Question

Which of the following statements about e-commerce is true?

E-commerce reduces competition.

E-commerce enhances the role that geography plays in retailing.

E-commerce has an irrelevant effect on retailing.

E-commerce increases the pressure on firms to lower prices.

Answer 1

The second option is true.

E commerce plays a key role in enhancing the geography plays in the cease of retail business. E commerce helps to enhance the scope of every business. The major limitation in retail business is that the firm has only limited geographical access. The firm is able to offer products only within a particular locality, state etc. But in the case of e commerce the products can be offered across the geographical boundaries. Here the firm can extent the market and able to increase sales.