eBay is one of the best examples of a global economy, with very few restrictions, where anyone from anywhere can join in on the global economy that is eBay.
eBay is an example of a global economy where anyone can participate and create their own business…
I find myself buying clothes from Thailand, flash drives from Hong Kong, and phones from Australia. No longer am I restricted to the local markets, but allowed to spend my money anywhere (as long as I pay shipping).
eBay effects local businesses as well…
eBay has localized it’s sites, with eBay Germany, UK, etc. but even still, if we see something selling in the UK for $10 when we have to pay $20 to get it here, we’ll most likely buy it from the UK. This will cause local prices to change as well. If everyone is buying shirts from the UK, demand for shirts at your local stores will be lower thus causing them to lower the price.
eBay is unrestricted buying and selling for any business
You rarely have to worry about taxes on eBay, their are few obstacles to creating a new business and you can have a new business up in minutes from any location. You can sell your old fan, records, even your cheerio if you see fit.
Prices are determined by demand. If you don’t want to pay $10 for an item, you won’t bid on it. But maybe someone else will? What you end up with is with items priced at demand and supply.
Confused? If this article seemed to be confusing, let me know. It’s been a year since my last international economics class.
