International Business | Internet Assignments

International Business : The Challenge of Global Competition, 8/e

Donald Ball
Wendell H. McCulloch, California State University Long Beach
Paul L. Frantz, California State University Long Beach
Michael Geringer, California Polytechnic State University
Michael S. Minor, University of Texas Pan American

Internet Assignments

Students:

Included here are some internet/case assignments that you can use to review or that your instructor may give as assignments. Your instructors have been given the answers to these questions and may choose to give them out to you or not.

This case is designed to:

Expose you to Electronic Commerce as a global force;
Provide you with insight into the Electronic Commerce infrastructure in Mexico; and
Address obstacles that Mexico is facing in entering the Electronic Commerce boom.

Electronic Commerce or E-Commerce is having a significant impact on the way that companies do business. In addition, it is blurring and sometimes erasing domestic borders and adding fuel to globalization frenzy. As the E-Commerce revolution continues at an amazing pace, Mexico and Latin America have been described as its next frontier.

Mexico's effective entry into the E-Commerce markets is hampered by inadequate venture capital and restrictive government policies. In addition, only a small percentage of Mexico's population has Internet access. To make matters worse, many businesses are concerned about going online because of antiquated back-office computer systems, inefficient distribution networks and widespread credit card fraud.

To be successful, E-Commerce businesses need a number of things to be in place. Included here are (1) an infrastructure that ensures quick and reliable delivery of products to customers; (2) credit card safety; (3) products to sell; (4) a strong, technically oriented employee group; (5) available venture capital; (6) financial partners to handle the credit card payments; and (7) customers who are willing and able to purchase on-line.

A site that provides useful information in assessing the E-Commerce readiness in different countries is the Economist Intelligence Unit's "e-businessforum.com - doing business in. . ." found at:

http://www.ebusinessforum.com/index.asp .

Case Instructions:

Go to the Economist Intelligence Unit website referenced above, and locate information about Mexico and the US. Answer the following questions.

What percentage of Mexicans have Internet dial-up accounts? How does this compare with the Internet dial-up accounts (people on-line) per capita in the US?
Assuming that the population remains constant, what percentage of Mexicans are projected to have Internet dial-up accounts in 2004?
What is the GDP per head in US dollars in Mexico? What about the US?
What is the PC penetration in Mexico? What about the US?
From your reading about E-Commerce in Mexico, what do think are the long-term prospects? Why? (Note: You may use any parameters that you think are valid, but you have to support your answer.)