Read the summary and the most important questions on International Economics l

• 1 Week 1

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• What is the common definition of international economics?

  Is concerned with the effects upon economic activity from international differences in productive resources and consumer preferences and the international institutions that affect them

• What is the goal of International economics?

  It seeks to explain the patterns and consequences of transactions and interactions between the inhabitants of different countries, including trade, investment and transaction.

• What is International Economics part of and where is it used?

  It is part of the external environment of the company, and it is used in marketing decisions

• Why is International Economics relevant to digital businesses?

  International Economics as a science is needed for compliance procedures

• What are the recent trends in the digital economy

  The evolving digital economy is closely associated with several frontier technologies and fuelled by data:
  

  • Blockchain
    
  • Data Analytics
    
  • Artificial Intelligence
    
  • Internet of Things
    
  • Cloud Computing
    

• What is happening to the Global Internet Protocol traffic

  Even though the world is only in the early days of the data-driven economy, the data flow has grown dramatically.
  
  1992 - 100 GB of traffic per day
  2017 - 46.600 GB of traffic per second
  2022 - 150.700 GB of traffic per second

• What can we say about the geography of the digital economy?

  It is highly concentrated in 2 countries: US and China
  
  

  • 90% of the market capitalisation value of the worlds 70 largest digital platforms
    
  • 75% of all patents related to blockchain technologies
    
  • 50% of global spending on IoT
    
  • 75% of the cloud computing market
    

• Even though the digital economy is evolving rapidly, there still are digital divides. Name 3 of them.

  • Half of the world remains offline
    
  • In lower developed countries only 1 in 5 people are online
    
  • Gender gap is the widest in the poorest economies
    

• What is the definition of digital transformation?

  The integration of digital technology into all areas of a business, fundamentally changing how they operate and deliver value to customers

• What are the influences that the digital transformation can have on International economics?

  • Reduced costs of transactions needed to offer goods and services
    

  
  

  • Enables companies to communicate more efficiently and effectively in their supply chain
    

  
  

  • Makes prices more transparent and opens up new markets for both demanders and suppliers