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40 Sharma and Gupta<br />
valuation would be difficult to determine. More importantly, it is argued that duties<br />
will crush the development of e-commerce and stunt its growth. If implemented in<br />
some countries, it would simply drive business offshore and on-line transactions<br />
would simply take place in a state or country where there is no such tax. Since trade<br />
policy - like tax policy - is based on such distinctions, governments may find it<br />
difficult to determine jurisdiction and tariff revenue rights. Moreover, the laws and<br />
regulations that a consumer relies on for protection at home may not apply in the<br />
merchant’s country. Indeed, in some quarters, there are concerns that the scope for<br />
the Inter<strong>net</strong> to transcend national boundaries could emasculate the ability of<br />
regulatory bodies to fulfil their objectives. Thus, there is a need to update regulatory<br />
frameworks and strengthen co-operation between regulatory bodies to achieve the<br />
goals of economic regulations without jeopardizing the efficiencies likely to be<br />
associated with the growth of e-commerce (Penbera, 1999; Anonymous, 2000).<br />
Impact on Employment and Labor Policy<br />
The growth of e-commerce is likely to have both direct and indirect impacts<br />
on labor markets as well as the composition of employment. Since e-commerce<br />
may create more knowledge-based products, it is likely to drive widespread<br />
changes in the labor market, shifting the composition of workers required to<br />
produce and deliver a product or service (Anonymous, 2000). There would be shift<br />
in kind of skills needed. Faster rates of innovation and diffusion may also be<br />
associated with a higher turnover of jobs. This may create more turbulence, as<br />
workers would need a skill upgrade from time to time. This may result into change<br />
in swift labor policies for reallocation of labor to the changing needs of the economy<br />
(Anonymous, 2000).<br />
ADVERSE BUSINESS EFFECTS<br />
While e-commerce has enhanced business effectiveness and efficiency, it<br />
has created some adverse effects as well. This section discusses major adverse<br />
business effects of e-commerce.<br />
Emerging Monopolistic Trends<br />
Since e-commerce transcends geographical boundaries, many big firms with<br />
known brands may not only expand their markets, but may also enter into new<br />
business activities across the broad spectrum of business activities. This may help<br />
to reduce the costs and prices, but it would have a greater danger of creating a<br />
monopoly of e-commerce by a few corporations or <strong>net</strong>works of corporations.<br />
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