The idea of electronic commerce, of doing business over the Internet was born through the efforts of many in the industry who were inventing the technology and the concepts. This brought the issues of public policy squarely into the information technology industry and profession. Electronic trade challenges many of the basic concepts of national sovereignty. Governments like to regulate what comes into their territory. This is an exercise of their legitimate power, it is part of being a nation, part of maintaining the central values of their culture and language.
Governments derive revenue from goods shipped into their territory.
With electronic trade, intangible goods and services worth increasing millions of dollars are being transmitted across nation boundaries without any government awareness. This is creating substantial political anxiety among political leaders. Most political leaders are recognizing the substantial benefit that a global information economy will bring to their own countries. But they are reacting in a wide variety of ways. Fundamental to the issue of openness to the Internet is the technical and economic status of the country's basic telephone system.