Global Experience of Increasing the Competitiveness of the Countrys Economy Through Electronic Trade

Abstract

This article analyzes the experience of developed countries in increasing the competitiveness of the country\'s economy through electronic commerce, and provides recommendations for the application of these experiences to developing countries.

Introduction

I. INTRODUCTION

Effective application of electronic trade implementation mechanisms, aspects of its development and experiences in international practice is one of the promising directions of increasing the competitiveness of the national economy in international economic relations, successful integration into global trade networks, activation of domestic markets, improvement of trade culture and relations.

Rapid changes in economic relations, scientific and technical progress, active introduction of innovative technologies and improvement of social relations in society lead to further expansion of electronic trade.

Due to the mass of information about goods and services on the Internet, high consumer awareness, as well as ease of customer service (simplified online purchases and delivery), the trend of electronic sales development is significantly increasing. In recent years, the structural changes in the world market and the automation of economic relations have stimulated the expansion of electronic trade. In the development of electronic commerce, the markets of 3 regions of the world, the USA, Europe and Asia, have a special place. In the history of e-commerce, the United States was the first in the world to use e-commerce elements and has an important place in the development of the industry.

Today, the United States is active in improving and developing electronic commerce. With the formation of electronic commerce in the United States, this industry began to gain foothold in European countries, and the trend of development in Europe was realized at a faster pace than in the United States. While Asia is considered a relatively new region in the field of electronic commerce, it is appropriate to note that its market potential is somewhat high.

II. LITERATURE REVIEW AND METHODS

Currently, in the world community and developed countries, e-commerce is recognized as one of the most effective and promising sectors of national economies. In the practice of most countries, it has become customary to name this field with the terms "internet trade" or "e-commerce".

Entirely new markets are being discovered as Internet connectivity increases worldwide. Electronic trading systems form the basis of these new markets. E-commerce allows for convenient and fast shopping for consumers, and saves costs related to sales for businesses.[1]

The development of modern information and communication technologies based on Internet networks, as well as the emergence of new information systems and the introduction of electronic technologies into trade relations lead to the electronicization of modern trade.[2]

The article uses such methods as scientific abstraction, expert evaluation, induction and deduction, systematic analysis of socio-economic phenomena, economic-statistical analysis, and comparative analysis.

III. RESULTS

Trade relations on the Internet are developing rapidly, so that scientific research and practical skills in this field lose their relevance in a short period of time, and it is necessary to regularly develop skills for working with new generations of technologies. Therefore, ensuring the status and directions of development of electronic trading systems based on information technologies is considered an urgent problem of today, and a deeper approach to this issue, especially taking into account the latest trends in the development of 4G - the fourth generation of information technologies, is the demand of the time.

Since 2002, global e-commerce transactions on the Internet have been growing at an unprecedented rate [3]. In 2020, the volume of B2B (business-to-business) transactions in the United States alone will be 1.3 trillion US dollars, which is especially active in the pharmaceutical industry [4].

In general, we are witnessing the dynamics of steady growth of e-commerce in the world. We can see this in the chart data (Figure 1).

The data of the chart presented in Figure 3.1.1 shows that the e-commerce turnover in the world is growing year by year. In particular, the forecast indicator of e-commerce turnover in 2020 is 4.1 trillion. dollars, this indicator has increased by more than 3 times compared to 2014, that is, the global turnover of e-commerce is increasing by 17-22% annually on average. In 2019 alone, the market turnover increased by 17.9% to 3.5 trillion. amounted to US dollars. China and the United States are the world leaders in e-commerce markets, and today they account for about 40 percent of the e-commerce market.

As the main drivers (factors) of the rapid development of electronic trade on a global scale, the following can be cited [6]:

1. The development of the Internet network, especially due to the expansion of the coverage of mobile communication devices;
2. The growth of consumer purchasing power, which is mainly explained by the emergence of new large markets in the countries of the Asian and Pacific regions.

Currently, the world market of electronic trade is developing mainly in 2 formats [7]:

a. Internet stores. Information about the goods or services of interest is read through the website and orders are made. It offers a wide range of goods and services, and a large number of purchases are made through online shopping platforms;

b. Marketplaces. Site-aggregators or specialized intermediaries that automatically collect and process data from suppliers (online and offline) on various product groups.

In addition, another important factor that has a positive effect on the development of electronic commerce in the world market is the steady growth of the number of new Internet users, as well as the expansion of mobile transactions. By the way, today the majority of the population of developed and developing countries are provided with mobile communication devices, and it can be said that such devices have become an indispensable and usual means of human life.

During the rapid development of the global Internet network, especially in recent years, its wide spread in the regions of Africa, the Middle East, Southeast and Central Asia as new markets, the active penetration of mobile devices, smartphones and tablets into these markets, in turn, encouraged the further increase in the number of Internet users in the world. . The adoption of electronic technologies based on the Internet network is popularizing economic relations, including electronic commerce. Analysis shows that in 2013 the number of Internet users was 2.5 billion. people, in 2020 their number will be 4 billion. The fact that it exceeded 100,000 people shows that electronic commerce has a strong foundation and a wide-ranging potential. Also, this indicator, in turn, confirms that the Internet has become a decisive factor in the development of the national economy and ensuring the competitiveness of business entities.

