Its832 Information Systems In A Global Economy Fall 2019

Its832 Information Systemsin A Global Economyfall 2019 Fall Sections

ITS832 – Information Systems in a Global Economy Fall 2019 Fall Sections 52 and 53 Lecture #11 – November 4th, 2019 Dr. Donald S. Walker Digital Trade (A slight deviation from the syllabus) OVERVIEW What is Digital Trade? Current State of Digital Trade Incentives for and Barriers to Digital Trade Discussion Question Conclusion WHAT IS DIGITAL TRADE? According to the Congressional Research Service (link in speaker notes): – Digital trade includes end-products, such as downloaded movies, and products and services that rely on or facilitate digital trade, such as productivity-enhancing tools like cloud data storage and email. Not just content and software, also infrastructure products Increasing relative to merchandise and financial services 1 WHAT IS DIGITAL TRADE? (cont.) Use this diagram for your discussion question response 1 CURRENT STATE OF DIGITAL TRADE Global digital content (video games, video, music, and e-publishing) revenue grew to nearly $90 billion in 2016, with video games making up nearly 55 percent of the total Video Games lead the content arena US, Taiwan and South Korea are lead hardware producers For example, YouTube and Neflix comprise over 25% Internet traffic Google sells more ads than any company 1 INCENTIVES AND BARRIERS Incentives Near-term: Profit Long-term: Growth Barriers Internet Access Government Policy Culture 1 DISCUSSION QUESTION Review the graphic on slide 4 (What is Digital Trade) Choose one of the digital trade factors in bold text from the graphic (do not choose Cloud Services, we’ve seen too much spinning on that already) Post an initial response that provides the following to your colleagues: Brief Description Trends (growing, declining, stable, being replaced by some other technology, etc) 2 articles (preferably) or websites that your colleagues can use for further research CONCLUSION Last week I asked about still seeing article spinning, and I asked, what is up with that? If I’ve accused you of it, or said your writing sounds like it, please email me to explain and help me learn Digital Trade is growing faster than other more traditional market segments, making it a worthwhile research area Questions/concerns email [email protected]

Paper For Above instruction

Digital trade has become a pivotal component of the global economy, fundamentally transforming how goods and services are exchanged across borders. Defined broadly by the Congressional Research Service, digital trade encompasses both end-products such as downloaded movies, music, and video games, as well as products and services that facilitate digital transactions, including cloud storage, email, and productivity tools. As digital trade expands, its significance surpasses traditional merchandise and financial sectors, reflecting an evolution driven by technological advancements and changing consumer behaviors.

Among the various factors influencing digital trade, internet access stands out as a critical enabler of digital transactions. The trend here is unmistakably upward, driven by continuous investments in broadband infrastructure, mobile connectivity, and affordable internet services worldwide. According to the International Telecommunication Union (ITU), global internet penetration reached approximately 66.2% in 2019, with developing countries experiencing rapid growth. This expanding access not only broadens the consumer base but also facilitates the rise of diverse digital products and services, from streaming entertainment to e-commerce platforms.

The growth of digital content is a salient aspect of digital trade, with global revenues reaching nearly $90 billion in 2016. Notably, video games dominate this sector, constituting nearly 55% of total digital content revenue. Countries such as the United States, Taiwan, and South Korea lead hardware and software production, pushing the innovation and supply chain of digital entertainment. Platforms like YouTube and Netflix contribute significantly to internet traffic, accounting for over 25%, indicating the central role of streaming services in digital trade dynamics (Statista, 2018).

The incentives for digital trade are primarily driven by profit in the short term and growth in the long term. Companies recognize that digital markets offer lucrative opportunities for revenue generation through advertising, subscriptions, and sales of digital products. For instance, Google dominates online advertising worldwide, which underscores the profitability of digital platforms (Pew Research Center, 2018). Conversely, barriers such as limited internet access, restrictive government policies, and cultural differences hinder the full potential of digital trade, especially in regions with infrastructural deficits or strict regulations.

Government policies play a crucial role in shaping digital trade. Progressive policies that promote open internet access and reduce trade barriers facilitate cross-border digital transactions. Conversely, censorship, data localization laws, and tariffs can impede digital trade flows. Cultural factors also influence adoption, with some societies exhibiting resistance to digital content due to language barriers or preferences for local products.

Research on digital trade highlights its rapid growth compared to traditional markets, emphasizing the importance of technological infrastructure, regulatory frameworks, and consumer acceptance. For example, the rise of e-sports, mobile gaming, and cloud-based services illustrates the sector's expanding reach and revenue potential. As digital trade continues to evolve, the key to harnessing its benefits lies in addressing barriers and fostering innovation through supportive policies and investments.

References

• International Telecommunication Union. (2019). Measuring digital development: Facts and figures 2019. ITU Publications.
• Pew Research Center. (2018). Internet usage and digital advertising in the United States. Pew Research Center.
• Statista. (2018). Digital content revenue worldwide. Statista Reports.
• Congressional Research Service. (2018). Digital Trade and U.S. policy. CRS Report R45197.
• World Bank. (2020). Digital dividends: World Development Report 2016. World Bank Publications.
• OECD. (2019). Digital Economy Outlook 2019. OECD Publishing.
• UNCTAD. (2020). Digital Economy Report 2020. United Nations Conference on Trade and Development.
• ITU. (2019). Global Connectivity Data. International Telecommunication Union.
• McKinsey & Company. (2019). The future of digital trade: Opportunities and challenges. McKinsey Digital.
• EU Commission. (2020). Digital Single Market Strategy. European Commission Reports.