The Internet and International Business Essay is an interesting topic- discussing an area of business that will probably be around for many years and possibly centuries to come. Since its earliest days, the Internet has been a means of communication, an essential tool in almost instant communication.
People can “talk” to others by sending email messages, at the speed of pressing the send key. This information is instantly transmitted to the receiver, who can in turn, reply quickly. Today, one can even literally talk to someone else, just as if he/she were actually phoning someone over traditional phone lines.
While the quality is not as clear as regular lines, the cost is considerably less.
The idea of less expensive communication is one that is deeply entrenched in international trade. If someone in China has to call a company in the U.S., the cost would be outrageous. Plus, one must consider the time differences, so as not to wake an American at perhaps 3 a.
m. With the use of email, the Chinese businessman can send his message instantaneously, and it will be ready for the American businessman to receive and read when he/she arrives at the office in the morning.
In addition to regular email, pagers can be programmed to receive important emails, or notices of emails in one’s mailbox. Cell phones can also be programmed to receive email messages, and also notification of pending emails.
Inventories can also be depicted, and quantities listed. With the proper programming, once an item is ordered, it is subtracted from the inventory, thus showing the proper amount that is actually available for sale.
The Internet and international business is an interesting topic- discussing an area of business that will probably be around for many years and possibly centuries to come. Since its earliest days, the Internet has been a means of communication, an essential tool in almost instant communication.
Websites can also be set up for potential buyers. On the site, such things as contacts can be listed. Phone numbers, addresses, and email addresses can be shown, as well as fax numbers, for those who do not feel comfortable with new technology.
Orders can actually be produced right over the Internet.
For someone in England who might want to buy a comic book from a site in the United Sates, the Englishman has to check to see if the book is available, and if so, he/she can place the order right through the site. Any reputable site will offer secure processing of a credit card in payment for the order, and also take such details as name and address for the item to be shipped to. For those who are not comfortable with giving out their card numbers over the Internet, companies usually provide fax and phone numbers to call to have the order processed.
The idea of inventories being constantly updated is of great benefit to companies that may be short of cash. The notion of “just in time” inventory can be accomplished through use of the Internet. If a company in Canada needs materials to fulfill an order for a customer, it can check the website of a Massachusetts company, and if the items are available, it can order the materials right on the spot.
This means that the Canadian company does not have to tie up its money in excess inventory, which can be very expensive to store.
In a recent article from www.chematch.com, the first online option contract was transacted on www.chematch.com.
Chematch.com is a leading global Internet exchange for the selling and purchasing of bulk commodity chemicals. This first option online trade involved mixed xylenes, used in the production of polyester products.
In this transaction, the Chematch.com member is able to purchase the right to sell or buy product for delivery at a predetermined date and at a defined price. If the option to buy is exercised, the product will be delivered.
This differs from a financial option, where physical delivery is not a part to the agreement.
Chematch.com is building its base of customers in Pan-American countries, as well as in Asia and Latin America. It also brokers deals in North America.
In an article in The Worcester Telegram, Thursday, June 22, 2000, the story .