In international practice, it is observed that electronic sales include the following operations [9]:

1. Online marketing;
2. Communication with suppliers of goods via the Internet;
3. After-sales service (service);
4. Payment system;
5. Logistics and delivery of goods.

Today, the integrated implementation of electronic sales on the Internet network is entering as a kind of innovation, that is, sales are not limited only to transactions of goods and services, but also a whole systematic process from consumer market research, marketing research to delivery of sold products and subsequent service. is reflected in e-commerce transactions. This indicates that the development of electronic trade is rising to a new level in terms of quality and scope. The economic effect resulting from the application of electronic trade technologies has a positive growth trend. In the new era of social development, e-commerce is emerging as a form of normal lifestyle relationship.

Electronicization of business activities is becoming increasingly popular in developed countries due to its many advantages. The use of e-commerce opportunities is gaining significant importance, especially for small and medium-sized business entities in their competition with large corporations. For example, in the United States, small businesses that use the Internet extensively in their operations are expanding 46 percent faster on average than businesses that do not use the Internet [10].

The global financial and economic crisis of 2008 was one of the specific reasons for the expansion of small business activities on the Internet. Despite the fact that during the crisis there was a tendency for the general activity to decrease, the activity in this area did not decrease. This situation is explained in such a way that some young professionals started to start their own business in the conditions of decrease in business activity and reduction of jobs. The fact that starting a business on the Internet does not require large funds has increased the attractiveness of online sales for both small and large business entities. As a result, taking into account the wide range of opportunities for selling goods and services, the role of the Internet in sales has become more active [11].

Online trade is gradually becoming an integral part of the global economy. However, this new direction is developing at different rates in macro-regions. The absolute leader of this segment is the Asia-Pacific region. In terms of Internet sales turnover, this region (especially at the expense of China) lags behind the North American region by two times. This trend is mainly explained by the fact that it is happening due to the increase of economic activity and information in the developing countries of Asia [12].

If we analyze the development indicators of the e-commerce market by the end of 2019 among the world's leading countries, we can see that China and the USA are clearly leading in the field of e-commerce (Figure 3).

Analysis shows that the Chinese and US markets are almost 10-15 times larger than the market sizes of other developed countries. The wide development of e-commerce in China and the fact that China has become a world leader in this field are of great importance due to the country's population and the breadth of its Internet network coverage. If we think from a logical point of view, there is an inextricable connection between economic development and the development of electronic markets, that is, electronic trade is widely developed mainly in developed countries. This situation is not by itself, because in the modern world, economic development and electronic markets complement each other, if necessary, one gives the other development strength and serves as a unique factor. It is also confirmed by the data presented in Figure 7 that the centers of development of e-commerce belong to countries that are locomotives of the world economy. At the same time, in 2020 , if we look at the growth indicators of e-commerce in these countries , the highest growth rate was observed in India (32 percent). In addition, we can see that China (27 percent), Russia and Canada (21 percent), South Korea (18 percent) and the United States (14 percent) have relatively active growth rates of e-commerce volumes.

According to forecasts of international experts, a significant growth of the global market of electronic trade will be observed in the next few years. In particular, the analytical group of the "eMarketer" company predicts that [14]in the near future the share of electronic trade in world trade will increase from 8-9% in 2015 to 12%. The global turnover of e-commerce will reach 5 trillion by 2022. May exceed USD.

As mentioned above, the most important factor in the development of the global e-commerce market is the increase in the number of Internet users and the expansion of the coverage of mobile Internet (at the expense of tablets and smartphones). It is also necessary to take into account the trend of digitalization of global society and national economies against the background of such development of electronic trade.

Analysis shows that China will continue to lead the e-commerce market in the near future as it is today. One of China's key features in this market is retail operations and their exports. Along with China, developing countries such as India (24 percent), Indonesia and South Korea (over 20 percent growth) will further increase their activity in e-commerce. The development of e-commerce in these countries is strongly influenced by demographic conditions (population) and the expansion of the Internet. The markets of developed countries (Japan, Germany, Great Britain, USA) will also continue to be electrified, and especially mobile sales will be an additional impetus.

IV. DISCUSSION

The development indicators and forecasts of the general market of e-commerce, we can see that e-commerce is one of the most promising sectors in the world economy. There is no doubt that electronic trade mechanisms, from global trade to retail trade, will become more and more active. In accordance with this trend, it is appropriate to develop economic policy directions and marketing strategies to ensure the competitiveness of national economies. The results of the study of trends and directions of development in the world market of electronic trade show that in the context of the global economic crisis, national economies should focus on the wider use of information and communication technologies as the main direction of their economic policy.

Conclusion

Modernization of the e-commerce infrastructure, including improving the coverage and quality of the Internet throughout the regions of our country, increasing the security of electronic payments, as well as introducing an e-commerce system (electronic hypermarket) for simplified access to the e-commerce market for a wide range of consumers and retail enterprises it is necessary to do. Strengthening measures of personnel training in the field of e-commerce, e-marketing and digital technologies in general. On this basis, by achieving national technological development, strengthening the position of the national economy in international competition.

References

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Copyright

Copyright © 2023 Baymuradov Shokhrukh Makhmudovich. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.