Page 72 - Electronic Commerce

Introduction to Electronic Commerce

by several freight carriers, storage in a freight forwarder’s facility before international
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shipment, and storage in a port or bonded warehouse facility in the destination country.
This handling and storage require monitoring by government customs offices in addition
to the monitoring by seller and buyer that occurs in domestic transactions. International
transactions usually require the coordinated efforts of customs brokers and freight
forwarding agencies because the regulations and procedures governing international
transactions are so complex. You will learn more about how businesses transfer money in
international transactions in Chapter 11.
Industry experts estimate that the annual cost of handling paperwork for international
transactions is $700 billion. Companies sell software that can automate some of the
paperwork; however, many countries have their own paper-based forms and procedures
with which international shippers must comply. To further complicate matters, some
countries that have automated some procedures use computer systems that are
incompatible with those of other countries.
Some governments provide assistance to companies that want to do international
business on the Web. The Argentine government operates the Argentina Empresas Web
site to provide information to companies that want to do business in Argentina. The U.S.
Department of Commerce’s International Trade Administration operates the Export.gov
site, a portal for U.S. companies that want to sell abroad.
Infrastructure issues will continue to prevent international business from reaching its
full potential until technology is adapted to overcome barriers instead of being a part of
those barriers.

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