Final answer:
E-commerce is the activity of buying and selling goods and services online, leading to increased global competition and the emergence of digital goods. It is significant in the transition to a postindustrial economy, where technology and globalization have redefined market dynamics and how industries operate.
Step-by-step explanation:
E-commerce, short for electronic commerce, refers to the buying and selling of goods and services using the internet, and the transfer of money and data to execute these transactions. It has been a driving force in the global economy, introducing a vast improvement in communications technologies. Globalization and technology advancements, particularly in the development of the internet, have allowed consumers to order products from all over the world, increasing competition for local retail businesses and also transforming business supply markets through business-to-business websites.
With the growth of the Internet, industries such as music and film have evolved from producing physical goods like CDs and DVDs to producing digital goods that are streamed or downloaded at a lower manufacturing cost. E-commerce enables a postindustrial economy where information and creativity are commodities. This is particularly evident in the way that consumers and businesses can interact digitally from any location worldwide, creating an interconnected global marketplace.