Role Of Internet In The Economic Growth
By: Sana Haroon
Access to the internet across the world has fundamentally changed the way people interact, socialize, communicate, work and share ideas and information. People interact with each other and access information without facing any hazard, not even the cultural or language hazard. Certified Translation Service Provider provides the services like Russian translation services for labeling to make it easy for people to remove the language barrier.
The internet just as the way the development of the wheel, electricity, and radio imply has revolutionized the way people interact but also from an economic perspective the way countries grow.
More so now more than ever there is the dynamic link between the internet and economic growth and stability. The internet has allowed individual businesses and governments large and small to embrace new ways of doing business and has opened new doors and how consumers search and access goods from around the world.
The rise of the bricks Brazil, Russia, India and China in countries like Turkey, Malaysia, and South Korea has been affected by the internet which has fundamentally changed their economies, providing globalization instead of isolationism and passing international trade across countless industries. If the internet was the national economy it would rank in the world’s top five.
Behind the United States, China, Japan and India no surprise because there are two billion internet users worldwide with over 75% of them coming from developed countries in Europe, North America and Asia. The internet accounts for 21% of GDP growth in the last five years and has created 2.6 jobs for one job lost and it is an important vehicle for capital for allowing exchange of almost 8 trillion each years in ecommerce.
As a testament how businesses and users have become depending on the internet. Now days all companies require Online Translation Services Company to provide them with services like Russian Labeling translation services. The Professional Translation Service Provider helps the companies to translate any kind of business document or advertising into languages they required. Over two third of businesses in developed countries have a websites and over two billion people have email accounts with Gmail, Yahoo and hotmail.
Even though the internet is very young, the internet accounts for 6 percent of GDP in advanced countries because there are the critical elements for growth. In the mature developed economies the internet accounts for 10% of GDP growth over the past 15 years which is driven by the aspect that has on small medium enterprises. Several studies have found that for every 10 percent increase and the people who have internet access, a nation GDP rises by 1%. The internet maturity and usage in various countries also correlates with rising living standards and growth in per capita GDP. Over the last 15 years it has created an increase in real GDP per capita five hundred dollars.
Such as in Africa farmers and the sellers are using the internet for payment, such as PayPal to allow you for the smoother exchange of the capital and goods, and prevents corrupt local of shells by allowing the exchange of a secure link between buyer and seller. This ensures that the money changes hands safely well.
For example, its fine furniture weaver in Malaysia can connect with potential investors in United States or Mexico by creating a profile and get loans from around the world, to continue the business. On website for a kick starter many small businesses do funding to raise money so they can turn ideas and concepts into a final product.
The internet has revolutionized the way people interact on both global and local level exchange. Different researches predict that the internet will generate nearly nine trillion dollars in annual sales by 2020.
A study conducted by General Andric compare the internet to the industrial revolution of eighteenth and nineteenth centuries. When innovation in manufacturing transformed the way you do business and interact with machines. General Andric concluded that internet over the next 20 years could add as much as 15 trillion to the global gross domestic manufactured goods. Approximately the size of today US economy additional estimates of value of 19 trillion and profits and cost savings over the next decade for companies that can harness services.
Several market disruptions are driving internet relevance, mobile based and devices, cloud base applications, and social media. The internet economy effects the four main phases of daily life.
- People: as the internet evolves, people would be connected in more relevant valuable waits.
- Things: physical items such as sensors consumer devices and enterprises assets connected to the internet and sense more data and become context aware.
- Data: rather than simply reporting broad data connected things will drive superior level informational data back to machines, computers and people for further evaluations and decision making.
- Process: with the process the right information can be delivered to the right person at the right time in the appropriate way.
The internet also generates the great deal consumer surplus by connecting consumer’s across the world access to the more services and goods at a lower cost. For example, a consumer surplus generated by the internet in 2009 was close to 30 billion dollars in the United States. The internet reaches around the globe. Many emerging nations are taking advantage of this more level playing field and are closing on the digital divide gap with developed economies. Emerging nations are making efforts to promote competition and regulatory liberalization by opening their economies for foreign investment. And reducing trade barriers are foreign goods and services.
The internet is very important because
- It reduces the cost of much domestic and foreign transaction to produce and distribute goods and services.
- Increases management efficiency by allowing companies to better communicate.
- Increases competition by making prices more transparent and broadened potential markets for both sellers and buyers.
- Finally increases consumer choice convenience and satisfaction.
Over this past decade, people have become very reliant on the internet using it from shopping on Amazon, wasting time on face book, banking and finance and so much more. In a recent study it was found that simply increasing downloads speeds from 0.5 megabytes to 4 megabytes. The internet has completely changed the worldwide economy.