerce

Question 1

Under a tentative agreement negotiated by the U.S. Department of Commerce, U.S. firms can

A) subject themselves to the data-protection authority in one of the EU nations.
B) show that they are subject to similar U.S. privacy laws, such as those covering credit applications or videocassette/DVD rentals.
C) agree to refer privacy disputes to a panel of European regulators.
D) all of the above

Answer 1

D

Question 2

As in other realms of IB, finding the right balance between globalization and ___________ has proven difficult.

A) socialization
B) localization
C) nationalization
D) forestation

Answer 2

B

Question 3

Data collection is permitted when

A) the subject has given consent.
B) the data is required by law or needed to practice the subject's vital interests.
C) the data is needed for law-enforcement purposes.
D) all of the above

Answer 3

D

Question 4

McConneil International developed a classification of e-readiness factors that include________________.

A) connectivity
B) e-leadership
C) human capital and e-business climate
D) all of the above

Question 5

The main growth of global e-commerce, as in domestic markets has been__________?

A) C2C
B) B2C
C) B2B
D) C2A

Question 6

B2B transactions involve______________.

A) inter-firm transactions
B) transactions between firms and individuals
C) individual transactions
D) online transactions

Question 7

Which of the following are not e-commerce transactions?

A) B2B
B) B2C
C) C2C
D) B2A

Question 8

In the EU, value-added taxes (VAT) represent a minor portion of government revenues.

Question 9

Under a tentative agreement negotiated by the U.S. Department of Commerce, U.S. firms can agree to refer privacy disputes to a panel of European regulators.

Question 10

Under a tentative agreement negotiated by the U.S. Department of Commerce, U.S. firms can subject themselves to the data-protection authority in one of the EU nations.

Question 11

The American laws are based on "safe harbor" principles requiring that a company seek explicit agreement before transferring personal data to another company.

Question 12

What is the Swedish translation for "Getgift.com"?

A) go get poison for goats
B) go milk the cows
C) go get poison for horses
D) go milk the horses

Question 13

Jane posted an auction on eBay (the online auction house) and sold her teapot to Angela for $8. This is an example of which e-commerce transaction?

A) B2B
B) B2C
C) C2C
D) none of the above

Question 14

Harry purchased office stationery for his small business through an online business. This is an example of which e-commerce transaction?

A) B2B
B) B2C
C) C2C
D) none of the above

Question 15

E-commerce transactions are

A) business-to-business (B2B)
B) business-to-customer (B2C)
C) customer-to-customer (C2C)
D) all of the above

Question 16

The Economist Intelligence Unit (EIU) calculates e-readiness in terms which of the following?

A) connectivity and technology infrastructure
B) business environment, consumer and business adoption
C) social and cultural environment, and supporting e-services
D) all of the above

Question 17

________________ calculates e-readiness in terms of connectivity and technology infrastructure, business environment, consumer and business adoption, social and cultural environment, and supporting e-services.

A) Economist Intelligence Unit (EIU)
B) European Intelligence Unit
C) Electronic Index Unit
D) None of the above

Question 18

___________________are an example of one of the challenges to global e-commerce.

A) Localization challenges
B) Standardization forces
C) Taxation issues
D) All of the above

Question 19

In emerging economies, wide variations of e-commerce readiness are apparent. For example, Korea and Taiwan are among the most prepared economies, though, in general, Asian economies are hampered by____________________.

A) credit card usage
B) data security
C) acceptance of electronic signatures
D) lack of computer users

Question 20

Which of the following is an example of why a "would be" customer might be reluctant to complete an online purchase?

A) fear that the information they provide (credit card number, phone number, home address) might be used inappropriately
B) fear that the information they provide (credit card number, phone number, home address) might be given to vendors
C) fear that information they don't supply will be used inappropriately (for example, site visit patterns)
D) all of the above

Question 21

_________________is an example of an essential factor of internet and e-commerce penetration.

A) Secure servers
B) Confidential personal information
C) Confidential transactions
D) All of the above

Question 22

An example of the benefits of a localized web site would be__________________.

A) higher revenues
B) wider global reach
C) higher media invisibility
D) all of the above

Question 23

Among developing nations, China has four times as many telephone lines and 18 times as many cellular telephones as India. This is a comparison between China and India's__________________.

A) connectivity
B) internet growth
C) e-commerce
D) digital divide

Question 24

In addition to demographic disparities, cultural "faux pas" are as uncommon in e-commerce as in traditional trade.

Question 25

Cross-border e-commerce has the capability to reduce but not eliminate friction in international business transactions.

Question 26

The impact of e-commerce extends to other realms. One example of this is the ease of determining the origin of a product or a service, implications for customs, and tariffs and taxation.

Question 27

A good example of how American companies can increase their share in European markets is compliance with European privacy laws.

Question 28

One example of the United States' ability to account for a larger share of the e-commerce market is the variety of delivery services.

Question 29

Lowered cost of dial-up internet connections is a prime example of how a developing country can increase its share of internet usage.

Question 30

The Naushad Trading Company is one example of how e-commerce can produce a slight increase in company growth.

Question 31

As in other realms of IB, finding the right balance between globalization and localization has proven easy.

Question 32

All three types of e-commerce transactions only occur globally.

Question 33

E-commerce is the conduct of transactions to buy, sell, distribute or deliver goods and services over the internet.

Question 34

Yahoo found out that its US site posted more traffic from China than its Chinese site.

Question 35

European laws are based on "safe labor" principles requiring that a company seek explicit agreement before transferring personal data to another company.

Question 36

The "digital divide" exists both domestically and globally. One example of this is the difference in number of Internet users in the U.S. versus India.

Question 37

A study found that firms with localized web sites abroad were distinctly different from those that were not. Examples of the differences are that localized web sites had higher revenues, an equal amount of media visibility, wider global reach, and more alliances.

Question 38

The availability of secure servers and transcription technologies are examples of how the confidentiality of communications and transactions are a key factor in internet and e-commerce penetration.

Question 39

For locating downstream activities: building customer relationships and servicing global customers requires physical co-location with them. This is an example of efficiency seekers.

Question 40

Internet has made it easy to determine the origin of a product or a service, with concomitant implications for customs, tariffs, and taxation.

Question 41

As the result of internet and e-commerce, the number of intermediaries has indeed been reduced for digitalized products as well as services such as brokerage, retail, and auctions.

Question 42

Smaller firms, selling physical goods have a major challenge in regards to facing logistics barriers.

Question 43

The Economist Intelligence Unit (EIU) calculates e-readiness in terms of six criteria: connectivity and technology infrastructure, business environment, consumer and business adoption, social and cultural environment, and supporting e-services.

Question 44

Internet usage level, which is dramatically lower in poorer countries, is a crucial (though not the only) component of e-commerce readiness.

Question 45

Government's e-readiness, one indicator of infrastructure activity, is much lower in developed nations.

Question 46

A government that is prepared to handle electronic communications helps to create more users who are tuned to internet-provided information and who are comfortable with electronic transactions.

Question 47

E-readiness refers to the degree to which a country has developed the infrastructure necessary to facilitate electronic transactions, which are at the heart of e-commerce.

Question 48

A prime example of companies not being able to fill overseas orders is the system's inability to register international addresses correctly.

Question 49

E-commerce has been the fastest growing segment of the internet economy.