Technology in global markets: e-commerce, digital marketing, supply chains and cyber risk: WACE BME Unit 4
“Explain the role of technology in global markets, including e-commerce, digital marketing, communication, supply chain and operations technology, and assess the benefits and risks of using technology to operate globally”
Technology lets businesses sell and operate globally through e-commerce, digital marketing, cloud communication, supply chain tracking, automation, data analytics and online payments. Benefits include wider reach, lower costs, better decisions and competitive advantage. Risks include cyber attacks, privacy law, costs, dependence on platforms, outages and job impacts, so technology must be managed as part of strategy.
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What this dot point is asking
Unit 4's Management content includes the role of technology in global markets. You need to explain how technology helps businesses reach customers and run operations across countries, and weigh its benefits against its risks. Study resources built on the syllabus list technology in global markets under Unit 4 Management; check your school's course outline for the exact syllabus wording.
The answer
How technology supports global business
- E-commerce: own websites, apps and global marketplaces let a business sell anywhere, around the clock.
- Digital marketing: search, social media, influencer and email marketing targeted by country, language and interest.
- Communication and collaboration: video conferencing, cloud storage and shared software connect teams, suppliers and partners across time zones.
- Supply chain and logistics technology: inventory management systems, barcodes, RFID and GPS tracking, and automated warehouses.
- Operations technology: automation, robotics and computer-aided design improve efficiency and quality.
- Data analytics and artificial intelligence: forecasting demand, personalising offers and pricing.
- Online payments: multi-currency payment systems simplify international sales.
Benefits
- Access to global customers without physical stores.
- Lower costs per transaction and per customer reached.
- Faster, better decisions from real-time data.
- More efficient, transparent supply chains.
- Competitive advantage through innovation or better customer experience.
Risks and challenges
- Cyber security: hacking, ransomware and data breaches.
- Privacy and consumer law: different rules in each country.
- Cost: investment, upgrades and skilled staff.
- Dependence: reliance on third-party platforms, which can change fees or rules.
- System failures: outages stop sales and operations.
- People impacts: job losses from automation, the need for retraining, and resistance to change.
- Digital divide: some markets have limited internet access or use different platforms.
A Geraldton seafood exporter sells rock lobster to Asia.
- Supply chain: temperature and GPS trackers in shipments show real-time conditions, so the business can prove freshness and act on delays.
- Communication: daily video calls with importers in Hong Kong and Shanghai.
- Data: sales data shows peak demand around festivals, so harvesting and shipping are planned ahead.
- Risk: a ransomware attack could stop its order system, so it keeps offline backups and trains staff to spot phishing emails.
Listing technologies without linking them to the business's global operations.
Only giving benefits. "Evaluate" and "assess" need risks and a judgement.
Assuming technology removes all barriers. Tariffs, regulations and cultural preferences still apply.
Practice questions
Original practice questions graded from foundation to exam level, each with a full worked solution. Try them before revealing the solution.
foundation3 marksOutline three ways technology allows a small Australian business to sell to customers overseas.Show worked solution →
- E-commerce: an online store or marketplace listing lets overseas customers buy at any time.
- Digital marketing: targeted social media and search ads reach customers in chosen countries at low cost.
- Online payments and logistics: international payment services and courier integrations handle currency conversion and shipping.
Marking guide: 1 mark per way outlined.
core4 marksExplain two risks for an Australian online retailer that stores the personal data of overseas customers, and one way to manage each.Show worked solution →
Cyber attack or data breach. Hackers may steal customers' personal and payment details, causing financial loss, legal action and damage to trust. Manage: encryption, multi-factor authentication, staff training and regular security testing.
Privacy law compliance. Different countries have different privacy laws (for example the European Union's GDPR, as well as Australia's Privacy Act), and breaches can lead to large fines. Manage: legal advice, clear privacy policies and collecting only the data needed.
Marking guide: 1 mark per risk explained, 1 mark per management strategy.
exam8 marksEvaluate the use of technology by an Australian wine producer seeking to grow sales in China and the United States.Show worked solution →
A strong response:
- E-commerce and marketplaces: selling through its own website and large overseas marketplaces reaches millions of customers without physical stores.
- Digital marketing: country-specific social media, influencers and translated content; data shows which campaigns work.
- Supply chain technology: temperature tracking and inventory systems protect quality and reduce losses; integration with importers and distributors.
- Communication: video calls and cloud collaboration with distributors across time zones reduce travel costs.
- Benefits: wider reach, lower costs per customer, faster feedback and better decisions.
- Risks and limits: platform fees and dependence on overseas platforms; different digital ecosystems (for example platforms used in China differ from those in the US); cyber security and privacy rules; alcohol advertising and import regulations still apply; technology cannot remove trade barriers or tariffs.
- Judgement: technology is essential for growth in both markets, but must be combined with local partners and compliance with each country's rules.
Marking guide: 4 marks for explained uses linked to the business, 2 marks for risks and limitations, 2 marks for a justified evaluation.