5 Written questions
5 Matching questions
- Currency Conversion
- Distribution Channels
- Permanent Establishment (PE)
- a physical location of an organization or business for taxation purposes.
- b the act of becoming worldwide in scope or application
- c Companies that assist consumers by giving them additional cost or product information, understanding local markets, carrying a broader product line, or carrying multiple product categories. Similar to the "middleman," they are a business person such as an agent, broker, or sales representative, who negotiates transactions between a business and a consumer.
- d The process of using a financial formula (incorporating current exchange rates) to convert a given amount of one currency to its equivalent value in another currency.
- e This refers to the movement of products or services from the producer to the consumer.
5 Multiple choice questions
- Activities including selecting the merchandise, checking to make sure the order has been filled correctly, packing, shipping, and billing for the merchandise. This is one of the strengths of e-Commerce as it has significantly decreased the amount of time in which this process occurs.
- The use of sophisticated phone systems to conduct meetings with multiple persons at remote locations.
- A company that serves as an intermediary for businesses to provide online payment options to customers. Payment gateways handle the technical steps involved in allowing customers to pay for purchases online. Cybercash and ExciteStores are examples.
- The process of managing product inventory where the information is updated instantaneously each time there is an increase or decrease to the stock-in-hand. This is the type of inventory management that is necessary to e-Commerce businesses as it enables the seller to provide customers with product availability information that is current.
- the ability of a government to exert control over a person or corporation
5 True/False questions
E-Cash → Digital cash that is drawn directly from the consumer's bank account and stored in a digital wallet on a hard drive; e-cash is also known as Scrip, digital cash, or digital coins.
Exchange rate → the ratio at which the principal unit of two currencies may be traded; international businesses offer this information as a customer service.
Profitability → The conditions which determine a company's ability to make a profit after their expenses are deducted from their income from sales. Variables include overhead such expenses as facility, equipment, inventory, distribution and wages. E-Commerce businesses have improved their overall profitability through the increased productivity achieved through the speed of the internet and the ability to eliminate intermediary costs.
Tariffs → the customary beliefs, social forms, and material traits of a racial, religious, or social group.
Productivity → The amount of output for each hour of work. Productivity has a direct effect on the profitability of a business. Increased productivity results in a stronger economy because it deters inflation of prices and wages. Economists attribute the strong growth of productivity in the US to the speed of technological advances such as the Internet. (Oelkers, E-Commerce, p. 13.)