business and economy in the internet age

1. Outsourcing not just as an overseas issue, but as a constant phenomenon in daily business activities.

The development of the internet has created a more interdependent corporate environment in the U.S. Work that used to be done on the corporation's premises may now be "outsourced" to some other company that may do the same job at a cheaper price. The internet enables the exchanges of brokers, venture capitalists, and general contractors, all at the same time and there may not be a single point of oversight. (O'Meara, 296) Malone and Laubacher hence argue that entire industries can move quite rapidly from centraized structures to network structures. Of course, such outsourcing is not just nation-wide, but international-wide. Even automobile industries may become smaller and more nimble, breaking down into smaller, interrelated companies that are easier to fund and quicker to innovate, both for more profit and greater competitiveness in the international market. The model for network structures is the development of the UNIX system.

The future of this type of economy, which Malone and Laubacher argues could be fantastic if properly implemented, leading to greater efficiency and even greater leisure time, as the gigantic operational costs of the big corporation could be reduced, and much planning is done not through bureaucratic channels costing money and paper but through internet networking. The downside of this picture is the possible widening of the gap between those who know how to work on the internet and who do not.

2. The internet and e-currency.

Another implication of the internet age would be the gradual disappearance of the use of money, which could have implications not only for financial transactions but also for national borders.

For many of us, payment not with money but DVUs (digital value units) still remains fantasy rather than reality. But like so many other things, this one may become reality really soon. Like rebates or credits issued to you by a company, e-currencies are issued by individual companies, except that they are not denominated by the dollar or any existent form of currency. The e-currency issued by one company may or may not be accepted by another company as form of payment. It will resemble the 19th and early 20th centuries' paper monies issued by various banks in many countries, where a uniform form of paper money did not happen until later. Although the U.S. adopted the dollar from the beginning of independence, before independence it had used different kinds of monies, including foreign coins, tobacco or certificates of deposited tobacco, and paper money (Continentals).

Although in the early stages DVUs may be purchased by the dollar, mark, or other national currencies, and converted into these currencies when in use, as time goes on, they may gain a life of their own much like the U.S. dollar. When that happens, it will become increasingly difficult to answer the following questions:

One of the answers to these questions is the need for more international institutions to supervise business and economic activities in an internet age.

3. Globalization and indigenization:

One of the misconceptions of the age of the global market is that certain universal forces would uproot and replace indigenous activities, such as the replacement of local money with e-cash. The reality is that globalization would never completely take root without taking into consideration of and adapt to the local situations. Globalization and indigenization of global practices happen at the same time. Hence MacDonald's offers wine in France, beer in Germany, and fried rice in Taiwan.