Abstract
Internetization is a new word and concept that has gained currency with the advent of the new global economy of the 21st century. Prior to the ascendance of Internetization economists had embraced the term globalization to describe the operational parameters of the new economy. The problem with the word globalization is that it is neither a new concept nor is it an appropriate descriptive for the contemporary transformational change precipitated by the spectacular technological inventions on the international economic landscape. The new word, Internetization, describes more succinctly the transformative powers of the world-wide-web and the electronic information high way on the evolving dynamics of interconnectivity for the new global economy of the 21st century. Indeed, Internetization captures the pervasive influence of technological change and electronic innovations on the global economy and all aspects of human endeavour for our civil society in the 21st century.
TopNew Economy
The new global economy of the 21st century has transformed the economic, social, educational and political landscape in a profound and indelible manner. Never before in human history has the pace of structural change been more pervasive, rapid and global in its context.
Key Terms in this Chapter
Globalization: A traditional concept that embraces international outreach and global linkages.
Internetization: A new word and concept that describes the empowerment of electronic connectivity on the new global economy.
New Global Economy: Describes the 21 st century economy that is composed of a trilogy of interactive features that include globalization, trade liberalization and the information technology and communication revolution.
Trade Liberalization: Also known as free trade encourages trade across national borders of goods and services, the legal transfer of intellectual property and the unregulated flow of financial capital.
Financial Internetization: Internetization is responsible for spearheading new economic, financial and commercial transactions such as e-banking, e-commerce, instantaneous credit card purchases, debit cards, Internet bill payments, mobile phone financial transactions, digital cash and the electronic transfer of capital.
Joseph A. Schumpeter: A 20 th century economist who postulated the importance of entrepreneurship and innovation as the foundations for wealth creation.
Economic Globalization: The global integration of economies through trade and investment flows as well as the internationalization of the production of goods and services.
IT Revolution: The information technology revolution has served as a catalyst for electronic connectivity, altered the production function, enhanced productivity growth, facilitated the collection of data, spearheaded the transmission of ideas and extended the reach of economic and social interactions.