What Are Some of the Issues That Need to Be

question 75

Essay

What are some of the issues that need to be addressed when setting up for global e-commerce?

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Definitions:

Substitution Effect

The change in consumption that results from a change in the relative price of goods, leading consumers to substitute one product for another.

Output Effect

Refers to the impact on the output level of a firm when it changes the price of its product, often analyzed in the context of monopolistic competition and oligopolies.

Substitution Effect

The economic theory that as prices rise, consumers will replace more expensive items with less costly alternatives, thereby altering the demand for these goods.

Wage Rate

The amount of money paid to employees for their work or services, typically expressed per hour or year.