The basic Internet infrastructure between two countries
Australia and Laos have different internet infrastructures. Australia has a commercial internet infrastructure which is served by several internet service providers. On the other hand, Laos has strict policies that regulate internet usage, and the government censors web content before citizens access it. As a result, the country has one of the lowest internet penetration rates in the world (Banerjee, 2008, p. 67).
Australia’s internet service providers use fiber optics to get bandwidth from different backbone service providers in the U.S. such as Verizon, AT & T, and Century Link. On the other hand, Laos mainly relies on satellite connectivity and the few licensed ISP’s purchase bandwidth from Verizon and AT&T backbone service providers.
Laos’s internet infrastructure is poorly developed, and it is less commercialized compared to the U.S.’s internet infrastructure, which is highly commercialized. On the other hand, even though most users rely on telecommunication giant, Telstra to provide them with internet services, Australia’s internet infrastructure is well developed and satisfies most users’ needs.
It is estimated that the number of internet users in Laos is about 10% of the population while in Australia close to 80% of the population has access to the internet (Beattie, 2013, p. 91). In the US, more than 85% of the population has access to the internet. The U.S. plays a major role in the global internet. There are many internet based firms in the U.S. which have large numbers of customers in different parts of the world.
Summary
Internet penetration rates in Laos are very low compared to Australia and other developed countries. These differences show that Laos’s economic, social, and political policies are restrictive, and they cannot attract foreign firms to invest in the country. However, Australia has high-speed broadband infrastructure because major ISP’s in the country use fiber optic networks to transport bandwidth from various backbone service providers.
As a result, internet penetration rates the country has high internet penetration rates, which makes it one of the most attractive destinations for foreign direct investment globally. The U.S. has been able to sustain high levels of economic prosperity through its open internet policies.
The country has some of the highest internet penetration rates in the world, and this has made it the most innovative economy in the world. Since mass usage of internet technologies originated from the U.S., the country has managed to set positive trends which are emulated by other countries in the world.
eCommerce across international borders
Many companies across the world are using electronic commerce through the internet to improve their market performance and to increase their profits. As a result, the number of business firms which use e-commerce for both local and international transactions has gone up by a large margin in the last fifteen years. More firms are using the internet to market their products, to make and receive payments, and to engage with customers in different markets (Tofanelli, 2009, p. 76).
Repudiation occurs when a business firm or an individual refuses to pay money for commodities received from another business entity (Prins, 2002). Many firms that engage in international business use legal means to protect themselves from this practice. Some firms require their customers to pay first before they are supplied with commodities while other firms prefer to use trusted international intermediaries to sell goods to their customers.
Volatile exchange rates hurt online purchases because they increase prices of commodities resulting in low sales volumes. Stable exchange rates encourage more business firms and customers to transact through the internet, and this increases profit margins. High shipping charges increase prices of commodities sold to customers in various global markets, thereby resulting in low sales volumes for firms that transact online (Miller & Cross, 2012, p. 112).
On the flip side, low shipping charges reduce prices of commodities sold, thereby encouraging more customers to purchase different products through the internet. As a result, exchange rates and shipping charges determine the prices of goods sold in different markets through online platforms.
Summary
E-Commerce has become part of international business because many firms and consumers are taking advantage of various opportunities that exist on the internet to achieve their goals. Business firms have realized that Internet-based tools allow them to reduce costs so that they can engage more effectively with their customers. They use online payment systems to sell their commodities and services to different customers in various locations across the globe.
As a result, this has enabled more firms to register high-profit margins from their operations by using efficient technologies to improve their performance. Also, some business firms use online networks to find out customer service issues that their customers experience after using their products.
However, some firms are discouraged from using e-commerce because of negative practices by some buyers who fail to pay for goods received. This practice has eroded the gains that have been achieved from using the internet for various commercial purposes.
References
Banerjee, I. (2008). The internet and governance in Asia: A critical reader. New Delhi, India: AMIC.
Beattie, S. (2013). Community, space and online censorship: Regulating pornotopia. New York, NY: Ashgate Publishing.
Miller, R., & Cross, F. (2012). The legal environment today: Business in its ethical, regulatory, e-commerce, and global setting. Mason, OH: Cengage Learning.
Prins, C. (2002). Trust in electronic commerce: The role of trust from a legal, an organizational, and a technical point of view. London, UK: Kluwer Law International.
Tofanelli, D. (2009). Communication in a business setting. New York, NY: Author house.