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Impact of Internet on International Business

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WHAT IS THE IMPACT OF THE INTERNET ON INTERNATIONAL BUSINESS? WHICH COUNTRY WILL GAIN AS INTERNATIONAL BUSINESS THRIVE ON WWW? 1.0 EXECUTIVE SUMMARY
Internet enhance migrate businesses to drive globally. Internet impacts on international businesses are huge. This study will conduct the positive and negative factors impacting international businesses. Internet effects the businesses in positive and negative sight. Internet usage in the world is migrate users to save cost of travel, fast communication and expand business market globally. Internet disadvantages are created by irresponsible users. Internet disadvantages explanation are about malwares, spamming, identity theft and unable to solve conflicts. This study examines the impact of the internet on international businesses. The findings concerns on the country that will gain as international business thrive on World Wide Web (WWW).

2.0 INTRODUCTION
International business is playing a huge role in today’s economy. Everyone is taking part in international business. Larger and smaller businesses become global businesses. Business transaction between two parties from various countries is known as international business. Every day dramatic changes are happening in international business world. Export and import of goods and services, international investments, licencing, franchising and management contracts are some kind of international business activities. In addition, an organization that participates in cross-border transaction is become international business. For instance, Mitsubishi is a global company established in 1970. Today the corporation becomes international consist of more than 200 offices and beyond 600 company groups actively operating in almost 90 countries of the world.
Going global in this century is easier than it has ever in the past. Improvement in countries financial, economic, transportation growth and telecommunication integration is a process of worldwide movement toward globalization. Globalization in a country strongly helps to obtain raw material, get low cost suppliers, leverage core competency, better compete with rivals and establish new market. To illustrate, Sony an electronic company from Japan effectively bound its core competencies in miniaturisation,directed the development of innovative Sony Walkman. Additionally, dramatic evolution in communication tools like e-mail, information processing system, internet technology growth and supply chain management innovation are factors of globalization creating advance interdependence economic and cultural actions. AmartyaSen, a Nobel-Prize winning economist says, globalization “has enriched the world scientifically and culturally, and benefited many people economically as well”.
Globalization started to boom at the end of World War II, in middle of 1980’s due to decline in free flow of goods barrier, services and capital in countries. International Monetary Fund (IMF) in year 2000declares trade and transactions involvement, capital and investment movements, migration and movement of people and the broadcasting of knowledge are basic aspect of globalization. Globalization leads the world into international businesses and exchange goods and services to various countries.FoodstuffslikeMcDonald’s hamburgers, accessories like Bonia handbags and Gucci purse, clothes like Levis jeans, Samsung electronics devices and German BMWs is in most of the countries in the world.
Today’s world of business is connecting millions of individuals and thousands of industries with internet technology enhancement. Internet is global systems interconnect people in the world with wired and wireless connections. People are connected over computers, tablets, laptops and mobile devices. An article titled “Children using internet from age of three, study finds” written by Victoria Ward on 01 May 2013emphasize, children start using the internet at the average age of three. Since 1990, technology improvement in internet becomescommercial introduction to international businesses. Internet has a lubricated communication within business and between businesses. Cross border transaction, e-commerce businesses like B2B, B2C and C2C, supply chain management and trade and investment improved with internet implementation. World Wide Web (WWW) like Mozilla Firefox, Microsoft's Internet Explorer and Google Chrome interconnect users and enhance business transaction.

3.0 ADVANTAGES OF INTERNET IN INTERNATIONAL BUSINESS
International business is a business activity carries out across the national border. International business includes international trade, foreign manufacturing and service industry like transportation, tourism, advertising, construction, retailing, whole selling, and mass communication. International business becomes successful with the knowledge of emergent and fast-moving internet telecommunication. Internet usage surged in the 1990s with the development of the user-friendly World Wide Web (WWW).Internet enhancementhelps in restructuring company businesses toward the world.The internet practice in international business has given improvement to business efficiency and build new trade avenue. Likewise internet usage in international business improving companies business by reducing the communication cost, marketing cost, transportation and trading cost. Internet effectthe international business in positive and negative manner.

