Index

1.  Introduction p  1

2.  What is Cyberspace p 1  2

3.  Internet usage p 2  4

4.  Payment systems and security p 4  6

5.  Internet and Business p 6  9

6.  Internet Casinos p 9  11

7.  Conclusion  11

8.  Bibliography p  12

II

GLOBALISATION: CYBERSPACE: PROFITS

With the introduction of the Internet another imaginary world has been created, otherwise known as “cyberspace”, which has produced an “information revolution”. The world of cyberspace was developed through the use of a computer network connected via phonelines throughout the world. The growth of the Internet means that everyone from anywhere around the world can become a part of the global village and communicate no matter what their wealth status is. Data is exchanged freely, as there is no longer the need for circuits; therefore no restrictions apply as to the destination of the data. Through cyberspace, no rules, structure or true identity exist, as a new identity can be created at

¹ For example, if you were male and wanted to portray yourself as female, any one time. Cyberspace would allow that to happen.

Ever improving communication technologies and globalisation have changed the world into a global village. The “information revolution” has made it possible for us to instantly communicate worldwide and therefore has altered our economic behaviour. It is now possible to do almost anything in cyberspace, and certainly business can be done via the web and hence profits can be gained or lost.

Howard Rheingold summarised cyberspace as “the conceptual space where words, human relationships, data, wealth and power are manifested by people using CMC [computer mediated communications] technology”. 2

¹ Martin Dodge & Rob Kitchin, Mapping Cyberspace, Routledge, London, 2001, p.2-5.

² Howard Rheingold quoted by Brian D. Loader,’ The Governance of Cyberspace: Politics, Technology and Global Restructuring’, in Brian Loader (ed), The Governance of Cyberspace: Politics, Technology and Global Restructuring, Routledge, London, 1997, p.1.

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The Internet was created by the Defence Department in the United States of America in 1969, to connect the defence ministers with the appropriate computer research necessary. For up to 25 years, the Internet was only used by a very limited number of people for research and academic purposes. Today, students, business workers, financial institutions and general consumers use the technology for research, marketing,

³ A key tool on the Internet is the use of e-mail, whereby and communication.

instantaneous messaging occurs and communication is made simpler and faster. Basically, the Internet is a global network of computers communicating through telephone lines or modems.

Possessing the technology of fast and efficient communication is not by any means cheap, as costs such as the purchase of a computer, a telephone line, a service provider,

⁴ Not everyone and in the case of a business a web site design needs to be considered. can afford the luxury of extra expenses, therefore the idea that cyberspace endeavours to attract anyone into the global village is false. Only people that can afford to use it can actually have the opportunity to become a part of this global village. Other restrictions include the requirement of electricity, phone line connections and a local Internet service provider. In many villages in Africa, cultural tribes do not use electricity and therefore cannot contribute towards this kind of global village.

According to the “Domain Survey” conducted in the United States of America, in 1997 there were 16.1 million host server providers around the country. The rate of providers has exceedingly slowed down with a 6-month growth of only 25%, compared to January

³ Sarah McCue, Internet: force or farce? Findings from an Internet marketing study, Michigan Small Business Development Center, Detroit, 1997, p.52.

⁴ Sarah McCue, Internet: force or farce? Findings from an Internet marketing study, Michigan Small Business Development Center, Detroit, 1997, p.52.

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1995, where the rate was as high as 51%. Based on the same marketing study, it was found that 40 to 45 million adults in America are Internet users. Of those, 25 million

⁵ By the end of 1997, it was found by “Paul people used the Internet on a weekly basis.

Budde Communications” that the dominant average age group was between 24 and 40 years. 82% of the sampled population was male, with 50% earning an income of over

⁶ $50,000 US and 70% furthering their education after high school.

From the marketing study, there was a significant increase of 13% of people that use the Internet daily between 1995 and 1997. Even though there was a decrease in weekly and monthly users, the number of people attaining information on the Internet increased and a

⁷ greater number of people now use the Internet on a daily basis.

According to “www.consult”, the initial reason for using the Internet is for e-mail or business and research. 23% of users visit their e-mail before carrying out any other activities, while 20% visit web sites for business and research. Online shopping and online financial transactions was the least favoured primary activity, however 21% of

⁸ users undergo online shopping or other financial transactions as a secondary activity. The GVU7 studies (from April/May, 1997), found that Internet users connected to gather information (86% of the time), information searching (63%), browsing information (61%), work purposes (54%), education (52%), communication (47%), entertainment (46%) and

⁵ Sarah McCue, Internet: force or farce? Findings from an Internet marketing study, Michigan Small Business Development Center, Detroit, 1997, p.54.

⁶ Joint Committee of Public Accounts and Audit, Parliament, Australia, Internet commerce: to buy or not to buy? Report 360, Canberra, 1998, p.25.

⁷ Sarah McCue, Internet: force or farce? Findings from an Internet marketing study, Michigan Small Business Development Center, Detroit, 1997, p.54.

⁸ Joint Committee of Public Accounts and Audit, Parliament, Australia, Internet commerce: to buy or not to buy? Report 360, Canberra, 1998, p.26.

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