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
any one time.1 For example, if you were male and wanted to portray yourself as female,
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.
Table of Contents
1. Introduction
2. What is Cyberspace
3. Internet usage
4. Payment systems and security
5. Internet and Business
6. Internet Casinos
7. Conclusion
8. Bibliography
Objectives and Research Themes
This assignment examines the intersection of cyberspace and global economic activities, focusing on how the Internet has transformed business operations and profitability. The primary objective is to analyze the mechanisms by which companies leverage digital networks to generate revenue, while identifying the challenges regarding regulation, security, and consumer behavior in this new global marketplace.
- The evolution of cyberspace as a platform for global communication and commerce.
- Trends in Internet usage and the demographic characteristics of users.
- Mechanisms and security requirements of electronic payment systems.
- Strategies and profitability challenges for businesses operating in the e-commerce sector.
- The complexities of government regulation and policy concerning online gambling.
Excerpt from the Book
Internet and Business
The Internet is the most important component of cyberspace and is used by firms for a number of purposes, which depend on the size and nature of the company. Such purposes include: to be represented on a platform that is accessible around the globe, to promote corporate ideas, to enhance competitive market strategies on all sectors outside shop-based retail, and to achieve (maximum) profits. In economic terms, profits are defined as total revenue minus total cost of producing the good or service. Economists use economic profits as they measure the incentive the owner has to stay in business versus doing something else; therefore opportunity cost (the value of the next-best foregone alternative that was not chosen because something else was chosen) is included in the calculation. If profits are negative the company makes losses, if profits equal zero the company is breaking even, and if profits are positive the company makes gains. Profit maximisation is defined as an assumption that firms try to achieve the highest possible level of profits given their production function.
Summary of Chapters
1. Introduction: This chapter introduces the concept of cyberspace as a result of the information revolution, highlighting its role in creating a global village that alters economic behavior.
2. What is Cyberspace: This section defines cyberspace as a conceptual space facilitated by computer networks, noting the absence of traditional physical and structural constraints.
3. Internet usage: This chapter outlines the historical origin of the Internet and analyzes contemporary usage patterns, emphasizing the limitations regarding access and infrastructure.
4. Payment systems and security: This section details the reliance of e-commerce on electronic payment systems, discussing the distinction between accounted and unaccounted transactions and security concerns.
5. Internet and Business: This chapter explores how firms utilize the Internet to promote their corporate identity, enhance strategies, and pursue profit maximization in competitive digital markets.
6. Internet Casinos: This chapter serves as a case study on the difficulties of governing Internet gambling, focusing on the trade-offs between prohibition and regulation for the Australian government.
7. Conclusion: This final chapter synthesizes the main arguments, predicting the continued growth of e-commerce and stressing the need for careful long-term planning for business sustainability.
8. Bibliography: This section lists all the academic and primary sources used throughout the assignment.
Keywords
Cyberspace, Globalisation, Information revolution, Internet usage, E-commerce, Electronic payment systems, Profit maximisation, Economic behavior, Online banking, Internet Casinos, Government regulation, Digital economy, Consumer confidence, Business strategy, Global village.
Frequently Asked Questions
What is the fundamental focus of this paper?
The paper explores the relationship between the development of cyberspace and the generation of business profits, investigating how globalization and Internet technologies have reshaped economic landscapes.
What are the central thematic fields addressed in the work?
The central themes include the evolution of the Internet, the mechanics of online business, the importance of secure payment systems, and the regulatory challenges associated with emerging industries like online gambling.
What is the primary objective of the research?
The primary goal is to analyze how companies function within cyberspace to achieve profitability and to evaluate the socio-economic implications of this digital transition.
Which scientific methodology is utilized?
The work employs a literature-based analytical approach, reviewing existing studies, market surveys, and government reports to synthesize the current state of e-commerce and digital regulation.
What topics are covered in the main section?
The main sections cover the technical and conceptual development of cyberspace, user demographics, the economics of e-retail, security protocols for financial transactions, and a case study on the policy debates surrounding Internet casinos.
Which keywords characterize the work?
Key terms such as e-commerce, profit maximization, globalization, cyberspace, and regulatory policy are central to understanding the scope and intent of this research.
How does the author view the balance between government regulation and online casino profitability?
The author argues that while total prohibition might be politically motivated to appease anti-gambling groups, a permissive regulatory approach would be more economically beneficial for the government through taxation and oversight.
Why does the author consider "careful planning" vital for e-business?
The author notes that because the dot-com crash demonstrated the risks of speculative investment, sustainable e-commerce requires long-term strategic planning rather than expectations of instant profit.
- Quote paper
- Anke Bartl (Author), Lisa Cousins (Author), 2003, Cyberspace and Profits, Munich, GRIN Verlag, https://www.grin.com/document/18824
