1. How was Alibaba able to become the leading online trading platform in China? Think about standards, network effects, and crossing the chasm.

2. Apply the CAGE distance framework (see Exhibit) to help explain why eBay was not successful in the Chinese market. Why do you think Amazon has only 1.9 percent market share in China (see Exhibit), while it holds some 26 percent market share of the $226 billion U.S. e-commerce market? What general conclusions do you draw?

3. Review the integration-responsiveness framework shown in Exhibit 10.5. Which global strategy positions would you recommend U.S. e-commerce companies such as eBay, Amazon, and others pursue, and why?

4. Does your recommendation in question 3 support the notion that the “world is flat,” or would “semi-globalization” be a more accurate depiction? Support your arguments.