The Impact Of Computers On The Economy

The Impact Of Computers On The Economy

The advent of computers has markedly improved our economy and standards of daily living as business, commerce and global trade has flourished at unprecedented rate over the past decades. Furthermore, it has significantly increased the utilization of resources which in turn resulted to a big deluge of output in many business establishments. Despite the brief periods of recession, the economy’s sudden downward dive did not leave a devastating impact as predicted as it readily bounced back after a period of adjustments.

The computers served as a tool for global communication where the export and import of manufactured goods between and among countries’ businesses are being arranged as communication through electronic mails or emails travel as fast as the speed of light. With the entry of imported products in the local market, consumers nowadays need not go abroad only to sample some of the world’s finest food, clothing and apparel and grooming products.

As trade among nations allowed the phasing-out of some barriers, imported goods freely enter the market of a given country with a markedly reduced tax imposed on such goods thereby lowering the selling price of the manufacture. As the economic rule proves true that abundance in the supply lowers the price of a commodity. Because of the stiff competition, international manufacturers and suppliers are given no other alternatives except to mark down the price of their commodities to be able to stay on the business ladder.

Because of computers, Business Process Outsourcing or BPO has provided countries such as India, the Philippines and South Africa a kick to their economy by providing thousands of jobs to its workforce. Countries providing for outsourcing on the other hand, receive the biggest boost to their economy as they are relieved of paying for the manpower costs in their own country as cheaper labor cost in other countries allow them to cut-back expenses.

Records show that India alone has revenues of US$10.9 billion from offshore BPO and US$30 billion from IT and total BPO in 2008 giving the country 5-6% share of the total BPO Industry.

The computers and the internet has provided for an avenue where scientists and researchers of pharmaceutical companies for example, to conduct modifications on certain medications, develop drugs of superior quality than other existing drugs and discover new ones that promise immense financial rewards for the sole production and distribution for a period of time.

Indeed, the invention of computers and the internet has become the most effective catalyst for competition to grow not in increments but in big deluge giving businesses the scare of their lives. As competition gets stronger, manufacturing companies employ various marketing strategies to increase sales which ultimately end up to benefit the consumers in general.


The Economy

Analyzing the Current State of the Global Economy


The global economy plays a crucial role in shaping the socio-political landscape of countries around the world. It is a complex and interconnected system that influences the lives of individuals, governments, and businesses alike. In this article, we will delve into the current state of the global economy, examining key indicators, trends, and challenges faced by nations in recent times.

Global Economic Growth:

In recent years, the global economy has experienced a mixed bag of growth rates across different regions. While some countries have shown remarkable resilience and expansion, others have faced significant challenges. As of the latest data, the global economy has been on a path to recovery following the severe downturn caused by the COVID-19 pandemic.

Developed Economies:

Many developed economies, such as the United States, European Union, and Japan, have witnessed a gradual recovery. Governments have implemented expansionary fiscal policies, coupled with accommodative monetary measures, to stimulate economic activity. These efforts have helped in reducing unemployment rates, boosting consumer spending, and driving business investment.

Emerging Market Economies:

Emerging market economies have experienced a diverse range of outcomes. Some countries, like China and India, have exhibited robust growth, driven by domestic consumption, infrastructure development, and technological advancements. However, other emerging economies have faced headwinds due to external factors such as trade disputes, political instability, and currency fluctuations.

Inflationary Pressures:

One of the key concerns in the global economy is the rising inflationary pressures. Higher commodity prices, supply chain disruptions, and increased government spending have contributed to inflationary trends in various countries. Central banks are grappling with the challenge of striking a balance between supporting economic growth and keeping inflation in check. Uncontrolled inflation could erode purchasing power, reduce consumer confidence, and negatively impact long-term economic stability.

Labor Market Dynamics:

The COVID-19 pandemic has significantly impacted the global labor market. While some sectors, such as technology and e-commerce, have thrived, others, such as hospitality, travel, and retail, have suffered major setbacks. The transition to remote work and the accelerated adoption of automation and artificial intelligence have also reshaped the employment landscape. Governments and businesses are focusing on reskilling and upskilling initiatives to bridge the skills gap and ensure a productive workforce for the future.

Sustainable Development and ESG:

Environmental, Social, and Governance (ESG) factors have gained prominence in the global economy. Climate change concerns, social inequalities, and corporate governance practices are being closely scrutinized. Governments, businesses, and investors are increasingly adopting sustainable practices, incorporating ESG considerations into decision-making processes, and pursuing renewable energy initiatives. The shift towards sustainable development is expected to shape future economic growth and investment patterns.

Geopolitical Challenges:

Geopolitical tensions and trade disputes have created uncertainties in the global economy. The rise of protectionist policies, trade barriers, and geopolitical rivalries have disrupted global supply chains and hindered international trade. These challenges have prompted countries to reevaluate their economic dependencies, diversify trade partners, and explore regional cooperation initiatives.


The global economy is navigating through a complex and evolving landscape. While some countries are experiencing strong economic growth, others are grappling with persistent challenges. Inflationary pressures, labor market dynamics, sustainable development goals, and geopolitical uncertainties are shaping the economic outlook for nations worldwide. Governments, policymakers, businesses, and individuals must adapt to these changing circumstances, embrace technological advancements, and prioritize sustainable practices to foster inclusive and resilient economic growth in the years to come.

Author: Mohammed A Bazzoun

If you have any more specific questions, feel free to ask in comments.


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