online business assignment help in australia

online business assignment help in australia

The Impact of Online Business on the Australian Economy: A Comprehensive Analysis

1. Introduction to Online Business

Online business can take many forms: firms can have a website for information provision or online sales, or use email for communication and marketing purposes. However, “online business” is generally understood as the use of information and communications technology (ICT) and digital technology in regard to a business transaction or other business-related activity, including the provision of information, customer service, and electronic purchases/orders. Business conducted online ranges from the information provision only web presence to accepting orders or payments over the Internet. Hosted software services to businesses also result in online transactions, with the business accessing software applications over a network, generally the Internet.

Australia has experienced a rapid evolution of firms conducting business online, both in the creation of new online-only businesses and traditional offline businesses expanding into online services. Little is known, however, about the actual impact these types of businesses have had on firms’ sales, costs, and overall performance. This study aims to provide a comprehensive review of recent evidence on trends and patterns in the volume and value of online business activity in Australia and to draw together existing direct and indirect indicators of the existence and impact of online businesses on the Australian economy.

2. The Growth of Online Business in Australia

In broad terms, an online business is one that uses the internet for marketing and/or the conveyance of orders and receives the revenue that way. Such a business does not have to host its own website, although it may choose to, of course. Instead, it may advertise on a third party’s website or in a directory listing, where its products or services are described in some detail and a phone number, a fax number, a postal address and/or an email address are given, through which orders are made, sometimes automatically. Also included here is any Australian organisation that uses the World Wide Web for communicating with customers/clients in a non-commercial way. This report discusses the increasing importance of online business to the Australian economy. In developing this analysis, the author draws on the following sources of data: Apple Computer, Australian Bureau of Statistics (various issues), the Australian Communications Authority, Bureau of Tourism Research (1997), CNN (1998), Forrester Research (1999), International Trade Centre UNCTAD/WTO (1999), Local Information Consulting (1999), Morgan Stanley Dean Witter (1998), Nua Surveys (1999), Visa International, the World Tourism Organisation and many company reports.

3. Challenges and Opportunities for Online Businesses in Australia

The structure of this paper is as follows. Section two provides an overview of the international and Australian evidence concerning the benefits of internet usage. Section three identifies the regulatory, legal, and cultural barriers that may inhibit the creation of certain types of online business roles in Australia. Section four explores the impacts of a range of issues relevant to businesses involved in online business transactions and may therefore influence their success. Section six concludes the paper.

The success of online businesses is influenced not only by Australian economic conditions, but also by the legislative and regulatory environments faced by industries. The analysis of the challenges and opportunities for Australian businesses transacting online is an important area in which there is little empirical evidence. Although there is some industry-specific literature evaluating the internet’s impact, determining the industry-wide issues that online businesses face is fundamental to understanding where Australian government policy and resources need to focus in helping Australian businesses capitalize on the internet’s potential. This paper takes the first steps in analyzing these diverse challenges and opportunities for online businesses and suggests potential research directions required for a more complete understanding of this emerging area.

4. Government Policies and Regulations Affecting Online Businesses

4.5 Conclusion The report shows that the impact of online businesses on the Australian economy is extensive. The impact is not only related to the overall increase in longevity and world market share of Australian businesses but also to the increase in customer choice and availability of services. It also demonstrates some influences across different industries. As such, the inquiry into policies and regulations aimed at improving the trade and services of online businesses is comprehensive. It contains several suggestions to influence government policies and regulations.

The committee had, from submissions frequently, including the Australian Competition and Consumer Commission and the Australian Banks’ Association, voiced the necessity for legislative support for global legal standardization. They had indicated that the World Trade Organization treaties, with participation from over 200 countries, provided global legal standardization.

4.2 Electronic Transactions Law The uniformity and certainty of legal provisions, particularly in regard to e-commerce, are crucial in influencing the level of business confidence in developing online trading. In November 1998, the Electronic Transactions Bill was prepared to provide national standards and uniform provisions for the reliability of electronic transactions by ensuring that electronic communications have the same legal status as traditional paper-based transactions. The Bill enhanced investor confidence by ensuring consumers and businesses have national uniform laws governing electronic commerce while promoting the development of the full potential of electronic commerce within Australia.

4.1 Telecommunications Infrastructure The significant constraints to the development of online trade are the available telecommunications infrastructure and the associated regulatory environment. In the call for submissions on online business, the February 1999 Issues Paper prepared by the Australian Competition and Consumer Commission (ACCC) explicitly requested evaluations on the development of communications infrastructure and regulation of telecommunications and the Internet. Such evaluations were called for among other market, legal, taxation, and R&D issues. The lack of continuous telecommunications infrastructure in regional and remote areas of Australia may thus impede the development of online trading in Australia.

The impact of online business on the economy depends upon the government’s policies for the development and regulation of online businesses. The House of Representatives Standing Committee on Industry, Science and Resources Inquiry Report “Online” identified “the four critical enablers for the successful growth of e-commerce, including supporting communications infrastructure, reducing transaction costs, increasing consumer and business adoption, and establishing trust between trading partners.” Consistent with these enablers, the enabling role of the government can be classified into several policy areas, and hence the constraints can be identified.

5. Conclusion and Future Trends

The Committee raised Australia’s ICT infrastructure, legislation, free trade agreements, and government responsibilities as its top-of-mind issues. Specifically, it addressed the effectiveness of the Department of Communications, IT, and the Arts (DCITA) in both promoting debate and in coordination across the ICT sector as well as identifying any gaps that might exist. The Department of Foreign Affairs and Trade (DFAT) and the Department of Immigration and Multicultural and Indigenous Affairs (DIMIA – now the Department of Immigration and Citizenship or DIAC) were cited in respect of continuing migration potential and off-shore recruitment. In effect, this was the first responsible and representative inquiry to investigate in some detail whether the groundswell of interest in e-business applications and adoptions could have a significant and material effect on the Australian economy.

In 2007, the Australian Government announced the terms of reference in respect of the Senate Economics References Committee which was to inquire and report on the impact of online business to small firms, corporations, and government. Specifically, the inquiry aimed to ascertain the potential impact that online business had on the future economy, productivity, and global competitive position of Australia. The Committee focused specifically on the ability of small Australian firms to engage in export using data, voice, commercial, and information technologies both currently and in the future. The Committee sought to examine the extent to which corporate and government purchasing patterns and behavior mirrored the increased use of technology as well as the adoption and implementation of new and emerging business practices and relationships.