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IT contributes to economic growth. Discuss the various channels which this takes place supporting the fact that developed countries have invested heavily in IT.

      

IT contributes to economic growth. Discuss the various channels which this takes place supporting the fact that developed countries have invested heavily in IT.

  

Answers


Faith
IT enables more people to work this increasing economic output and thus enhancing economic growth. These are people with more work flexibility and people with disabilities. IT enables people to be self employed thus contributing to economic growth.
IT has led to the creation of globalized markets though the use of visa and banking services that allow money transfers across borders, emails and telecommunication services that allow communication across borders and computer logistics systems that allow companies to weave together multinational supply chains. IT enables firms to achieve greater economies of scale and exerts pressure on them to increase competitiveness.
IT avails tools to managers to enable them make better decisions hence improving firm performance. IT is creating real time Enterprises that are able to respond to changes in business instantaneously.
Faimus answered the question on February 7, 2018 at 17:59


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