Economy is the wealth of a region a country or a state, especially from production of goods and services (Markusen, Wassall, DeNatale, & Cohen, 2008, p. 28). Every region or country has a standardized measure of the expected performance in economy by considering the past sequences in the light of other related parameters. In the recent past, there has been a random change in global economies following the introduction of internet, which has enabled entrepreneurs to manage their business using accurate software and hence increasing efficiency. However, the introduction of internet has also led to other detrimental consequences to the economies, which include increased unemployment and internet theft. The debate on the efficiency of the rapidly adopted internet operations receives opinions from different perspectives. For instance, some scholars argue that, increased internet usage is increasing the bridge between the poor and the rich, in a push of a button an entrepreneur can make a fortune, consequently making it hard for the poor to get employment leading to a low living standard (Markusen, Wassall, DeNatale, & Cohen, 2008, p. 28)
In this paper, I will examine different sources of relevance in the light of the impacts of internet on the global economy. In addition, in this paper, through the review of other scholarly articles I will seek to build a scholarly opinion on whether internet affects the economies positively or adversely in the end.
In the recent past, most countries have experienced a rapid economic and demographic growth following the emergence of internet (Sweeney & Morrison, 2009, p.1). However, the populations of these areas were not prepared for the changes and were forced to adopt with compromise. Sweeney and Morrison in their article the impact of the internet on consumer lifestyles: qualitative insights from households in country Australia took a research aimed at identifying the number of household who adopted the internet out of will and not compromise. The research showed that most of the population adopted the various technologies out of inconveniences; they had therefore not planned for the adoption. This article shows the detrimental consequences of internet on the economy by forcing the consumers to act out of irrationality and spend their revenue on an unplanned innovation. However, the main critic of internet in this article remains the obsolescence. The statistics applied in the article shows that majority of the adopting population had to discard their earlier versions of operations, which contributed greatly to economic loss and inconveniences. It is valid to generalize the case conceptualization of Australia in the context of global economy, as similar trends are evident in most parts of the world (Sweeney & Morrison, 2009, p.1).
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Similarly, Charles Kenny, in his article The Internet and Economic Growth in Less-developed Countries: A Case of Managing Expectations explores the detrimental consequences of internet in the developing countries. His case study was based on the countries that experience a high number of mass unemployment. According to his research, Kenny explored the impacts that the internet adoption was causing to the population with different income levels. In the developing countries, majority of the population are slightly above the poverty line with minimum or no savings (Kenny, 2003). Therefore, it is difficult for them to adopt the modest internet as it is expensive and comes last in their priority list. He argued that internet adoption was causing economic drift between the elites and the no elites. He feared that, if the elites are allowed to adopt the modest innovations, then the majority of the population stands no chance to bridge the gap in the future. He described this gap as digital Vs analog; he also asserted that, such adoption would make a country or state to have living poor conditions to the majority and hence inequitable distribution of resources (Kenny, 2003, p. 11).
In a seemingly direct counter of Kenny’s work on the impacts of internet on economies, Cardoso, Cheong &Cole shared a different opinion of the same. The three scholars wrote the World Wide Internet: Changing Societies, Economies, and Cultures. In this article, the author examines the positive impacts of internet, which include increased productivity and efficiency in operations. Their main idea revolves around their thesis that internet adoption is not a cause of unemployment but saves person-hour, which should be put to an alternative use (Sweeney & Morrison, 2009, p. 1-3).
In addition, Peterson, Balasubramanian, & Bronnenberg, analyzed the market integration caused by the online marketing and effective shopping. It is possible for a consumer to order a good or a service at the comfort of his house (Balasubramanian, 2009). This possibility allows the economy to save a lot of work force during the execution of business processes. If this labor is put into a better use, it will eventually achieve rapid and sustainable economic growth. The argument build in this article is much inclined on the need to adopt and adapt to the internet rather than to hold back to the outdated means of operations in an attempt not to disrupt the economy (Peterson, Balasubramanian, & Bronnenberg, 2009, p. 4).
Similarly, according to (Sadeh, Hildum, Kjenstad, & Tseng (2001), internet has contributed to major positive impacts to the economy, which include advanced production and centralization of businesses allowing easy management. Furthermore, internet has led to increased investment and increased employment. By use of internet services to follow business operations and global market, investors significantly reduce the investment risk involved and hence better investment opportunities. In addition, low risks in business ensure prosperity and business growth, which translates to a better living standard, increased employment and increased GDP in the end (Sadeh, Hildum, Kjenstad, & Tseng, 2001, p. 12).
After investigating the above scholarly works, it is evident that internet has a number of negative impacts to the global economies. However, it is also clear that there are numerous advantages associated with the internet adoption. It is advisable for individuals and organizations to adapt to the technological changes to increase their competitive advantages. Furthermore, with the increased innovations, internet adoption is inevitable in the end.
- Cardoso, G., Cheong, A., Cole, J., & U, C. (2009). World Wide Internet: Changing Societies, Economies and Cultures.
- Kenny, C. (2009). The Internet and Economic Growth in Less-developed Countries: A Case of Managing Expectations? 1. Oxford Development Studies. doi:10.1080/1360081032000047212
- Markusen, A., Wassall, G. H., DeNatale, D., & Cohen, R. (2008). Defining the Creative Economy: Industry and Occupational Approaches. Economic Development Quarterly. doi:10.1177/0891242407311862
- Peterson, R. A., Balasubramanian, S., & Bronnenberg, B. J. (2009). Exploring the implications of the internet for consumer marketing. Journal of The Academy of Marketing Science. doi:10.1177/0092070397254005.
- Sadeh, N. M., Hildum, D. W., Kjenstad, D., & Tseng, A. (2001). MASCOT: An agent-based architecture for dynamic supply chain creation and coordination in the internet economy.
- Sweeney, A., & Morrison, M. (2009). The Impact of the Internet On Consumer Lifestyles: Qualitative Insights From Households In Country Australia.
