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ries. Due to the unbalance of resources, such as finance and talents, “small and medium-sized foreign-trade enterprises cannot compete with giant companies” (Jiao et al, 2011). However, competitiveness of e-commerce is fairer (Jiao et al, 2011). For instance, the interpersonal relationship is really significant in the past. Apparently, in this case, giant enterprises has an absolute advantage. The client information is easier to get for giant companies. But it is effortless to search information at B2B platform. And then the sales promotion can be made by e-mail. As a result, small and medium-sized enterprises would get more trade opportunities in e-trade. In developing countries, small and medium-sized enterprises are the majority of foreign trade enterprises, thus, the e-commerce would be really helpful.

Nevertheless, maybe some people are thinking that there are some existing challenges cannot be ignored. Udo (2001) argues that internet security should be paid highly attention. The computer hacking is a serious problem (Udo, 2001). In e-commerce trade, businessmen communicate or negotiate by emails. And important information such as client information and quotation is often stored in computers. If a company is hacked and documents are missing, the company will suffer heavy losses. Moreover, Murphy contends that payment fraud is another potential risk (cited in Udo, 2001). Along with fresh transaction, new fraud measures emerge in endlessly. For example, criminals may send emails pretending to be from the suppliers’ bank, and then directing people enter account and password. In traditional trade, computers and internet are not necessary and payment online is impossible, as a result, this kind of fraud only exists in e-commerce trade. Therefore, merchants adopting e-commerce would take more risks.

Although the cyber crime cannot be completely avoided, the threat would be reduced by effective government supervision. A policy which the Indian government enforces could serve as a Reference. Indian government has passed the Information and Technology Act to make the process of e-commerce safe and reliable by imposing heavy punishments on criminals (Ray, 2011). Besides, the government has opened Cyber Crime Police Station to supervise the transactions of e-commerce (Ray, 2011). These policies increase the cost and difficulty of crime because of heavier punishments and strict inspection, thus more potential offenders will be deterred. and the cyber crime rate would fall. Referencing this sample, other developing countries could formulate regulations in accordance with national realities.

Another problem is customer trust. Reichheld and Schefter states that the transaction online has more risk than offline because buyers cannot assess suppliers by examining goods, warehouses, etc so that it is hard for salesperson to win the trust when doing business online (cited in Gefen, 2002). If importers do not trust suppliers, importers will hesitate to place orde