Internet

Definition

The internet is a global system of interconnected computer networks that allows for the exchange of data and communication among users worldwide. It serves as a platform for various applications and services, including email, social media, and online shopping, playing a pivotal role in shaping modern business practices and global trade.

5 Must Know Facts For Your Next Test

1. The dot-com boom in the late 1990s saw the rapid growth of internet-based companies, leading to significant investments and speculation in the technology sector.
2. Many internet startups during the dot-com boom failed when the bubble burst in 2000, leading to a market crash and widespread layoffs.
3. The rise of the internet facilitated offshoring by enabling companies to manage global supply chains more efficiently through real-time communication.
4. As the internet evolved, it became essential for businesses to establish an online presence to reach wider audiences and compete in the global market.
5. The development of cloud computing has further revolutionized how businesses operate, allowing for scalable resources and remote collaboration through the internet.

Review Questions

• How did the internet contribute to the economic changes during the dot-com boom?
  • The internet was a driving force behind the economic changes during the dot-com boom by enabling rapid communication and information sharing. This led to an explosion of internet-based companies that attracted significant investment, as investors believed that these companies would revolutionize traditional business models. However, this speculative frenzy resulted in many companies being overvalued, ultimately leading to a market crash when profits did not materialize as expected.
• In what ways did the internet influence global supply chains and offshoring practices?
  • The internet significantly influenced global supply chains by providing tools for real-time communication and data sharing between companies and their suppliers across different countries. This connectivity allowed businesses to streamline operations, reduce costs, and manage inventory more effectively. Offshoring became more feasible as companies could coordinate with partners globally, monitor production processes remotely, and ensure quality control through digital platforms.
• Evaluate the long-term effects of the internet on business practices and economic globalization since the dot-com boom.
  • The long-term effects of the internet on business practices and economic globalization have been profound. The initial explosion of internet use during the dot-com boom laid the groundwork for e-commerce, transforming how consumers shop and businesses sell their products. Moreover, it has facilitated global trade by allowing companies to reach international markets with minimal barriers. Over time, this shift has led to increased competition, innovation, and efficiency in various industries, while also highlighting issues like the digital divide that can affect equitable access to opportunities in a globally interconnected economy.

Related terms

World Wide Web: A system of interlinked hypertext documents accessed via the internet, enabling users to view and navigate websites.

E-commerce: The buying and selling of goods or services using the internet, which has transformed traditional retail practices.

Digital Divide: The gap between those who have easy access to the internet and digital technologies and those who do not, impacting economic opportunities.