3.1WEB 2.0
World Wide Web or simply known as WWW helps the growth of internet usage since 1990. World Wide Web development brings the birth of Web 2.0 after Web 1.0. Web 2.0 is the latestbuzzword comprises variety of web sites and applications. Web 2.0 is easy to create information and share online information. Web 2.0 helps international businesses to be updated with latest developments in the world and improve businesssectors. Web 2.0 applications are wikis, blogs, social networking, folksonomies, podcasting and content hosting. Some of the popular websites among users are Wikipedia, YouTube, Facebook, MySpace and Flickr. Web 2.0 allows users to gain information from various sources instead of reading information from one source. Plenty of information gain from Web 2.0 helps in better understanding and smart decisions of corporation. Likewise Web 2.0 becomes the best tool of communication to connect through the world. People in businesses can make voice and video calls, chat rooms community, send free instant message and create discussion forums. Given this facts, Web 2.0 improve businesses through faster and easier communication with nominal cost. Picture 1 below shows Web 2.0 applications.

Picture 1

3.2NEW OPPORTUNITIES FOR BUSINESS TO ENGAGE IN INTERNATIONAL TRADE
Internet utilization in international business brings new opportunities for businesses and consumers to engage in international trade. International trade is exchanging capital, goods and services across international border. Corporation can conduct sells operation in wider way with internet technology. In this era, more firms using internet technology to support personal selling effort, to train salesperson, to conduct sells meeting and servicing accounts globally. In addition, sales organizations around the world can save time and cost by conducting live sales presentations, business sales meeting and train representativethrough internet. Web 2.0 brings these facilities to businesses. Online businesses such as Amazon, Apple and eBay are also growing rapidly with internet growth. Mudah.my, Flipkart, Zalora, Yebhi, Shoppers Stop and Overstock are online businesses are become international businesses. Social media like Facebook, Twitter, Renren, Weibo and Wechathost users with plenty businesses information. Internet overcomes traditional trade barriers and assists individual and businesses to sell goods and services online from different countries. World Trade Organization (WTO) is an international body dealing with the rules of international trade across countries. International trade become smarter and easier with online intervention. A classical economist Adam Smith states, with the use of total advantage principal a country could benefit from trade, if it has the least absolute cost of production of goods.

3.3 KEY DRIVER OF INNOVATION AND PRODUCTIVITY GROWTH
Internet technology becomes a key driver of innovation and productivity growth. The productivity is the quantity of outputs produced using given input with provided time in economy. Effective management in production sector will improve the productivity and business process. Internet helps businesses to connect with suppliers and customers all over the world at lower cost. This migrates in cost saving and increase the productivity of a product. Additionally, producers can gather data of customer preference, new market trends and improves resource allocation using social web like Twitter and Facebook. Internet assists small, medium and large enterprises (SME)to develop productivity and unique products sells through World Wide Web and increase corporate profit. Small and medium enterprises (SMEs) can gain information and ideas to produce innovative products they by gathering raw material, labour and capital from various country. The information updating in social websites, business website and online surveys help to build new ideas. Firms can gain customer, retailer, supplier, manufacturer and wholesaler via internet with lower cost. Moreover, firms can reduce expense cost and increase profit. Firmsmay compare product quality, price and design through internet and create uniqueness to products. Internet technology enhances firms to create a web site and compete with much larger businesses globally. Amazon is an international electronic commerce company and world largest retailer. Amazon serves consumers via online retailer web base. Amazon is growing with internet retailing and gaining online market shares.

3.4 EFFICIENT NETWORKING MECHANISM AMONG BUSINESSES
Internet development in international business brings efficient networking mechanism among businesses. Technologyimprovements in internet and e-business platform create efficient network mechanism. Internet consists plenty of useful information and knowledge to help firms in purchase and sell goods and services globally. Internet reduces transaction costs and increases the speed and reliability of transaction for both business-to-business (B2B) and business-to-consumer (B2C). Business-to-business (B2B) is a business transaction between businesses. Manufacturer, wholesaler and retailer involve in B2B transaction. Business-to-consumer (B2C) is businesses that sells products and provide service to end consumers. B2B and B2C conduct the business activity via online with internet connection. Online base B2B and B2Creduce transportation cost and save time by selling and purchasing products and services by one click. For instance, Chinais the world second largest country with huge number of internet users. Mostly, consumers in china will search online engines to sell and purchase goods. An article on 13 February 2014 entitled “Alibaba encroaches on Amazon territory” written by Johan Van Geyte mention Alibaba an internet based e-commerce in China controls 80 % of all Chinese ecommerce with B2B and B2C networks. Tmall an active online shopping web and Taobao online base B2C retailer is showing 1.31 billion euro turnover in 2013, 3Q.Below attached China’s online shopping websites, Taobao website in picture 2 and Tmall platform in picture 3.

