The application and development measures of electronic commerce in international trade

  1、Preface

  With the traditional international trade in the past is very different, the trade activities under the conditions of the network has produced a leap in nature, from the collection of information, negotiation, to the exchange of goods, settlement, return and other aspects have removed the limitations of the platform place, and a breakthrough of the shackles of the one-way logistics operation pattern.

  2、The meaning of e-commerce

  International trade in the 21st century is a knowledge-based economy, so people from all walks of life use their own economic theoretical knowledge and relatively fair opinions to give a commentary on e-commerce. The most authoritative explanation comes from the World Conference on Electronic Commerce in Paris in November 1997, at which experts and representatives pointed out that: electronic commerce refers to the realization of the entire trade process in all stages of the electronic trade activities. Further from the scope of coverage, the trade parties are electronic transactions rather than any form of commercial transactions conducted through face-to-face exchanges or direct interviews; from the technical aspect, e-commerce is a multi-technology collection, including the exchange of data, access to data and automatic data capture.

  To sum up, e-commerce is the process of using various electronic tools and electronic technologies to engage in various business activities to complete the automation and electronicization of the whole trade activities. It not only refers to transactions based on the Internet, but also includes all business activities that use electronic information technology to solve problems, reduce costs, add value and create business opportunities.

  3、The basic characteristics of e-commerce

  3.1 Significantly improve the effectiveness and efficiency of business activities

  First of all, the use of electronic commerce to carry out international trade can save all kinds of costs arising from the transaction, according to information, through the Internet to do publicity can increase the number of sales 10 times, while the cost shrinks to 1/10 of the original; in addition, through the use of EDI technology, enterprises can save 5%-10% of the procurement costs.

Secondly, information technology-based e-commerce can improve the inventory problem caused by inaccurate and untimely decision-making information. With the help of Internet, enterprises can quickly receive market demand information, and quickly transmit the decision-making production plan to suppliers for timely supply replenishment, which reduces inventory and thus realizes cost inventory management.

In addition, e-commerce breaks the traditional information stage-by-stage cooperation rules and turns into the collaborative and parallel working method of information sharing. Both buyers and sellers can adopt standardized electronic form contracts, insurance certificates, letters of credit, etc., so that all relevant documents can be delivered instantly, in order to minimize the unnecessary waiting time due to closed information, so as to achieve the purpose of shortening the production cycle.

  3.2 Realize the informatization and networking of trade activity process

  Under the service of e-commerce, many business activities are greatly facilitated, especially the trade activities between countries, and the business scope also involves many governmental functions and many supporting services, including insurance, transportation, finance, as well as customs clearance, market regulations, arbitration of trade disputes, tax collection and management, and many other links, all of which are in online exchange activities.

The crucial trade negotiation part of the process also involves negotiating the details of the transaction through email inquiries, offers and returns, freeing the company from the high communication costs of traditional trade methods. In addition, the use of e-commerce means that the company can establish its own network platform, communicate with each counterparty via e-mail, and realize the transmission of transaction information, and its payment means can also be used online with the services of third-party banks or specialized credit card companies, making the process extremely easy and fast.

  3.3 Significantly improve the international competitiveness

  E-commerce has become the development direction of traditional foreign trade enterprises at the same time. E-commerce integrates the traditional commercial activities of logistics, capital flow and information flow by using network technology to create a more competitive business advantage. Therefore, foreign trade enterprises should take the initiative to release information about supply and demand through the establishment of relevant sites as soon as possible, timely two-way communication with customers through 7×24 services, with the help of the network to promote their image and expand the visibility of enterprises.

  4, the application of e-commerce in international trade

  4.1 Internet level

  Internet is the international Internet, which is an international network formed by connecting a large number of computer networks through certain standards. The Internet was created in the 1960s in the United States, after the nature of the military, scientific research use changed to commercial use. In traditional business activities, the process of producing products is very tedious and complicated, and it is necessary to go through the procedures of purchasing raw materials, production and sales step by step, and the unsold products for a certain period of time have to be stored in warehouses, and when there are not enough raw materials, they have to be transferred from elsewhere, and the sales of products are only in the form of retail and wholesale. After the introduction of computer network, any information of products can be stored in the network for free, so that enterprises can find out the demand information of consumers in time to compare the situation of their products and take measures in time, which truly achieves the efficient allocation of social resources and maximum savings. Its good communication and low cost make it possible for large enterprises and small and medium-sized enterprises to adopt it, but the problem of security has yet to be solved.

