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Globalization has received a huge boost by the advances in Telecommunications

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Globalization has received a huge boost by the advances in Telecommunications

Telecommunication is the main factor that has made the world a global village.

Advanced technologies and new innovations have contributed a great deal to economic

growth. Economic activities such as stock market trading and credit markets among others are

largely dependent on the utilization of advanced communication technology (Sajjad, 2017).

Therefore, daily economic activities need information to be available. This has made

telecommunications one of the most important factors in enhancing economic development.

Telecommunications allows for the sharing of information between businesses and also

between businesses and customers (Sajjad, 2017). Telecommunications contributes to

economic growth not only by connecting the businesses in the country with the international

market but also with the domestic market. Therefore, it is a tool that ensures that there is a

perpetual increase in GDP growth.

There is an aggressive growth in the telecommunication industry, which allows it to

enhance levels of productivity in economic activities, which will have a positive impact in

such macro-economic factors as foreign direct investment and the growth rate of GDP. The

presence of telecommunications industry in itself creates a lot of jobs that reduce the rates of

unemployment in economies and contribute to an increase in GDP per capita. According to

Sajjad (2017), the development and growth of the telecommunications industry offers a huge

opportunity for developing countries to leverage in growing their economy.

Telecommunication will provide these countries with the tools they need to increase the

sharing of information and increase the sizes of companies in those countries and their

capacity to employ more people. Internet is part of the telecommunications industry.

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It is almost impossible to think how companies all over the world would carry out their

business activities without the internet. Take the example of a company such as Google, LLC.

This company relies on the internet to carry out almost all of its business. The company has

contributed to economic growth all over the world by providing employment to people in

every single country of the world. Besides, the company provides businesses with the

opportunity to make their businesses online through the Google search engine and tools such

as search engine optimization (Bertschek et al., 2015). Without such tools, the economic

growth that has been achieved today would be impossible to achieve. The impact that

telecommunications has had on economic growth is tremendous and evident everywhere.

Even now as I write this assignment, I will depend on the internet to upload it. This shows

that telecommunications has an impact even on my learning.

The reach of telecommunications is in all the sectors of the economy. Governments use

it in planning their economic development initiatives. In hospitals, health information systems

are used almost universally to keep the health records of patients and ease the process of

diagnosis and treatment. In the military, it is used to deliver important information. In schools,

it facilitates communication between students and teachers, especially now that all class

meetings have to be done online due to the Covid-19 pandemic. Telecommunications has

provided us with opportunities that would be virtually non-existent without it. For example,

we would just have to wait until we can met again on campus to resume classes if there were

no internet. In the social world, too, telecommunications allows people to connect with their

friends in different continents. Telecommunication has touched all the areas of our lives,

allowing us to use it to achieve economic growth.

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References

Bertschek, I., Briglauer, W., Hüschelrath, K., Kauf, B., & Niebel, T. (2015). The economic

impacts of broadband internet: A survey. Review of Network Economics, 14(4), 201-

227.

Sajjad, H. S. (2017). Telecommunication and its impact over the economic development of

SAARC countries International Research Journal of Interdisciplinary &

Multidisciplinary Studies (IRJIMS) A Peer-Reviewed Monthly Research Journal, 3

(I): 114-124 ISSN: 2394-7969.