Picture 2

Picture 3
3.5 INTERNET IN SUPPLY CHAIN MANAGEMENT
The emergence of internet in the world has rocked the field of supply chain management. Supply chain management utilise internet technology for transportationservices.Dr. R. Lancioni, Department of Marketing, School of Business, Temple University, Philadelphia, PA 19122 states internet services is used to process the order, manage vendor relations, purchase goods, manage customer service, manage inventory andproduction. Internet technology helps data on supply chain activities to process faster and product movements updated to all supply chain members. Additionally, internet in supply chain management createsstrong integration among customers, distributors, manufacturer and suppliers. For example, Dell computerssell devices like laptop via mail-order system. The technology growth in supply chain management, enhance Dell computers to develop online sales platform reach customers. Internetin supply chain management creates more sourcing opportunities for raw material and safe the firms cost. The development in supply chain management coordinates to businesses to reach bigger market, modify product and services and to meet individual customers and environmental needs. The internet technology brings improvement to the way of supply chain management is managed, planned and controlled.

3.6 INTERNET IN ONLINE ADVERTISING
Internet helps business growth in online advertising via web sites. Online advertising will appears while consumers surfing the web. Online advertising are display advertisement, search-related advertisement and online classifieds advertisement. The popular form of advertising is banner shaped advertisement. Banner shape advertisement can be found at the top, bottom, left, right and centre of the web pages. Online display advertisement frequently appear anywhere in internet user’s screen. The example of online advertising is where the advertisement will appear when users surf search engine to purchase online air tickets. Together with the information a flashing banner will appear like rental car, hotel rooms and even tourism package advertising platform. The consumers will be migrated to the advertisement platform and consumers may redeem the promotions. Corporation starts to practice online advertisement in businesses because more consumers are frequently spending more time in internet. Corporations tend to improve their advertising structures. Businesses are ready to do online advertising rather than advertise in newspaper and media. Online advertising platform will persuade customers to purchase the products. In addition, the online advertisement is also providing consumers with various product information, brand knowledge and online buying options. Online advertisement is bringing in more businesses to newly ventured products. Online advertisement focuses onhuge audience, easy to keep track, providing better information with lower cost, very fast progress than other medium such as newspaper advertisement and never forces where anyone can view the advertisement. Online advertisements enhanced businesses to venture globally.

4.0 DISADVANTAGES OF INTERNET IN INTERNATIONAL BUSINESS
Internet is a global medium and the kingdom of electronic businesses. Hence, this technology brings legal and social matters facing the global community and destroying business activities. Even internet technology brings growth to businesses, it also bring negative impact to users. Internet disadvantages are such as identity theft, social disconnect and spam treats. This makes some of the users afraid to utilize internet technology in their business transaction.

4.1 LEAD TO IDENTITY THEFT
Internet is a global network may lead businesses to identity theft. Identity theft happens when criminal use other person’s identity to obtain credit, purchase goods and obtain services. Identity thieves will get victims personal information such as name, address, and date of birth, social security number, and mother's maiden name in order to imitate victim. Identity thieve happens when users connect internet for online banking service, online business transaction, online credit card payment, improper database usage in transaction, credit cards usage for online transactions and social website for entertainment. Online usage in their personal and business life will link to identity theft. Online shopping such as weekly food shop, booking holidays, buying special gift and buy goods may lead to internet identity theft. This is due to the users need to give their personal information to proceed with transactions. Through unsecured networks or lodging software the thieves can gain internet users’ personal information for their own benefit. Lack of personal data through internet transaction can be happen by dumpster diving, payment card theft, pretexting, shoulder surfing, skimming and business record theft. Normal internet users and employees will be the victim of cyber-crime. Personal identity theft will impact the businesses.
4.2 SPAMMING
Email is one of the easiest and fastest way businesses conduct transaction. Spam in the form of emailvirus brings disadvantages to individual and businesses. The users are frequently overwhelmed by virus attacks in the system. Spam is an electronic junk mail or junk newsgroup postings attack the internet users by mails. Spam can easily simplify as an unwanted messages sent to a person's email account or mobile phone. Usually spammers’ sprit the junk mails to the users’ id which gain from social websites, user’s address book, chat rooms and customer list. Other than that advertisement, promotion ads and social network users are also attack by the spammers. Generally an advertisement of a product contains spam will sent through email to mailing list or newsgroups. Moreover, spam may be will sent through our own email id. Several ways to overcome this attack is by changing the password, report the e-mail as spam, delete the email address from address book and scan computer for virus and spyware. Spamming is also being used to spy businesses and accessing government information. Spying business through spamming is not healthy for business growth. The information taken from a company may use to spammers personal use. Spammer may use company information to gain the tender or businesses from multinational business. in conclusion, spammer will affect the growth of business.

