Effects of the Internet on the Global Economy

Effects of the Internet on the Global Economy

Introduction

It is all about being connected. Throughout the ages being connected has allowed for the economy to grow. The modes of transportation connected the ancient worlds and individual economies grew or dwindled depending on the effectiveness of transportation. Most economic strongholds were on the waterfronts. Shipping was the main mode of transportation. This shifted from the advent of the steam engine. The era of the rail transportation allowed for economic centers to shift and permitted countries to be connected nationally and internationally. Again the economy has entered a new era of being connected by the Internet. “According to the record books, not since the Industrial Revolution has the U.S. economy enjoyed such an extended and prosperous period of uninterrupted growth -- mostly due to rapid advances in technology that have completely altered the business landscape.” (Goldman, 2000)

The Internet has created some unique challenges to both local and global economies. Although the Internet has experienced some setbacks, the business opportunities contained therein as well as the volume of daily transactions are too significant for economists and businesses to ignore. In today’s global economy, the Internet is an effective way to market goods and services for many companies. As the commercial landscape continues to change, the Internet provides a direct connection between international and U.S. businesses. This connection shortens the communication gap between companies and provides a forum for daily negotiations.