CONCEPT OF ELECTRONIC TRADE IN MODERN INTERNATIONAL ECONOMIC SCIENCE

Abstract

The dynamic evolution of electronic commerce in the 21st century hinges on various factors, including technological advancements, evolving competitive landscapes, and shifting consumer preferences. In this era, the development of new technologies within globalization stands out as a pivotal driver of efficiency amidst global competition, guiding production toward consumer-centric orientations. In today's economic landscape, the Internet serves as an international marketplace where individuals engage in various activities such as buying and selling goods, conducting financial transactions, accessing information, consuming news, advertising, pursuing education from around the world, and communicating with others. Given the breadth of these functions, the exploration of electronic commerce remains highly pertinent. The article examines the concept of electronic commerce within contemporary international economic discourse. It highlights electronic commerce as a supplementary catalyst for the globalization of the world market. Moreover, it identifies three stages central to consumer decision-making: information search, comparison of alternatives, and final choice driven by information exchange. The article explores various definitions of terms such as «electronic trade», «electronic commerce», and «digital trade». It concludes that e-commerce plays a crucial role in reducing the cost of intermediate goods by granting manufacturers access to broader markets and a more excellent pool of potential suppliers. Furthermore, it suggests that the evolution of electronic commerce necessitates the adaptation of traditional theories of international trade to accommodate new realities. E-commerce effectively diminishes trade barriers, enabling even less productive enterprises to engage in exporting activities. Meanwhile, information and data emerge as pivotal elements in production, prompting a reassessment of conventional perspectives on the roles of capital and labor. The digital trade era encompasses digitally conducted trade transactions and extends to traditional trade practices and trade facilitated through global value chains. This phenomenon fosters the proliferation of digital connections and expands access to foreign markets for enterprises that previously lacked such opportunities.