INTERNET A DRIVING FORCE; ECONOMIC CLOUT RIVALS AUTOMAKERS' IN INFORMATION SUPER-BUYWAY'S FIRST YEARS.Byline: Andrew J. Glass Cox News Service The booming domestic Internet economy The Internet Economy refers to conducting business through markets whose infrastructure is based on the Internet and World-Wide Web. An Internet economy differs from a traditional economy in a number of ways, including: communication, market segmentation, distribution costs, and price. now rivals or exceeds the revenues of such veteran sectors as autos, energy utilities and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , a major academic study concluded Thursday. The study estimates that the Internet economy grew by 174 percent a year between 1995 and 1998 to reach $301 billion, at the same time that the nation's gross domestic product was expanding at a compounded annual rate of 2.8 percent to reach $7.5 trillion. The researchers concluded that the U.S. domestic Internet economy ``by itself is one of the major economies in the world.'' If it were a nation, it would rank just behind Switzerland and ahead of Argentina in terms of gross domestic product. ``In less than a decade we've done what other industries have done in 100 years,'' said John Chambers John Chambers could be any of the following people:
Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. Inc., a major provider of Internet routing equipment that sponsored the path-breaking University of Texas survey. The Texas researchers said they compiled their results by observing 3,100 U.S. companies that generate all or part of their revenues from Internet products or services. As defined by the researchers, the Internet economy is made up of companies that directly generate all or some part of their revenues from Internet-related products and services, such as Cisco, Dell Computer and IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) Corp. To this group, they added both pure Internet sellers such as Amazon.com and eToys.com, and also measured the cyberspace Coined by William Gibson in his 1984 novel "Neuromancer," it is a futuristic computer network that people use by plugging their minds into it! The term now refers to the Internet or to the online or digital world in general. See Internet and virtual reality. Contrast with meatspace. business of such traditional firms as L.L. Bean. The team found that electronic commerce, the most readily visible component of the Internet economy, generated $102 billion of revenue in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. in 1998. It also estimated that the average revenue per Internet employee was $250,000 last year, against an overall U.S. average of $160,000 for non-Internet companies. VALUE Here's the economic value of four major U.S. industries: Internet $301 billion Autos $350 billion Telecommunications $270 billion Utilities $223 billion CAPTION(S): Box BOX: VALUE (See text) |
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