Final answer:
E-commerce is the electronic buying and selling of goods and services over the internet, influenced by technological advancements and globalization, and it plays a major role in the modern information economy.
Step-by-step explanation:
In order to manage for information technology, companies rely on e-commerce, which refers to the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet. This business model has become a key component of the modern economy as it leverages technological advancements and the globalization of markets. E-commerce includes both online retail as well as electronic transactions between businesses, often referred to as 'business-to-business' or B2B transactions.
The growth of e-commerce is a direct consequence of the rapid increase in computer use and communications technology, contributing to the shift towards an information economy and changing how markets are defined. Moreover, digital goods such as music, books, and movies are now more commonly streamed or downloaded, which has significantly reduced physical manufacturing costs. Additionally, telecommunications advancements have facilitated the ease and cost-effectiveness of long-distance production and sales connections, further bolstered by international trade agreements.