ABSTRACT

This chapter analyses the effects of e-platforms on cross-border sales, including the impacts on foreign sellers offering products to local buyers and on foreign buyers purchasing products from local sellers. It examines how the establishment of e-platforms affects market prices and transaction volumes, and describes the effect of a new electronic platform on foreign trade in products. The chapter focuses on e-transactions and explores how they affect resource allocation, international trade, and employment. It also examines the main characteristics of e-commerce and discusses interactions between sellers and buyers with the aid of diagrams. The chapter investigates the effects of digitalization on online sales and explains the relationship between e-platforms and foreign trade more closely. It shows that digitalization may affect foreign sellers and foreign buyers differently. The chapter considers some special cases and issues that demonstrate some of the characteristics of e-commerce.