Introduction
The Internet as one of the most important factors of globalization determines the characteristic features of the latest development. If previously in developed client-oriented economies in the face of fierce competition, the winner was the one, who better and deeply met the needs of consumers, but today these two key parameters were supplemented by the speed in all variety of its determinations. This is the ability to show ads more quickly and more prominent position than its competitors to respond to a client request faster, promptly accept and process an order, deliver faster, etc. If the user goes to the Internet to look for something, he/she spends on search time and sometimes very significant. The objective demand for specific, timely information creates supply – mobile applications, which in a growing number of purchases via the Internet from a mobile device can determine the success of an enterprise (Schneider, 2014).
Literature Review
The Internet impacts on the efficiency and competitiveness of firms and industries through increased information flows that lead to the transfer of knowledge, as well as to improve the organization. In particular, the Internet has evolved into an important lever for building productive capacity and international competitiveness by reducing the transaction costs associated with the production of goods and services and sharing, improvement of the efficiency of administrative functions and capacity of firms in gaining access to large amounts of information and sharing (Mankiw, 2014).
Improving the performance in existing sectors of industrial activity, the Internet also provides the opportunity for the formation of new industries, such as the use of outsourcing arrangements for services online and the production of various kinds of products. These industry activities enable countries, including developing countries, to diversify their economies and enhance their export competitiveness and make it possible to produce high-quality services, stimulating the local economy (Mankiw, 2014).
Analysis
The Internet provides a variety of tools to influence the target audience of the advertiser. Among them, there are advertising on thematic and general information sites, banner networks, e-mail-marketing, promotion on search engines and directories, link exchanges, ratings, partnership and sponsorship programs, etc. Of course, with so many possibilities and limitations of advertising budget, the company should carefully weigh the pros and cons creating a media plan. The objectives of advertising can be an increase of commodity circulation, distribution or gain of product and company images, familiarization with the product, information about the functions and value of the product, increasing confidence in the product, engaging on the web-site visitors to the company and many others (Hoa Pharm, 2014).
In microeconomics, information technologies are considered the same resource as capital and labor, and in the theory of transaction costs, it is argued that information systems can help to minimize external and internal transaction costs. The latest information technologies and the use of Internet network capacity and other major local information networks allow minimizing the costs of production and circulation, significantly reducing the time for modernization and conversion of production, and excretion into the market of new products and services (Mankiw, 2014).
The Internet directly affects the functioning of the institutional framework of the market structure, (the subjects of the market and their technical equipment), its material base (trading companies, warehousing, transportation systems), information base and communication facilities, credit and settlement and the legal framework. Information technology has great effect on the human resource base of the market infrastructure, dictating new requirements for professional skills in handling computers and the work of the network for employment and career advancement (Schneider, 2014).
The possibility of banking services from anywhere in the world is the greatest achievement in the development of the Internet. The selection of Internet-banking by the customer is defined by a set of services that it offers. In connection with the consolidation of the banking industry, a significant increase in online banking market, which will expand its geography, is expected (Schneider, 2014).
An investment business segment has undergone the biggest effect of the Internet. Today, all invest. People watch the bids, and do trade shares via the Internet. Online brokers earn capitals on this convenient method of gambling. The 21st century promises to be a continuation of the era of great change in the Internet. A global network, the Internet, has not yet revealed its full potential (Hoa Pharm, 2014).
Conclusions
The spread of Internet is characterized by a pervasive trend and high speed of implementation in all sectors, namely industry, services, public administration, education, etc. It turns out they have an impact on the everyday lives of people. In connection with the large-scale exposure, a strong economic growth would be expected. However, in fact, the impact of the Internet depends on the social acceptability of the structural and institutional changes that must be made to realize its full potential: business reorganization, a rethinking of relations between the state and the private sector, a new type of work organization, new regulatory mechanisms, etc. However, these and other institutional reforms lag far behind the pace of scientific and technological progress (Hoa Pharm, 2014).
Thus, the increasing spread of the Internet and local networks in all major areas of our lives, economy and business processes, improving their quality and making them dynamic, increase their contribution to the economy, producing all large structural shifts in the economy.
References
Hoa Pharm, Th. L. (2014). ICT Development Strategies. Hamburg: Anchor Academic Publishing.
Mankiw, N. G. (2014). Principles of Microeconomics, 7th ed. Boston: South-Western College Pub.
Schneider, G. (2014). Electronic Commerce, 11th ed. Boston: Course Technology.
