DEFINITION

According to the National telecommunications and Information Association (NTA) e-commerce is the use of any electronic technology in any aspect of commercial activity. (Steinfield, 1999) "The Electronic Commerce Resource Center takes such a view, defining electronic commerce as a broad term describing business activities associated with technical data that are conducted electronically using a National Information System (NII)(Steinfield, 1999).

CONCEPT

Electronic commerce (e-Commerce) allows people to exchange goods and services immediately with no barriers of time or distance. E-commerce is an "Interconnected marketplace facilitating the exchange of a wide variety of products and services". The Internet virtual stores allow online access to customers so that they are able buy almost anything 24 hours a day.

E-commerce Functions:

7 Bring products to market, (e.g. Research and Development)
7 Match buyers with sellers (e.g. electronic funds transfer, malls)
7 Communicate with government in pursuit of commerce (e.g., tax filings)
7 Deliver electronic goods (e.g., information) (Steinfield, 1999)

Currently the following items for sale or purchase are available online:

stock quotes, payroll service, money saving tips, industrial product updates, investment planning strategies, gambling sites, personal marketing firms, estate planning, loans, business news, insurance quotes, educational offerings, jobs opportunities, and consulting sources.

 E.g. typical E-Commerce Sites:

About.COM includes details on the requirements for an online store, how to accept online payment, shipping and order obligations, and customer service as well as marketing and promotional ideas (Whyte, 1999). Go to for an exciting look at "The e-Commerce Guidebook" for those wishing to learn how to conduct business on the Internet. http://www.ecommerce.about.com

Amazon.COM advertises and sells its products by using banner ads on web pages of other products and services. Banner ads are conveniently located as a site within a site. Buyers simply click on the banner or and order whatever they wish from a host of books or CD's. http://www.amazon.com/

IMPULSESOFTWARE.COM is an online site, which assists you with creation of your own e-commerce portal. The site is equipped with real time credit-card processing capability.  http://www.impulsesoftware.com/index/html/

Feeinet.COM that offers one the opportunity to make located at is a free Internet service provider (ISP) for those short of cash. http://www.go.freei.net/www/map.asp

USC Annenberg's School for Communication provides a distance learning site for communication and journalism. The distance education alternative is maintained through the University of Southern California (USC). The site provides information on electronic commerce developments as well as updates on laws governing the Internet and information on campus resources, http://www.ascusc.org

REGULATION

Presently government is unable to regulate activities in Cyberspace. E-commerce developers, users, and lawmakers alike face issues of copyright protection, fraud and theft prevention. Privacy issues and assurance that the net is not being used for illegal activities are at the top of the legislative list of concerns (O'Neill, 1999).

LEGISLATION

"Internet Bills Multiply" (CQ-Weekly, 1999) dicusses proposed legislation and concerns with Internet content(Weekly, 1999). "The increasing numbers of bills aimed at Internet regulation are a clear example of how technology impacts us socially. There have been 77 pieces of legislation introduced in congress that seek to regulate the Internet in some manner" (Weekly, 1999). Other bills introduced in the U.S. represent efforts to regulate commerce conducted over the Internet by setting standards for business conduct (Gruenwald, 1998). Bills that monitor and control access to the large number of pornographic sites available to children on-line are a top priority for review (Gruenwald, 1998). Julia Gruenwald'd "Congress Finds No Easy Answers to the Internet Contorversies on Matters of Censorship, privacy,taxation, and commerce" addresse the matter on Capitol Hill of adrressing regulation without stifling trade incentives. On June 23,1999 congress made an effort to establish new rules of the road. The Internet Senate Commerce Science and Transportation Committee approved a bill (S761) to give reliable merchants a tool to identify shoppers purchasing goods and services online (Gruenwald, 1998)

Furthermore the U.S. is not alone in its effort to monitor Internet traffic (O'Neill , 1999). In July 1999 the British Government concerned with their ability to protect consumers instituted a bill on e-commerce. The bill was to establish the framework under which electronic transactions would be protected (O'Neill, 1999).

PRIVACY/SECURITY

Matthew Symonds article "Keep it confidential" outlines various

methods of security technology for e-business. The focus of the technology

is "to ensure that transactions remain private, secure, guaranteed, and

timely"(Symonds, 1999). Further discussions of the three main ingredients

of Internet security: encryption, authentication of identity, and virtual

private networks are included in the article (Symonds, 1999).

CONTROL

Digital Value Units: DVU's are the basic units of denomination of

electronic money; they may or may not correspond to units of national

currency. Kobrin's (1997) paper, titled "Electronic cash and the end of

national markets", outlines how e-cash (electronic money): Units or tokens

of monetary value that take digital form and are transmitted over

electronic networks. Some forms of e-cash are- electronic debit, smart

cards, and digital money

The module entitled Electronic Commerce and the Banking Industry: the

Requirement and Opportunities for New Payment Systems Using the Internet

(Crede 1999) explains the development of an effective low value elecronic

payment systemt and the implication for expansion of trade and commerce.

www.ascusc.org/jcmc/vol1/issue3/crede.html

The article Electronic cash and the end of national markets (Kobrin,

1997)explains why the electronic market may pose problems for central

governmental control over the economy and the behavior of the economic

actors; they also render borders around national markets and nation-states

increasingly permeable or irrelevant (Kobrin 1997).

