1 - Digitisation and Its Terminology

Summary

This chapter explains the phenomenon of digitisation and the terminology that comes with it. It provides an insight into how digitisation has changed the way in which business is conducted. The chapter elaborates on the different kinds of digital platforms and how they have allowed for the creation of new business models. The term ‘digital products’ is explained and the chapter elaborates on the classification debate surrounding this term. WTO Members have taken divergent positions on whether to classify digital products as either goods or services. This chapter explains the EU-US juxtaposition in this debate and provides insights into the best way to approach the classification of these products. The chapter additionally elaborates on data flows and their increased prevalence in international trade. The relevance of data flows to the assessment of digital services trade is explained. Finally, the chapter provides a brief introduction into the functioning of the Internet, to provide readers with an understanding of the technical background to the phenomenon of ‘digitisation’.