This website uses cookies to ensure you have the best experience. Learn more

The Internet Economy: The World's Next Growth Engine

2941 words - 12 pages

| |
|The Internet Economy: the World's Next Growth Engine |
|Starting with the Middle Ages, the story of the human race has been marked by accelerating economic growth. In the 1400s, global per capita income |
|rose at only 0.1% per year, estimates economist J. Bradford DeLong of the University of California at Berkeley. Over the next five centuries, that |
|rate moved steadily upward, finally hitting nearly 3% in the second half of the 20th ...view middle of the document...

| |
|The initial manifestation of the new era is the stunning performance of the U.S. economy in the 1990s. For most of the postwar era, Western Europe |
|and Japan slowly gained ground on the U.S. by adopting U.S. technology and adding their own innovations. In 1970, U.S. per capita income was 31% |
|higher than that of other major industrialized countries. By 1991, the difference had narrowed to only 10%. |
| |
|But with the dawn of the Internet Age, the gap has started to widen again, to more than 22% this year. ''This is historically unique,'' says Luc |
|Soete, an economist at Maastricht University in the Netherlands and Europe's leading expert on the New Economy. ''For the first time in the postwar |
|period, you have growth divergence--the pulling away of the leading technology country.'' |
| |
|The acceleration of U.S. growth is only the opening act of a much larger drama of global economic change--and growth. For starters, the Internet |
|should make many more industries open to globalization. Historically, international trade flows have consisted mainly of goods. Whether it was spices|
|or airplanes, it was far easier to ship goods overseas than services. But with the Internet, it becomes much easier to provide services of all |
|types--banking, education, consulting, retailing, gambling--through a Web site that is globally accessible. ''The Internet is the backbone of greater|
|service trade,'' says Joseph Quinlan, senior international economist at Morgan Stanley Dean Witter. |
| |
|Beyond that, as more and more countries become tied into the global Net, there may well be an acceleration of the rate of innovation. New growth |
|theory predicts that as the size of the global market gets bigger, the rewards for uncovering lucrative new ideas get bigger and bigger. Moreover, as|
|new ideas flow back and forth across national boundaries faster and more easily, everybody will benefit. ''There are lots of reasons to think the |
|Internet will lead to much more rapid diffusion of knowledge,'' says Jonathan Eaton, an economist at Boston University. A study by Eaton and his |
|co-author, Samuel Kortum, has estimated that in the extreme case, if...

Other Papers Like The Internet Economy: the World's Next Growth Engine

The Next Industrial Revolution Essay

707 words - 3 pages I believe that the important conclusion from “The Next Industrial Revolution” is that, as the title suggests, we are going through a major transformation that is comparable to the First Industrial Revolution, and which brought us to industrial capitalism and increased the opportunities for material development. While industrial systems are on the peak of their success, the natural capital on which we all depend on to create economic wealth is

The Next Decade Essay

1195 words - 5 pages THE NEXT DECADE The Next Decade is a book written by George Friedman, and emphasizes The United States’ relationships with other nations. The book addresses some technological and economic problems and well as explaining empires and republics on the rise during the following decade. The Next Decade is a comprehensive and remarkable analysis that encompasses the issues and benefits for being a super power. The United States has unintentionally

Preparing for the Next Century

2825 words - 12 pages future vision of the company, motivating the staff in order to reach the company´s goals and embodying the change. Then, the next step was to reinforce the reputation and image of the brand by creating the HOG, which main purpose was to support enthusiastic and motorcycle customers in order to gain their loyalty. Finally, in the last stage of the process the company reviewed its strategy and defined to maintain its growth in the traditional segment

Women Eutrepranuers - The Next Step

3228 words - 13 pages home makes it an ideal business for those women with appropriate skills. Second, the Internet creates a virtual marketplace in which Mompreneurs can advertise their goods and services. "With the Internet and other modern communications technologies, small and home offices, regardless of their location, can plug in easily to the information-based economy" (Blakely 3).   Internet access appears to be used by home-based Mompreneurs across

Offshoring: the Next Industrial Revolution?

