2 days ago, my friend bought a Lexmark E120N mono Laser printer in KLCC’s pc fair with the price of RM 290 (approx. USD $82). Last night while I was planning to sell a mysterious stone on ebay, curiousity drive me to compare the price of this machine. After putting much effort, I found the lowest price on NewEgg.com, that cost you USD$ 120.99+13.91 US only delivery fees (approx. RM 571). Soon after this, I used RM 290 plus local cheapest shipment that cost RM 120 to US, total USD 114. Even I used non-discount price RM 399, it still end up with USD 142, delivery included!!

Then I start wondering those theory in The World is Flat and The Long Tail. e-Business has gone through various stages close to the evolution of trade theory format. Why? This story make me wonder this thing: Except physicless,special edition books, arts and unique gadgets, goods like electronics, machines,spare parts, office equitment, and furniture that put on e-business are limted to dosmestic market.

This phenomena is believed due to the transportation fees, timeline, and trade barriers. Use above example, if I am a e-trader, then I will bound to pay export and import duties charged by both countries. At the end, the price will very close to NewEgg or perhaps much higher.

So, did they really flaten down the price to end-users? My point here is:

1. Globalization only direct influence service industry, manufacturers and suppliers.
2. When it comes to lower level, end-users won’t able to enjoy much or non of the benefits directly due to the control of the domestic and national trade barriers. *Retailer hardly capable to fight in global market in large items, mainly due to high transportation fees.
3. e-business in US, Japan, and Korea includes foods, snack, electronic, and so on. But all of them only price competitive in their country, and most of them can’t even affort to go beyond the border. So, market become larger?yes, but sorry you still domestic business in fact.

As a result, those things available in internet mostly small, e-format, unique, precious, and so on that can sell world-wide. I doubt if you can own the international market by selling online.