In this day and age, the Internet and social media is the main mode for firms and individuals alike to market and communicate new information. It is easy to get caught up in the effects that activity on the Internet have on the economy.
Social media, like Selina Ho has previously commented, is home to companies conducting a technique called market affiliation. This technique has allowed firms to easily attract consumers; thus a system of allocating goods and resources is set up via the Internet. Facebook, a prime example, has now merged their threats into strengths by expanding into mobile phones, twitter, youtube, and skype alike. What has served to help this bond? The Internet.
The Internet, like a giant motherboard of technology, holds an immense amount of information and by extenstion has a tremendous impact on the economy. Constantly changing, technology gives way for small firms to enter the market, creating higher levels of specialization and trade, leading to, in affect, higher economic efficiency. Likewise, the Internet also provokes social and political impacts. This raises the question: is the Internet economy really as small as we previously thought or will it someday be referred to as “the economy”?
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