The Internet provides a platform for global interaction in all social spheres. Since the Internet does not have physical/material location, it exists in a cyberspace. Possession of certain web characteristics makes allowances to online business and labor market. Consequently, a classical form of capitalism cannot be applied in the network interactions. This argumentative essay evaluates peculiarities of interaction between Internet users in terms of economic reflection. Pros and cons of online trade and labor are considered as well.
capitalism, the Internet, economy, interaction
The principle of liberty in the objective laws means freedom from compulsion by others. This statement is also applied in the economic definition of free-market. A trade is an optional exchange of goods and services within parties which implies mutual benefit. Capitalistic relationships stand for competition that does not coerce the rights of others. According to Rothbard, a free market implies that choices are made freely and voluntarily; the competition founded on such choices might lead to monopoly. Modern local and international economy actively uses the Internet as a tool to provide all kinds of interaction on the grounds of liberty. The network of millions of computers connects more than 190 countries and facilitates cultural, social and trade relations between users. A basic concept of the Internet is that it has no centralized control and none organization owns it. Hence, it can be used by representatives from any social spheres and business. . However, absence of control results in insecurity and privacy infringement, which, in its turn, affects capitalistic Internet economy.
The Web Business Today
Nowadays, the Internet network connects almost forty percent of the entire population. Growth of the network is illustrated by the figures which state that only website in 1991 turned into one billion iby the middle of 2014. Today, people use the web for interpersonal communication, transferring concepts or commerce. Nonetheless, there can be concealed spheres due to boundlessness of the Internet.
Electronic commerce exists in web and email marketing, social media marketing and implies trade or exchange of goods or services. The principles of capitalism demand to popularize a product to as many customers as possible by means of the global network. A company can propose it's product to more people that in the material world due to extension the web by using advertisement, social cites, e-mail and various search engines.
The most successful market players are those who sell more products and can legally oppress others. They can benefit not only in social or trade areas due to individual advice, link sharing or ability to reduce charts for office rent. Technically, the Internet is provided by fibre-optic lines, routers and computers. Few companies, such as Cisco, Wellfleet and DEC have the major share of this market. They can set the controls of the traffic within a small amount of owners and establish a monopoly. This statement is also true to search engines. For instance, Google holds 67.6 percent of the search engine market and 18.7 percent are allocated to Bing. In fact, this phenomenon can reduce objectivity in searching results. Consequently, the modern economy effects social and technological spheres through competition and monopoly. Competitive environment allows improving quality and adjusting price of a product, however, aggressive proposal can diminish consumption rate. However, the monopoly controlled by the free market laws, is favoured in contrast with the monopoly regulated by irrational government laws.
Effects of the Internet on Economy
The World Wide Web as cyberspace has certain characteristics that influence communication held by means of the network. For instance, modern laws include personal privacy in Electronic Communications Privacy Act, copyright is regulated by the Digital Millennium Copyright, etc. However, these laws cannot be fully applied in the network due to its extensiveness. Nonetheless, a self-regulation “as a collective economic decision – an intersection of maximization of profit and expressions of public interest” is done by means of negotiations, arrangements and collaboration with the government. If a commercial self-interest includes broader public interest, such trade will be beneficial. However, profit-orientated organizations may risk having less advantage within the web in a case of such voluntary regulation. Since capitalistic economy is based upon security, privacy and recourse control, these issues remain unsettled. For example, free access to information on YouTube or download servers often results into infringement of copyright. This argument undermines the principles of capitalism related to private property. According to Brand Shapcott, the Internet is not free; hence, it's economy cannot apply capitalistic approach. Trade marks, patents, domain names copyright are private property and cannot be used by others for free; however, a total security of the web is impossible because of it's boundless. Business in the real world is regulated by the government laws that cannot be fully applied in the cyberspace. Consequently, capitalism within the web can be possible only in a field of the legislation function.
Moreover, the alternative or shadow Internet emerged in 2010 when Esnet and Internet2 created a non-commercialized international, free from filters and blocking network. The network functions based on to the total information liberty and high personal moral values, and cannot be regulated by any person or organization.
Culture and Practice of Internet Business
The Internet offers numerous possibilities for work and trade. An individual can use the web and promote their product or skills with a help of specifically designed web pages. Other means of connecting with the current or potential customers include: optimization of search engines, social media advertisement, content and email marketing etc. The online labour market has a huge variety of propositions which vary from health consultants and freelance writers to mobile applications development or technical support.
Instant connection with local and foreign customers, access to information, easy international money transfer, personal timetable, duty regulations and responsibility for reputation are the main advantages of the web labour and marketing. On the other hand, negative factors include: financial risks, false information, product transport insecurity and customer irresponsibility.
In summarise, extreme growth of the network and the number of its users makes the Internet the most advantageous means of interaction between people today. Interpersonal communication, political and commerce areas possess specific features of the web. Nevertheless, the Internet cannot be entirely regulated and controlled due to large amount of users and impossibility to fully apply the regulations. The network provides a possibility of free interaction between various social spheres at any time and through many services. Internet self-regulation applies a human factor to all spheres of internal relationships. However, this measure of privacy and security also cannot be deemed sufficient because of boundlessness of the network.
Earn 10% from every order!
Earn money today! Refer our service to your friends