4.3 UNABLE TO RESOLVE THE CONFLICT
The business world is full of stress, conflict, complex and critical to many people's financial survival. Businesses need to solve problems and conflicts faced within the workplace and between the businesses. The businesses such as B2B and B2C is an easy way to sell product but harder to solve the conflict because the transaction is over the technology devices. Businesses transaction using internet technology will help the growth of business but unable to solve conflicts. International business is a business transaction among two different countries. Countries involve in franchise business will use internet service to share the information and idea. The disconnection or limited internet service will make loss to company production. The best example is when the retailer from China export different material to the manufacturer in Malaysia that ordered through online channel. In this case, Malaysian manufacturer have to wait for some time until the ordered products arrive to Malaysia. Manufacturer has to hold their production and this will bring negative impact to the company.

4.4 MALWARE
Malware in internet is as another negative impact of businesses. Malware, the malicious software includes computer viruses, worms, Trojan horses and spyware. Malware is used to distract the business operation conduct through computer system, to find companies important information and to access private computer structures. The malware will be send to business computers in the form of code, scripts and active content. Additionally, the worms and Trojan horses will be sent through email and instant messages. Trojan horses, viruses and spywares will give impact the business computer when the employees run the infected programs. Malware automatically will be downloaded through the infected Web browser when firms computer users browse websites that infected by malware. Likewise, worms an unsafe malware will destroy information in company computer even users do not access to web or programs. The malware in business computers can be notified when the computers are not sable as before, computers are rebooting, crashed and slow down during the process. Additionally, when malware has already attacked the computers it will take time to connect internet services. Malware will affect the businesses by attacking valuable data to be used in next mission of corporation. This will delay the business operation and give chances to business competitors. Malware will disable Microsoft windows services which carries thousands of business files and documents. The potential interloper will access the business confidential data to develop their own benefits. Customers will dissatisfied when the company loss the important data and customers information. Customers will feel unhappy with the performance and no longer hold their relationship with the firm.

5.0 FINDINGS
The world is going global with the technology enhancement. Internet helps the businesses to grow and glow in the global. Each country in this world is using internettechnology to increase countries economic growth. Everyone is using internet services in their daily life for personal and corporate uses. Countries that fully utilizing the internet enhancement will gain as International Business thrive on WWW.

5.1 INTERNET USERS BY REGION

Source: Internet World Statistic
Chart 1: Percentage of internet users in the world by region

The pie chart 1, taken from Internet World Statistic shows there were 2,405,518,376 internet users over the world as at 30th June 2012. This show the internet user in the world is increasing rapidly. Asia was the huge region used internet in year 2012. Asia internet users were 44.8% or 1,077,672,232 as at 30th June, 2012. Europe was the second leading region used internet which was 21.5% or 517,186,450 users. North America was in third region in the world with 11.4% or 274,229,095 internet users as year 2012. Latin America shows 10.4% or 250,173,911 users, Africa with 7.0% or 168,386,286 internet users, Middle East figures 3.7% or 89,004,179 users and in Australia 1.0% or 24,055,183 people using internet.

5.2 CHINA IS THE TOP INTERNET USER COUNTRY IN ASIA

Source: Internet World Statistics
Chart 2: Top internet user country in Asia
Asia is the leading region with huge number of internet users. Asia is the world largest and most populous region, located primarily in the Eastern and Northern hemispheres. Asia countries are China, India, Japan, Malaysia, Indonesia, Korea, Philippines, Vietnam, Pakistan, Thailand, Laos, Iran and more. According to the Internet World Statistic in chart 2 shows China is the leading country that using internet with 538 million of internet users followed by India 137 million and Japan 101.2 million as at 30th June 2012.The above bar chart shows, China is the country that will gain as an international business thrive on World Wide Web (WWW).

