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Risk management for electronic commerce between Japan and China

Published: 25 March 2004 Publication History

Abstract

This study aims at realization of electronic commerce (EC hereunder) through the Internet between Japan and China which have different systems. For this purpose, we have established the China Hosho Network (CHN hereunder) consortium which consists of universities and private research organizations. The consortium operates with an information disclosure policy, and is conducting a study on the credit guarantee system which will play a key role in facilitating the growth of EC between Japan and China [1].In EC, business is basically conducted on a credit basis; therefore many cases of failure are expected to occur in trade between Japan and China due to the difference in social and commercial systems and customs. Since the current civil codes of China do not provide regulations on international trade, there is a great demand among traders in Japan for establishment of credit guarantee systems for EC similar to damage insurance for international trade [2].This paper will discuss the development of the risk management system for EC between Japan and China, which functions as a credit guarantee system. The risk management system operates for its members who fulfil the terms of the membership agreement. It has a two-tire structure, consisting of risk control (preventive measures) and risk finance (financial arrangements including insurance coverage and/or other financial measures for possible trade failures). The risk control is a quality assurance system which can be realized by inspection before shipment. The risk finance is a guarantee insurance system which was developed incorporating conventional marine and fire insurance for trade. This paper also presents the results of a demonstrative application of the risk management system in order to prove its validity.

References

[1]
S. Tamura, M. Moriyama, Y. Nakagawa, and T. Shimosakon, "Joint Research of Industrial, Government and Academic for Japan-China electronic commerce realization", The 14th national Conference on The Japan Society for Production Management 2.2.4, pp. 92--95, September 2001
[2]
GBDe (Global Business Dialogue on Electronic Commerce), http://www.gdbe.org
[3]
M. Moriyama, T. Shimosakon, H. Jing, Y. Nishino and S. Tamura, "E-commerce between nations of different guarantee system: In case for trading vegetable from China to Japan", The 11th International Conference on Management of Technology, March 2002. (Accepted).
[4]
M. Moriyama, S. Tamura, Y. Nakagawa, and T. Shimosakon, "An experiment report of Japan-China electronic commerce", The 14th national Conference on The Japan Society for Production Management 2.2.6, pp. 100--103, September 2001
[5]
Koi, M. Moriyama, S. Tamura, T. Shimosakon, "A Program in China for China-Japan electronic commerce realization", The 14th national Conference on The Japan Society for Production Management 2.2.5, pp. 96--99, September 2001

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    ICEC '04: Proceedings of the 6th international conference on Electronic commerce
    March 2004
    684 pages
    ISBN:1581139306
    DOI:10.1145/1052220
    Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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    • ICEC: International Center for Electronic Commerce

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    Association for Computing Machinery

    New York, NY, United States

    Publication History

    Published: 25 March 2004

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    Author Tags

    1. electronic commerce (EC)
    2. risk management
    3. trade guarantee

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