  4.2 EDI Level

  EDI (Electronic Data Interchange) project is the combination of information technology and socialized service system, importers and exporters use electronic forms for customs clearance, commodity inspection, insurance, transportation insurance and foreign exchange settlement of goods to reduce the data circulation time and manual transcription errors of the whole operation system, and eliminate the geographical factor barriers to speed up the pace of international trade. EDI is mainly used in the transmission of foreign trade export documents, using a closed private network, significantly reducing the consumption of talent, material resources and time, reducing the intermediate links, speeding up the pace of international trade, relatively better than the Internet. this online virtual information exchange, opened up a new market space, especially for enterprises to find the best trading partners, and the world connected into a unified The large market. However, the investment cost of EDI is high, so it is often used by large companies, and is relatively difficult for small and medium-sized companies to afford.   4.3 Intranet Level

  Intranet, also known as enterprise Intranet, refers to the internal departments or branches of an enterprise connected together through the company’s common network, so that employees can share information and communicate together. At the same time, the branches of an enterprise may be distributed worldwide or nationwide, but the employees use the same Intranet to achieve resource sharing, so it is not a geographical concept. Nowadays, Intranet can realize global business information management, global meeting, office automation and paperless, and play a powerful role as a communication channel for sales staff to interact with customers, and under certain authority, customers of enterprises can also browse the corporate intranet to promote product information and increase sales. In addition, according to the different types of enterprises, e-commerce also has a different form that should be born, for example, large foreign trade enterprises is the use of enterprise intranet supplemented by Internet-based EDI, small and medium-sized enterprises tend to use the international Internet, foreign trade enterprises tend to use the extranet, and both production and trade of foreign trade enterprises are more to take a dual-pronged intranet and extranet.

  4.4 Specific application level

  The specific application level refers to the EDI-based Bolero and Tradecard e-commerce systems. Using Bolero e-commerce system, importers and exporters and financial institutions are integrated into a unified platform, and all logistics and capital flows in the process of international trade are unified, in which logistics and transaction service providers such as commodity transportation are closely linked, and capital flows are closely linked with banks and other financial institutions.

  The Bolero trade platform is credible and reliable, and it provides absolute security for customer trade information, business documents, trade data transfer, and third-party services, and exporters are able to use the system’s open accounts. At the same time, Bolero system adopts different strategies according to the different users, the system will provide loans from partner banks to importers and discounts given by exporters, so as to reduce working capital, which can be said to be the right medicine. Not only that, many banks participating in the Bolero system can also carry out trade financing in a stable and reliable environment, not only to enjoy credible services and benefits and accelerate financial innovation of banks, but also to allow exporters not to bear the credit risk of importers.

  The Tradecard e-commerce system, on the other hand, integrates accounts payable and receivable management, financial management, trading partner management, and integration service functions. Based on the EDI data connection channel, buyers and sellers, agents, factories, financial institutions, and service dealers can all connect to the same secure Web site system to negotiate payment terms, trade terms, or provide products and services to domestic and international customers.

  Tradecard also performs a human check of the system for defects. Tradecard also provides comprehensive financial management services for suppliers, including financing management, credit protection and export financing management, as well as Tradecard system is based on the EDI system, which combines the versatility and connectivity of the Internet with the security technology of EDI, and adopts a strict membership system, only those who meet the system requirements can become members, so it has a high degree of security and connectivity.

  5、Disadvantages of e-commerce

  Although China has created conditions and accumulated experience for the use of electronic commerce in the field of international trade, there are still some problems in the scope of application, the degree of application and the level of application technology.

  5.1 Policy and legal environment needs to be improved

  From the e-commerce point of view, China’s relevant information technology policy is not enough to solve all aspects of the coordination of various departments and regions, because the development of foreign trade enterprises e-commerce has always been inseparable from the industrial and commercial administration, customs, insurance, taxation and many other details, and the laws and regulations, standards and policies still need to step up customization, such as electronic contracts, electronic signatures, e-commerce authentication, electronic data evidence, online transactions Most of them are still legislative gaps, such as e-contract, e-signature, e-commerce authentication, electronic data evidence, online transaction and payment, online intellectual property rights, e-commerce jurisdiction and online dispute resolution, etc. This situation of legislation seriously lagging behind technology brings a high degree of risk for the transaction subjects engaged in e-commerce, and constitutes a barrier that cannot be ignored to hinder the application of e-commerce.