5.3 INTERNET USERS AND PENETRATION RATE IN CHINA

Chart 3: Internet users, Penetration rate and GDP growth rate in China
China is the country with huge number of internet users and increasing through the years. Chart 3 shows, internet users in China are increasing each year from 2008 to year 2013. The China’s internet user in year 2008 is 298 million. This number increased in year 2009 to 384 million internet users or increased by22.39%. In year 2010, the internet users are 457.3 million or 16.03 %.compared with year 2009 in China. Internet users are increased 10.88% or to 513.1 million in year 2011, 2012 seem internet users increased to 9.02% or to 564 million. Last year, year 2013 shows internet users in China increased to 617.6 people or increased by 8.68%.
The above finding also shows the internet penetration rate in China increasing from year 2008 to 2013. Penetration rate in year 2008 is 22.6%, in year 2009 is 28.9%, 2010 is 34.3%,2011 seems 38.3%, 2012 internet penetration is 42.1% and 2013 is 617.6%. The penetration rate of China internet is growing due to the increasing number of population. Statistic shows, each year the population in China is growing and controlled by China’s one-child policy.
Gross domestic product (GDP) growth rate in China is decreased from year 2008 to 2009, increased in year 2010 and decreased again in year 2011 to 2013. China’s GDP rate in year 2008 is 9.6 % decreased 0.4% or to 9.2% in year 2009. The growth rate seems increased by 1.2% or 10.4% in year 2010 compared with year 2009. Unfortunately the growth rate decreased to 9.3% in year 2011 and decrease again in year 2012 by 1.5% or to 7.8%. The gross domestic product in year 2013 also decreased 7.7%.
Since 1970, China has moved to a more market-oriented economic. In year 2010, China became the world largest exporter. China from agriculture has expanded their economy by creating a spread in banking system, stock markets development, private sector expansion, foreign trade and investment involvement. China in year 2013 stood as the second largest economy in the world after the US, having surpassed Japan in 2001. The government is considering in energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development.
Their efforts to cool a red-hot property market in 2011 appear to have small inflation, but contributed to slower GDP growth in 2012 and 2013. An article, “China economic growth rate stabilises at 7.7%” taken from BBC News on 20 January 2014, stated China's economy is the world's second largest economy has shown signs of stabilising as 2013's growth rate matched for 2012. Gross domestic product (GDP)has grown at an annual rate of 7.7% in the October-to-December period which down from 7.8% in the previous quarter. The article also says, growth rate of 2013 was still higher than the government's target rate of 7.5%. It seems China is trying to maintain strong growth while rebalancing its economy.
5.4 INTERNET ACCESS DEVICES

Chart 4: mode of internet user access the internet in China
Chart 4 shows the mode of Chinese internet users accessing the internet from year 2011 to year 2013. Chinese internet users access the internet by desktop, laptop and mobile phones. The percentage of Chinese users accessing the internet via desktop falls from 73.4% in year 2011, to 70.6% in year 2012 and to 69.7% in year 2013. The laptop usage to access the internet among Chinese users also shows a decrease of 2.7% from year 2011 to year 2013. In year 2011, 46.8% used laptop to access internet decrease to 45.9% in year 2012. The laptop usage to access internet in year 2013 decreased by 1.8% to 44.1%. In the meantime, the mode Chinese user access through mobile phone is increasing from year 2011 to year 2013. The mobile phone access to internet in year 2011 is 69.3% and increased by 5.2% to 74.5% in year 2012. This mode of users increased another 6.5% or to 81.0% in year 2013.
The report from ZD Net, “China's Internet population surges to 564 million, 75 percent on mobile” written by Charlie Osborne on January 15, 2013 says about there were more Chinese citizens have access to the Internet through mobile technology that driving internet penetration. The report also highlight that mobile technology is booming because of the increased number use of tablets and smartphones. As a result, the report says that Chinese citizens go online via tablets, smartphones and wireless networks has increased by 18.1 percent and bringing the wireless mobile population to 420 million.
Mobile phone usage in a way of accessing internet is increasing due to the technology booms in smart phone production. There are variety of mobile smartphone is producing in China. The smart phone like Apple’s smart phone market share is higher. China is also known as the world biggest smart phone marketer. In China, there are variety of smart phones is being produced and young generations more prefer to access internet with easiest way.

