Globalization, the Internet and e-business: Convergence or divergence in cross-country trends?

Introduction Globalization has become the subject of heated debate in recent years, a debate that is being intensified by the spread of low-cost information and communications technologies (ICTs), particularly the Internet. There is excitement about the Internet's potential for linking people and organizations across great distances and national borders, opening new markets for business and providing greater choice for consumers. Yet there is concern in many countries that the Internet is accelerating a globalization process that is causing serious economic dislocation as competition intensifies, trade imbalances grow and jobs disappear. The United States has led the world in adopting the Internet and creating new models of e-business. The environment for e-business in the United States has generally been positive, supported by a large consumer market, favorable government policies, a deregulated telecommunications market, a dynamic venture capital market and positive business and consumer attitudes toward information technology. U.S. companies have used the Internet to create new businesses, transform old ones and coordinate their supply chains. Outside the U.S., consumers have tapped the Internet to buy products that might be unavailable or expensive locally. Businesses are using the Internet to reach new markets and coordinate with global production networks. However, many countries worry about the U.S.-centric technology, language and culture of the Internet, and fear being left behind if they fail to adopt new technologies and business practices.