Intermediaries and Cybermediaries: A Continuing role for Mediating Players

in the Electronic Market is a critique of the intermediary hypothesis, a

discussion of intermediary functions (e.g. product distribution, customer

risk management, product distribution, product information dissemination,

purchase influence, customer information, producer risk management,

transaction economies of scale, integration of consumer and producer

needs, gateways, search services, Malls, publishers, virtual reselling,

evaluation, auditing) www.ascusc.org/jcmc/vol1/issue3/sarkar.html

Sarkar, Butler, and Steinfield discuss agreements in favor of the

elimination of intermediaries. Furthermore insight as to how the use of

forums, fan clubs, and user groups affect sales (Steinfield, 1999)is

offered. The article produced by the Annenberg School at the University of

California provides us with a wealth of insight as to how Intermediaries

and Cybermediaries play a continuing role in electronic marketplace.

www.ascusc.org/jcmc/vol1/issue3/sarkar.html

Kobrin (1997)effectively raises the question of what effect does

intermediation or the substitution of direct transactions for those that

are mediated have on the economy? In other words the "rise of direct buyer

to seller or business to business relationships over the Internet whereby

the wholesale and resale outlets are no longer a part of the transaction"

are increasing daily.

SOVEREIGNTY

Other problems that arise with e-commerce are the issues of monetary

controls. The emergence of electronic cash and digitally networked global

economy allow buyers and sellers to conduct transactions from anywhere in

the world regardless of the legal ramifications. For example one may wish

to purchase a drug through an online pharmaceutical company in

Switzerland. Does one just simply order online in spite of the fact that

the drug may be experimental or even banned in the U.S?

In Cyberpower and Freedom the author states, "computers have gone from

symbolizing our vulnerability to embodying our possibilities and

illusions" (Starr, 1997). For example: although Insurance Agents and

Attorneys require licensing in the state in which the services are sold

increasingly web sites offering these services are being made available to

consumers.

CENSORSHIP

Juliana Gruenwald says, "congress is becoming increasingly aware

of matters of censorship, privacy, taxation, and commerce"(Gruenwald,

1998). The struggle over e-commerce regulation without stifling free trade

is a paradox that government presently contends with.

REQUIRED READINGS

The articles previewed represent just a few of the many that have been

written to question Internet growth and the social implications.

"Cyberpower and Freedom" (Starr, 1996) advises us of how personal

computers allow us to shop around our government. Starr argues that as

technology evolves neither Americans nor others across the globe will be

forced to adhere to laws or regulations of the state. The membership that

we feel to community, state, or nation becomes a non-issue when shopping

in Cyberspace. "There is no denying that the combined force of advanced

technology and global markets has undermined the regulatory capacity of

government" (Starr, 1996).

In "Congress Finds No Easy Answers to Internet Controversy" (Gruenwald,

1998) we are faced with the dilemma over how and what aspects of the

Internet regulation should congress be involved? "Lawmakers argue that

Congress must establish the ground rules in some areas such as limiting

children's access to pornographic sites and expanding gambling via the

internet to states where it is currently illegal" (Gruenwald, 1998).

 CONCLUSION

While geographic location no longer is a problem or a barrier for the

goods and services that you desire to purchase, questions have arisen over

how decisions made in Washington D.C., will affect those companies in the

Silicon Valley. Also the question as to whether or not government should

for that matter be involved in the regulation of Internet policy.

How does the United States government work with consumers across the globe

in circumventing laws from being broken while not impinging on personal

freedom? Is the Internet the final frontier for trade? As major companies

move their operation onto the web what are the ripple effects of doing so

2. Speculation and intrigue of bypassing intermediaries or cybermediaries are rapidly becoming more prominent on the web. Discuss the effects of cybermediaries on banking and provide speculation of the effect cybermediaries may possibly have on global trading.

3. What are the competing effects and theory under which an electronic marketplace are likely to prevail?

Economist, T. (1999, August 21,1999). Back in the real world: successful offline companies dominate online retailing. The Economist, 352, 13.

Gere, T. (November 1999, 06/28/98). The e-Commerce Guidebook, [communication]. About.com. Available: http://www.online-commerce.com/ [1999, November 16, 1999].

Gruenwald, J. (1998). CQ Outlook: Congress finds Easy Answers To Internet Controversy. Congressional Quarterly, 56(February 28, 1998), 237-240.

Kobrin, Stephen. J. (1997) Electronic Cash and trhe end of National Markets. Foreign-Policy, 107 (Summer 1997), 65-77.

O'Neill, M. (1999, September 27,1999). The e-mail must get through: promote electronic commerce while protecting privacy and curbing crime. New Statesman- (London, -England), 128, xvii.

Quarterly, C. (1998, February 28, 1998). Digital Outlook: CQ Outlook. Congressional Quarterly, 56, p.supp 1-24.

Starr, P. (1996). Cyberpower and Freedom. the American Prospect, 33(July/August 1997), 6-9.

Steinfield, C. (1999). Electronic Commerce: An Introduction to the special issue, [Internet]. Michigan State University [1999, 11/17/99].

Sarkar, M.B., Butler, B.,& Steinfield.,C. (1999) Intermediaries and Cybermediaries: A Continuing Role for Mediating Players in the the Electronic Marketplace. [Internet]. Michigan State University [1999, 11/17/99].

Symonds, M. (1999, June 26,1999). Keep it confidential: security for e-business. The Economist, 351, survey 39.

Weekly, C. (1999,). Internet bills multiply: list of 79 Internet regulation bills. CQ-Weekly, 57, 2033-41.