5.5INTERNET COMPANIES IN CHINA
China’s evolution in internet is an important driver of China’s economic growth. China internet users are increasing each year. In year 2013, China has reached the growth of internet users with 617.6 million. Internet sector in China helps in strong economy growth. There are thousands of internet companies contribute in the growth of China. Internet companies like Alibaba, Tencent and Baidu is the biggest internet market of China. The other important companies are Youku-Tudou, Sina, Netease, Renren, Qihoo and Ctrip. Alibaba Groups the world largest online marketplace operating internationally and domestically. Alibaba is well-known for online payment system, Alipay. In China Alibaba become the leading e-commerce business operates business-to-business platform. More than 550 million users registered under Alipay and around 8.5 million transactions are taking part daily.Alipay launched in December 2004, most widely used as third-party online payment solution in China. Millions of individual and businesses make and receive payment through Alipay because easy, safe and secure. Alibaba in China assist their customers to buy and sell through online anywhere in the world. Alibaba has expanded into mobile apps and mobile operating system. The development in mobile internet has helped e-commerce business such as Alibaba to grow and economic enhancement in China. There are three online trading markets in China to deal with online businesses. First, International Trading Market of Alibabaserves global import and export business. The other online trading market is Chinese Trading Market, combine domestic businesses in China. Finally, Japanese Trading Market involves Japanese export and domestic sales via company operation.
An article “China Celebrates Single's Day With Record-Breaking Sales For Alibaba And Other Internet Retailers” taken from International Business Times, written by Sophie Song on November 11, 2013. This article emphasize websites under Jack Ma's AlibabaGroup Holding Ltd. reported more than 35 billion Yuan ($5.75 billion) in sales on 11th November and plenty of other retailers participated in the buying binge on the day that originated as a celebration for China’s growing bachelor ranks.
Tencent is another huge internet company of China established in November 1998.Every day, millions of Chinese citizen utilizing Tencent for wireless value-added internet services, instant messaging services, entertainment services, online advertising services and e-commerce performance. In China,WeChat, QQ Instant Messenger, QQ.com, QQ Games, Qzone, 3g.QQ.com, SoSo, PaiPai and Tenpay are Tencent’s are top internet platforms. Tencent's e-commerce service in China is a key component of internet online trading and payment services. Individual and businesses will satisfy with the convenient and free online trading platform. Tencent online payment service is also secure and care-free.
Paipai is Tencent online trading platform is growing fast in China. Paipai major in online games, digital products, mobile phone, sports, special offers, mums and babies stuff, toys, superior quality products and hotels. Meanwhile, Paipai is also building a fashionable and trendy brand culture. Tenpay in the other way become a leading platform for online payment application and services in China. Tenpay is providing individual and corporate users secure, convenient and professional online payment services. In China, business-to-business (B2B), business-to-consumer (B2C) and consumer-to-consumer (C2C) are using Tenpayto build an integrated payment platform which is more convenient.Tenpayis an easiest platform for businesses to collect payments, to make payment and communicate with trading inquiry management and credit agency.
Baidu become the largest Chinese website and Chinese search engine in the world. Baidu is providing information needed by people in easiest and fastest way. Baidu is satisfying customers by providing full sort of information combed through search engine. Individual searches are industry based search, functional online search, Mp3 search, portal channels search and Tieba community search. An article from Britain’s newspaper Financial Times says, Baidu in its “Top ten Chinese global brands survey” and thus Baidu became the youngest and the only internet company on the list.
Youku-Tudouis China’s two biggest internet video sites. Both Youku and Tudou merged and become the streaming video industry in China. Users can access the top Chinese movies and Tv shows via Youku-Tudou. The merge of this two internet video site brings more viewers and economic growth. An article titled “Youku Open to Partnership Amid China’s Boom in Mobile Deals” written by Anthony Palazzo and Lulu Yilun Chen on March 20, 2014 says, Chinese internet companies are grappling to attract and keep users increasingly go online for movies, music, television shows and books. The country’s market for online video will probably be worth 17.8 billion Yuan ($2.86 billion) this year, then double to 36.6 billion Yuan in 2017.This means, in future the internet users to go online will increase.
Sina is an online media company in China. Mostly Chinese community around the world is using Sina for the businesses. Sina four major business lines are SinaWeibo, Sina Mobile, Sina Online, and Sina.net. SinaWeibo is microblog like Twitter and Facebook operates in China.SinaWeibo is users are increasing each year. SinaWeibo is a social network preferred by Chinese to communicate. Netease is a leading China based Internet technology company. In China, application development, services and other internet technology is established by this internet company. Netease is an important internet company in China to help the growth of internet and economic growth. In conclusion, internet companies in China help the users and businesses to expand their market globally and become international business.
5.6 ONLINE SHOPPING USERS

