Electronic Commerce and International Trade of Pakistan

The international trade theories assume complete information on demand, supply, prices, product specification and technologies but such assumptions generally do not hold. In particular information is inadequate for both the importers and exporters to make optimal choices. Obviously countries with elaborate information mechanism move closer to their export and import potential than those who lack such mechanism. It is therefore, no wonder that the governments help producers in organising exhibitions, fairs etc for introducing their products. The advent of information technology, e.g. e-mail, Internet and Web sites, provides easy access to information. It provides an opportunity to introduce products and assess the demand for the products and at the same time allows importers to reach the minimum cost source. This also allows the producers to acquire technologies and explore the possibilities of subcontracting. Needless to add that the expanded net work affects disproportionately different producers and different countries; it depends on the intensity of use of electronic commerce