Suggest reasons for trends

April 26, 2018 Business

From looking at figure 5 a varity of trends can be shown. When focusing on internet users a very slow rate of growth can be shown, this may be due to the small amount of countries that are able to get access to the World Wide Web due to connections. Over a 10 year period from 1998 to 2008 there can be seen a major rise in the use of the internet. As the internet is a relatively new device it is clear that those less developed countries would take time to get hold of it.

1990 was quite early for a developing country to use the internet but is is clear as the world has become more globalized and developed the internet usage has shot up. This is due to a technological advance around the world and slowly the developing countries got hold of it. For the internet to be set up it has a lot of costs to fit the cables and software. Developing countries clearly take time to collect these costs so internet can be used effectively.

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Also some developing countries are more developed than others and there links with the developed world are a lot better, for example China where the internet would be widely used due to the amount of contact they have with developed countries. When TNC’s are set up in the developing countries they bring with the technology which can cause a multiplier effect in that country. It is clear that there are only a limited number of countries that have the luxury of FDI which can get them started and technology like the internet put in place.

The physical barriers as well are a concern and it is possible that not until recently these have been broken making a big rise is internet usage. Telephone and landlines can be seen to be very high early on in 1990, which was due to the fact it was a viable option at the time, but this has been reduced due to costs such as land line cables and the high charges in connection. Recently there has been a decline and that is due to the alternative option which is mobile phones.

These developing countries are showing development by adopting the mobile phone instead of the landline. The trend shown has to be linked to economic development which is why it is a slow rise. Developing countries find it hard to put the technology into place, but with the help of the developing countries it is a lot easier. Mobile phones can be seen to only start taking shape in 1996 but when they are introduced they soar above any other form of technology. They end up in 20098 to having 60 handsets per 1000 people which is a huge amount.

This is due to the cheap costs that are present and they are affordable to the people which there low wages. Many companies such as Nokia have seen a mobile phone market available in developing countries and they cause a lot more people to get hold of them. The developing countries see how much of a difference they make to life and spread the word and soon a lot of people are in possession. Unlike landlines there is only one satellite dish that is needed and these can be place almost any where meaning they don’t take up a lot of time and money.

The running costs are low as usually the spare parts may be made in the developing countries and easy ways of keeping them charged are available such as using the sun. The fact that many people have them makes business easier which attracts more people to have them making them very popular compared to the land line. It is the fact that they are very simple and cheap that there are so many being used in the developing world compared to the internet and land lines.

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