E-Commerce in Developing Countries Research Paper

E-Commerce in Developing Countries - Research Paper Example Different sectors including transportation, industries, technology, and entertainment greatly depend on internet applications. Various studies indicate that internet provides extensive employment opportunities to large number of people. Furthermore, internet has become the largest database in the universe. The most fascinating feature of the internet is that it acts as a platform for online trade or E-commerce. Today, many of the multinational corporations generate notable percent of their sales revenues through online business. II. Issues for developing countries a. Info-structure It seems that information structures used to build a website often become a constraint to E-commerce growth in developing countries. Sequences, hierarchies, and webs are the major information structures deployed to develop a website; and structures like hierarchies and webs are best ways to build and manage information databases effectively (Fresh Thinking Business, n.d). However, database management using such models requires in depth knowledge and greater efficiency. Obviously, developing countries may not have much fund to spend on infra-structure development as they need to address a series of other operational fund requirements. Moreover, those counties may lack adequate expertise to promote information structure development and this situation would adversely affect their internet usage practices. Experts reflect that many of the developing countries are still unaware of the necessity of structure development as they do not consider internet as a major contributor to their overall economic development. b. Legal and financial framework Evidences suggest that a nation’s legal and financial framework can have a greater impact on its E-commerce practices. Some developing countries believe that unrestricted internet access may negatively affect their national security and hence they ban some specific websites. To illustrate, China banned the social networking site facebook rec ently to maintain social peace and harmony. However, this move has affected the country’s E-commerce sector to a great extent since facebook was an important channel of business promotion in China. Nowadays, more countries are planning to ban some highly trafficked websites in order to avoid threats to national security. Such practices are more likely to impede online business growth since many of those websites provide people with a common platform to share their views and opinions regarding a particular product or service. As we mentioned earlier, developing countries with an unstable financial background cannot raise sufficient funds to foster IT development, which is essential to intensify E-commerce growth. c. Human resource Undoubtedly, human resource plays a pivotal role in determining E-commerce growth in developing countries. Although online business sector needs less number of employees as compared to traditional business settings, potential workforce is necessary f or E-commerce promotion. It seems that developing countries like India and China are blessed with potential human capital resources and hence they can employ skilled people and thereby generate huge revenues from online sales. In contrast, some other countries do not have adequate human resources and hence those countries employ the available workforce on industrial sectors. Obviously, this situation would impede the growth of E-commerce sector. It is also noted that