Chart 5: Internet usage for online shopping in China
Chart 5 shows the number of internet user access internet for online shopping. The number of online shoppers in China is increasing since year 2011 to year 2013. Online shopping users in year 2011 are 193.95 million or 37.8% of internet users. In year 2012, online shopping users increased 24.78% or to 242.02 million users compared to year 2011. The online shopping users in year 2012 are 42.9% of China’s internet users. The utilization online shopping user in year 2013 is also increasing to 301.89 million users or 24.74%. Chinese online shopping users are 48.9% of internet user access to internet in year 2013.
The growth of online shopping users every year shows people are more comfortable to shop through online web such as Taobao. Consumers are willing to buy goods and services via online platform rather than walk to shopping complex. China online shopping is very famous for clothing purchases. Consumers are purchasing goods like dresses and accessories from Taoboa and reselling in new platform with ordinary price. Consumers become new retailers. Picture 4 shows the Taoboa platform used in China for online shopping. An article onSeptember 4, 2012 titled “Online shopping for clothing growing rapidly in China “stating clothing is the biggest sales category for online shopping in terms of money spent and the number of online shoppers. In addition, Chinese people has spent US$42.4 billion to purchase online clothing online on year 2011. This represents a 93.5% increase from year 2010. It is also 20.6% higher than the overall market growth of online shopping.

Picture 4

5.7ONLINE PAYMENT USERS

Chart 6: Internet usage for online payment in China
Chart 6 shows the other factor encourage users in China access to internet. The number of Chinese users accessing internet for online payment is increasing from year 2011 to year 2013. Online payment users in year 2011 are 166.76 million or 32.5% of Chinese users access the internet. In year 2012, the number of internet user’s access internet for online payment increased 32.3% or to 220.65 million. The number of online payers increased to 260 million or 17.8% in year 2013. The online payment user in year 2011 is 32.5% of the whole internet users. The usage rate increased to 39.1% in year 2012 and in year 2013 usage rate increased to 42.1% of China’s internet users.
In China, internet users are using online payment platforms to make payment to businesses, retailer and consumers. Online payment migrate users to save their time and energy. They even can proceed with their online orders for businesses in one click. An article titled, “China’s Online Spending Is Growing Fastest in the Interior” written by Melanie Lee on January 14, 2014 is about consumers in China spending online boast higher growth rate and using mobile phones to make online payment for online shopping. Moreover this article stress on Alipay as China’s leading online payment provides with about 50 percent of the market by transaction volume. Picture 5 shows, Alipay are visible in mobile phone to make online payment.

Picture 5

5.8 ONLINE GAME USERS

Chart 7: internet usage for online game in China
Chart 7 shows the number of online game users since year 2011 until year 2013. The number of online game users in year 2011 is 324.28 million and grows by 11.4 million users in year 2012. The number of online game users in year 2012 is 335.69 million. Moreover the number of online game users increased by 2.31 million users in year 2013. The internet users for online game in year 2013 are 338 million. Inappropriately utilization rate of online game in China from year 2011 to year 2013 is decreasing. Utilization rate in year 2011 is 63.2 % decreased 3.7 % in year 2012 to 59.5%. In year 2013 the utilization rate decreased to 54.7 %. The above column showing the number of online game users are increasing but the utilization rate is decreasing from year 2011 to year 2013. Rapid growth of mobile internet brought more challenges than opportunities to online games. Users need more knowledge and hands on training to fully utilize online games.
6.0 CONCLUSION
Global businesses through internet technology growth inevitable, but how consumers and corporate use their influence is controllable. The way firms respond to internet world will impact competitive standing of international businesses. Internet enhancement helps the growth of businesses. The influence of internet technology in area of advertising mechanism, innovation, productivity development and international trade platforms helps in the positive sight of international business. Internet technology is also bringing challenges to businesses. Malwares, identity theft, spam and unavoidable conflict within the businesses are disadvantages of internet in international businesses. Business corporates should overcome the negative impact to become a well-known international business. Businesses should familiar with computer and internet security software, avoid conflict and be patient while taking decisions.
To sum up the foregoing, China is world second largest internet user and drives the economic growth. Every year the number of internet users, population and penetration rate is increasing. Mobile devices internet growth migrate users to go online.Alibaba, Tencent and Baidu are China’s huge search engines helps in strong economic growth. Additionally business-to-consumer (B2C) in China is growing in the sense of bringing in turnover to the country. Internet usage in online games, online shopping and online payment is increasing in the number of internet users. World Wide Web like Alibaba.com and SinaWeibo migrate China to become international business. Given the facts, entrepreneurs, enterprises, consumers and policy makers should play an active role in achieving and accelerating the full potential of the Internet.

