Internet Affects on the Economy

Internet Affects on the Economy

MBA 501

University of Phoenix Online

Introduction

From an economics point of view, the Internet is a valuable source of information that billions of people throughout the world use in almost every facet of their lives. Students find information regarding course work, investors research information on the stock market or companies in which they wish to invest, consumers research various information regarding goods and services, businesses conduct business transactions, and network sharing allows for consultation and collaboration. The Internet has empowered consumers, forcing business to re-evaluate how they will conduct business in the future.

Information Value

A wide variety of information is available via the Internet, but how do people value the information they retrieve? Students are taught skills in critical thinking to better evaluate the value of information obtained via the Internet. From a consumer’s point of view, suppose they are looking for a new computer, they have the ability to retrieve information from several computer manufacturers in order to seek out the model that best suits their needs without leaving home. We can see the value of the time saved from traveling to different stores, comparing the same information that they reviewed from the Internet. In addition, information obtained using the Internet is generally more up-to-date and accurate than one would find in the stores or talking with sales individuals, making the decision process more informed.

From a medical perspective, how many times have we, or someone we know, returned from a doctor’s office with a diagnosis that we had no idea existed; or in an effort to help and provide comfort, have we conducted research to understand the nature of the illness/disease? Many people visit webMD or similar websites in order to “prevent a trip to the doctor”, thus again saving them time and the expense of the doctor’s visit and subsequent potential laboratory testing. This has, at times, proven to be a mistake since laboratory and medical testing can reveal processes that may be masked by other symptoms. The medical websites usually do not consider this, but give probabilities based on the symptoms alone. However, if someone is “shopping” for a medical facility, they have multiple resources to decide which doctors or facilities are best suited to meet their needs.

From a consumer’s point of view, online businesses typically have a link to other consumer’s views on the goods or services for which they are seeking. For example, several are searching for new computer. This person accesses the consumer reports website for comparison between several makes and models of desktop and laptop computers. They now are presented with choices, prices, specifications, and testing information conducted on each choice. They