Final answer:
Universal e-commerce standards streamline the consumer search process, increasing market accessibility and competition, which leads to a wider selection of goods and potentially lower prices. However, international trade rules do not require uniform safety standards, highlighting a need for consumer diligence.
Step-by-step explanation:
The fact that e-commerce is conducted on the basis of universal standards indeed reduces search costs for consumers. By employing common standards, e-commerce platforms enhance consumer accessibility to a wide array of products and services from different parts of the world, fueling a more competitive environment. This not only promotes a broader selection of goods but also tends to lower prices. Moreover, reductions in tariffs, quotas, and improved transportation and communication media have raised awareness of global products, further contributing to an informed consumer base and more efficient market dynamics.
However, it is important to note that the rules of international trade do not require all nations to impose the same consumer safety standards, which can result in different levels of product quality and safety assurance across borders. Therefore, while universal standards in e-commerce can simplify the search and comparison process for consumers, care must be taken to ensure that the products meet the expected safety criteria of the consumer's home country.
In summary, technological advancements and globalization have fostered the business-to-business and consumer markets, making it easier for buyers and suppliers to connect worldwide, thus expanding market competition and reducing consumer search costs.