The finance Ministers of the G8 - the world's seven leading developed countries plus Russia - which met in Birmingham last weekend has established special committees to monitor and report on the impact of electronic commerce.

Ministers from the seven have already argued for the removal of legal barriers and for a tax regime that limits avoidance and evasion while not stifling business.

IT in the Global Economy was examined at a seminar organised by Glasgow Development Agency this month and led by Frances Cairncross, author of The Death of Distance, a study of the economic and social effects of the global communications revolution.

Industry analysts forecast that world-wide business over the Internet will rise to between $200bn and $300bn by 2001 when 245,000 companies in Europe and 640,000 in the US

will be conducting business-to-business electronic commerce.

An overwhelming majority of 100 top UK companies expect electronic commerce to increase their sales within three years, according to a survey by accountants KPMG. Almost a third believe sales over the Internet are currently more profitable than traditional sales channels.

Half of the 380 chief executives surveyed by Price Waterhouse thought electronic commerce would significantly change their businesses and another 20% believed it would reshape competition in their industries.

''For Scottish companies prepared to embrace new technology, there could be massive opportunities to break into new markets,'' said GDA chief executive Stuart Gulliver. ''Large and small companies can now offer goods and services to more customers, any place and time.''