1200 words - 5 pages International Human Resource Management and Organizational Behavior I 29th of March 2012 Offshoring: The next industrial Revolution? Summary The article consists of the idea that the third industrial revolutions is coming within the next couple of decades. Economists believe that this in merely an international business as usual, and that it will improve each nation comparative advantages. This revolution will not include shifts from

Next Chapter: the Unturned Page

539 words - 3 pages Next Chapter: The Unturned Page By Rhema Espanola and Denise Yzabel Salinas PANAY- They were done with Yolanda’s chapter, and their next goal is to turn the next page and start another story of their life but they can’t seem to see a period to just end it all. Students from the only high school in a village with 7 hamlets dare to put everything behind and start all over again but they practically have to start on scratch. They got no

How the Slowdown in Chinese Economy Growth Impacted New Zealand New Zealand

2569 words - 11 pages rapid growth, and now during the deceleration of China’s economy. China is considered as the new major power of the XXI century. With a 1.3 billion population, and a 9.6 million square meters superficies, the People’s Republic of China has the demographic power and the resources to continue it ascendance on the ladder of world’s most powerful economy. China in 2013 has become the world leader in matter of commercial power. In 2013, merchandise

Using Economic Analysis, Account for the Rapid Growth of an Economy in Recent Years

1267 words - 6 pages Q12a. Using economic analysis, account for the rapid growth of an economy in recent years. Economic growth is the sustained increase in a country’s productive capacity or it’s real national income per capita over a period of time. The rise in the real national income could be caused by a rise in aggregate demand (AD) or aggregate supply (AS). Aggregate demand is the total demand of final goods produced by an economy at various price levels

History of the Engine of Steam

4207 words - 17 pages The history of the steam engine stretches back as far as the 1st century AD; the first recorded rudimentary steam engine being the aeolipile described by Hero of Alexandria.[1] Over a millennium after Hero's (or "Heron's") experiments, a number of steam-powered devices were experimented with or proposed, but it was not until 1712 that a commercially successful steam engine was finally developed, Thomas Newcomen's atmospheric engine. During the

The Internet

4939 words - 20 pages represents less than 1% of the retail portion of the economy. Additionally, more than 100% of the acceleration in productivity since 1995 happened not across the economy as a whole but in computer manufacturing which represents barely 1% of the economy. Elsewhere growth in productivity has stalled or fallen.3 Thus it is possible that while the Internet does have an economic impact it is not yet of such a magnitude to allow for accurate definition

The Internet

3555 words - 15 pages  Before then, computers could communicate over the internet, but there were no web pages.  by Tim Berners-Lee, a software engineer. INTERNET USES Finding Information Online  The most common way to find information online is with a search engine.  All you have to do is type in a few words, and the search engine will give you a list of results that you can click on. Search Engine  software system that is designed to search for information

Related Essays

Globalization: Changing The World's Economy Essay

2539 words - 11 pages Globalization: Changing the World’s Economy Globalization is the process by which the interaction of economic, political, cultural, and environmental systems across geographical borders are accepted as part of a more integrated and interdependent world economy. Some people view it as an exchange of people, goods, ideas, capital, and cultures across national borders linked by the development of modern technologies, such as the Internet

Internet Protocol The Next Generation

666 words - 3 pages Internet Protocol - The Next Generation Internet Protocol, or IP is the addressing system used on the Internet. Due to the rapid expansion of the Internet, the current version, Ipv4, is in need of updating. Internet Protocol version 4 addresses "are 32-bit numbers often expressed as 4 octets in "dotted decimal" notation (for example," [IANA website]. This system supplies 4,294,967,296 (or 232) addresses. While this number

The Engine Essay

2581 words - 11 pages The Engine The engine is a machine that converts chemical energy of fuel into mechanical energy. The heat from combustion of a fuel produces power which propels the car. Sometimes the engine is even called the power plant of a car.  There are two types of engine 1. Internal combustion engine( combustion of fuel takes place internally) 2.External combustion engine( combustion of fuel takes place externally) In the external combustion

Economic Growth The Way U.S. Economy Works And Grows

1591 words - 7 pages Economic Growth is defined as the way that the real income of an economy increases over time. This generally signifies that the economy is wealthier and producing more, individuals are better off, and that living standards are higher. A more technical definition would go into the way that Economic Growth is measured usually in terms of the Gross Domestic Product (GDP) the sum total of the value of a country's output over the course of a year