7.0 REFERENCES 1. George N. Root III, Demand Media (2014), “Internet's Effect on the Global Market and Small Business”, http://smallbusiness.chron.com/internets-effect-global-market-small-business 10019.html 2. Christopher Matthews, Business Time (2012), “Will Amazon Take Over the World?” http://business.time.com/2012/07/16/will-amazon-take-over-the-world/#ixzz2vKI0Mpvh 3. Economic history (2013), “When did globalisation starts?” http://www.economist.com/blogs/freeexchange/2013/09/economic-history-1 4. Christopher Matthews, business Time (2012), “Will Amazon Take Over the World?” http://business.time.com/2012/07/16/will-amazon-take-over-the-world/#ixzz2vKI0Mpvh 5. Benjy Cannon, Disco, “The internet makes international trade better for everyone” http://www.project-disco.org/information-flow/072113-the-internet-makes-international-trade-better-for-everyone/ 6. Net Imperative, “The impact of the internet” http://crab.rutgers.edu/~goertzel/economistnetbusiness.htm 7. Global Economy and Development (2014), “Supporting the internet as a platform for international trade” http://www.brookings.edu/~/media/research/files/papers/2014/02/internet%20international%20trade%20meltzer/02%20international%20trade%20version%202.pdf 8. Wikipedia, the free encyclopedia, (2014) “Globalization” http://en.wikipedia.org/wiki/Globalization 9. Wikipedia, the free encyclopedia (2014) “Internet” http://en.wikipedia.org/wiki/Internet 10. Advantages And Disadvantages Of Using The Internet (2013) http://www.youthvillage.co.za/2013/09/advantages-disadvantages-using-internet-2/ 11. World Population Review, “China Population 2014” http://worldpopulationreview.com/countries/china-population/ 12. Internet World Stats, “Internet users in the world distribution by world region” http://www.internetworldstats.com/stats.html/ 13. NikiGeiersbach (2010), “the impact of international business on the global economy” www.saycocorporativo.com/saycoUK/BIJ/journal/.../Article_8.pdf‎ 14. White paper, “Developing an International Business Presence” http://www.princetonone.com/news/White%20Paper%203.pdf 15. “The international effects of china’s growth, trade and education booms” (2010) http://onlinelibrary.wiley.com/doi/10.1111/j.14679701.2011.01391.x/abstract?deniedAccessCustomisedMessage=&userIsAuthenticated=false 16. “Cybersecurity,innovation and theinternet economy” (2012) http://www.commerce.gov/sites/default/files/documents/2011/june/cybersecurity_green_paper_finalversion_0.pdf 17. CC Chuang, “ASIA MARKETING: AN INTERNATIONAL BUSINESS GAME” sbaweb.wayne.edu/~absel/bkl/vol36/36at.pdf‎ 18. A Albirini, (2008) “The Internet in developing countries: a medium of economic, cultural and political domination” ijedict.dec.uwi.edu/viewarticle.php?id=360‎ 19. Federal Trade Commission, “PROTECTING PERSONAL INFORMATION” www.business.ftc.gov/.../pdf/bus69-protecting. 20. S Liu, (2013) “An Empirical Study on E-commerce’s effects on Economic Growth” 21. Mary Meeker / Liang Wu, “Internet Trends D11 Conference http://www.kpcb.com/file/kpcb-internet-trends-2013 22. “B2B Firms To Profit From Internet Purchasing” Jun 5, 2001 www.ecommercetimes.com 23. Rocky Fu, (2013) “CIW China Internet Insights” http://www.slideshare.net/RockyFu/china-internet-stats-insights 24. http://www.tencent.com/en-us/content/at/2014/attachments/20140310 25. http://www.tencent.com/en-us/content/at/2014/attachments/20140319 26. http://www.crunchbase.com/company/alibaba#ixzz2wYL6bwIl 27. http://www.crunchbase.com/company/baidu#ixzz2wZpGkQvO 28. http://market.alipay.com/ospay/home.html 29. http://www.crunchbase.com/company/alibaba 30. http://www.linkedin.com/company/alipay.com 31. http://www.crunchbase.com/company/tencent 32. http://www.paipai.com/ 33. http://www.tencent.com/en-us/ps/ecommerce.shtml 34. http://www.crunchbase.com/company/baidu

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