Technology has affected the economy through direct job creation, contribution to GDP growth, creation of new services and industries, workforce transformation and business innovation. The use of technology has been linked to marketplace transformation, improved living standards and more robust international trade. Technology has revolutionized virtually every industry in the economy.Know More
Technological advances have significantly lowered the cost of doing business. For example, a manufacturing plant can be operated by just a few technicians controlling robotic systems. Innovative inventory systems are capable of supplying needed parts within a short time for assembly. Computers have drastically reduced the cost of carrying large inventories of intermediate parts and finished products via computerized accounting. Advancements in the computer industry, coupled with advancements in telecommunications, have increased job opportunities and strengthened economic growth. The Internet has overcome the physical barriers to communication over distances, and organizations and individuals can easily place orders through an online platform.
Similarly, manufacturing companies have developed tech-based links to their suppliers and customers. Suppliers can keep track of production-line efficiencies through computer hook-ups and can more efficiently ship parts and materials to the required location, reducing inventory and downtime. International manufacturing companies connect design centers in different countries to create international teams. E-commerce and online-banking capabilities have also helped reduce the cost of doing business.Learn More
Inflation is an increase in prices, which affects the economy by reducing the purchase power of consumers, causing companies to earn less revenue. Inflation also increases the rate of unemployment.Full Answer >
A monopoly contributes to price increases, leads to the creation of inferior products and discourages innovation. Monopolies inhibit free trade and limit the effectiveness of a free-market economy.Full Answer >
Poverty compromises the market's access to skilled labor which is essential for production of needed goods and services. Poor people lack access to good health care, which presents challenges in workforce productivity. The economy also spends more on health care for people who can’t afford it. Further, poverty poses greater demands for the criminal justice system, which reduces productivity of those incarcerated and results in property damage for those affected.Full Answer >
Cell phones have had a profound impact on a number of different industries, helping to develop new communities and business networks in economies on a global scale. Not only are these devices able to connect people to their customers in a new way, they also allow those from different socioeconomic backgrounds to engage in consumer behavior without traditional financial institutions to help them.Full Answer >