Cross-Border E-Commerce: A New Driver of Global Trade
In this chapter, we explore cross-border e-commerce (CBEC) as a new driver of international trade. We adopt a revised i-based N-OLI framework for CBEC. Using China as a case study, we discuss the rapid growth, structure, export/import models, and infrastructure and environment of China’s CBEC. We attribute China’s CBEC success to the important role of e-commerce giants such as Alibaba.com and JD.com, the designation of CBEC pilot cities, supportive governmental policies, and big capital inflows. Four factors are seen to create future opportunities for all stakeholders of global CBEC, especially for merchants: the push from governments, the rise of middle class in developing countries, technological improvements, and more SMEs adopting CBEC. On the other hand, cultural differences, customer trust, logistics, payment, and legal and regulatory barriers are among the biggest challenges facing CBEC. Lastly, we outline several recommendations for foreign firms planning on entering into China’s market by means of CBEC.
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