  5.2 Network security issues need to be resolved

  E-commerce technology always relies on the network, so it requires the data transmission, exchange and processing between commercial transactions to have a very high security factor, but also requires the authority of the online transaction authentication to be infallible. However, the nature of the Internet is always open and unguarded system that is not intended for commercial purposes, so the Internet does not have the security needed for commercial transactions. If the identity of the export destination from abroad is difficult to confirm, it is easier for the supplier to falsify the evidence of supply to foreign countries, so as to fraudulently obtain export tax rebates. These undoubtedly increase the tax avoidance, tax evasion problems and tax conflicts, so whether internationally or domestically, the security of e-commerce is still worrying.

  5.3 The degree of application of e-commerce in foreign trade enterprises needs to be improved

  China’s foreign trade enterprises to use electronic commerce to carry out international trade utilization rate is not high enough, and foreign trade enterprises e-commerce website function is single, most of them still stay in the use of the network to publish advertising, electronic catalog, online interchange of commodity information, should be used to the complete electronic negotiation, signing purchase contracts, the entire process of trading e-commerce.

  6, e-commerce in the development of international trade measures

  6.1 Create a new macro environment conducive to the use of e-commerce enterprises

  
  The first and foremost is the issue of international taxation and domestic taxation. For the tariff issue, the developed countries’ view is to levy low or no tariff on international trade using electronic commerce. Considering the national conditions of China as a developing country, it is decided that we must give full consideration to the level of tariff rates and tariff structure, neither zero tariff nor excessive taxation. The approach that can be taken is to maintain resident jurisdiction and regional jurisdiction as the absolute principle, and to strengthen international cooperation in e-commerce tax jurisdiction by uniting developing countries as the main strategy.

  6.2 Create an e-commerce credit guarantee system

  In order to ensure the health and safety of e-commerce transaction environment, the use of a credible and effective credit guarantee system has become an urgent task. Based on this, the Tradecard system can be adopted, and the adoption of this system can guarantee the operating environment of financing management, credit guarantee and export financing management. It provides financial services such as payment discounts and receivable time alerts to members in advance, so that they can arrange their own capital operation and make capital plans more flexibly. The Tradecard system also provides integrated services such as third-party commodity inspection and logistical support for buyers and sellers. In commodity inspection, Tradecard members are able to provide services to verify the quantity and quality of goods requested. This inspection service is designed to be simple, automated and automatically integrated into the transaction cycle. As a seller, you will also receive a discount, which also facilitates the supplier to receive the receivables earlier. Not only that, the buyer and seller are also freed from the cumbersome process of a physical credit form, the buyer has the power to decide whether to provide credit insurance to the seller, and once provided, the seller also has the power to obtain credit protection online, and the credit line turns over more quickly, allowing the existing bank line of credit to be used more freely for other business purposes.

  6.3 Establishing representatives of small and medium-sized foreign trade enterprises with active use of e-commerce technology

  For small and medium-sized enterprises, due to operational difficulties and inability to invest, they lack the enthusiasm to apply e-commerce, but in order to enhance the overall competitiveness of China’s foreign trade export enterprises, small and medium-sized foreign trade enterprises are indispensable for China’s foreign trade exports. Therefore, the government should take appropriate measures to adopt policies such as policy encouragement, tax preferences or financing preferences to selectively support a number of key industries and industries of small and medium-sized foreign trade enterprises, give full play to the role of guidance, and gradually realize the change from inviting foreign trade enterprises to develop e-commerce to self-reliance and self-sufficiency of foreign trade enterprises to develop e-commerce, and focus on establishing small and medium-sized foreign trade enterprises to apply e-commerce. The role of small and medium-sized foreign trade enterprises in the development of e-commerce will be fully realized.

  7、Conclusion

  E-commerce is the mainstream way of foreign trade in the 21st century, and also brings inexhaustible benefits to many links in import and export business. At the same time, e-commerce also expands the international trade market and creates opportunities for foreign trade enterprises to reshape their international competitive advantages, so China’s foreign trade enterprises must seize this valuable opportunity to apply e-commerce and enhance their international competitive advantages.

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