1. Global e-commerce and digital trade are quickly becoming key issues in the future of international trade. There

are no clearly accepted definitions of the two terms. However, global e-commerce generally refers to online transactions for the cross-border sale of goods or ser-

vices. Global digital trade, on the other hand, seems to refer to international transactions in which the goods, services, or information are delivered online. Thus, global digital trade might include something as simple as an Internet search, search engine advertising, or social media. Or it might include the international online sale and delivery of books, films, music, financial and professional services, online education, and many other examples. For instance, in the health care industry, it might

include the reading of an x-ray or MRI for a patient in the United States by a physician-radiologist in India. It also includes the cross-border transmission of communications, international transportation management, the online transfer of financial services, online collaboration in research and business, and the digital infrastructure connecting business to business, such as international supply chain management.

1.Explain how the Internet has transformed international business for small and medium enterprises.

2.E-commerce and digital trade are creating new challenges for businesses and governments alike. How do you think countries will cooperate on issues such as

cybersecurity, safeguarding of cross-border credit card payments, nondiscrimination, and freedom in the location of Internet servers? Explain these issues,

and discuss how they might be addressed in international legal agreements.