Week 4
In class reader response (Members: Alicia and Mei Yee)

Reading response based on the article “The great internet swindle: ever get the feeling you've been cheated?”:

The internet encourages the formation of monopolies and this may lead to inefficiency and lower the quality of life in the long run. With only a few companies dominating the economy, it discourages innovation, competitiveness, job opportunities, spread of wealth and also equal chances. These are crucial for the continuity of human race because if one sees that there is inequality and lesser hope for his/her future, the motivation to innovate and compete will decrease. Eventually, one may stop trying to create and hence unable to adapt to the ever-changing environment. Without competition amongst each other, the chance of breakthrough is slim and thus resulting in lesser choices for consumers; in extreme cases, they can only accept whatever the monopolist offers. As the sole player in the market, the monopolist captures all the profit by controlling the market, leaving no chances for other companies to survive. This enlarges the wealth distribution gap and could possibly result in social inequality.

Online businesses can also cause a great impact on countries' economies. They can lower the local purchasing power because locals can easily purchase foreign products through the "borderless economy" created by the internet. Consumers now have access to more varieties and choices, which tend to be cheaper, across the net. This causes the outflow of currencies and therefore lowers the gross domestic product (GDP) of the country.