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Business General Technology

Negative effects of online shopping

Today, more consumers shop online than they do in retail stores; online shopping is no longer just a fad or a passing phase. It is a way of life that we have all gotten used to for the simple reason it takes us less time to shop online than it would, were we to go head to the local retail store or to the local grocers. But online shopping comes with its own drawbacks and it is time that we took a closer look at some of them.

Negative effects of online shopping

  • Choosing the right product: Since you are planning to shop online, it would not be possible for you to try on the new blazer or the brand new jeans that you have set your heart on purchasing. The same applies to all products where it would be either advisable to try them out before purchasing them or at least sample their wares. Instead, you would have to settle for the information listed on the website and hope that the product in question turns to be all right. One of the common reasons for most people to return their online purchases is that it was not in the right size.
  • Addictive: Recent studies have shown how online shopping, like regular shopping, can turn out to be addictive. Not everyone gets addicted to online shopping but there are more than a few who are susceptible to the same. Addicts often find it hard to quit purchasing items online to the point that they would soon start purchasing items they do not need and it is only a matter of time before they chalk up a massive debt.
  • Hidden costs: Most products when purchased online come with hidden costs. If you thought that the final price listed on the website is all there is and that you do not have to pay more, you would be mistaken. More often than not, online stores charge tax along with packing and courier charges and in the end, you would end up with a massive bill.
  • Security: Since you would be utilizing your credit cards to shop online, you may want to realize that most online vendors store your credit card information so that you can check out faster. But this puts you at risk of a data breach and puts you at risk of having your card details stolen. While companies assure customers that all customers’ related data is kept secure and stored separately on a different server, you would still be at risk of having your card information stolen.

These are some  of the negatives associated with online shopping; no one is claiming that online shopping is bad but that it has its own shortcomings. You need to be aware of the negative effects of online shopping before opting to do just that.  And it is always a good idea to shop with a debit card rather than a credit card for obvious reasons.  So the next time you plan to do some online shopping, you may want to take a few precautions.

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Business General

Negative effects of free trade

Free trade is meant to encourage trade and commerce by removing the various trade tariffs and making it possible for traders from all over the world to become more competitive. It is but natural for various countries to become more protective of their own products and hence the need for a centralized agency to monitor, regulate and to arbitrate in all trade-related disputes. That’s the reason why the world trade organization was created in the first place. But despite several free trade agreements being inked between several nations under the aegis of WTO, the negative effects of such agreements became more apparent over the decades.

Negative effects of free trade

Lowered wages:  Free trade agreements essentially imply that two or more nations are willing to remove various trade barriers, adjust or remove various trade tariffs so as to enable traders from these nations to be able to compete more effectively with each other. As a result, most free trade agreements are often viewed as a race to the bottom, where companies slash prices all across the board in order to compete effectively with others. As a result, most of these companies offset the basement prices by slashing wages and even forcing their workers to work in unhealthy and unsanitary conditions. Even a few US companies had recently been fined for the same, case in example, the Maquiladoras.

Illegal immigration: A few companies have started to employ illegal immigrants since they would not have any legal protection and that the company in question can pay them below the legal minimum wage. Hiring illegal migrants also means that the company would not have to pay any tax either. Surprisingly most companies attempt to hire illegal migrants and utilize the various benefits in order to compete more effectively on the global market.

Child labor: As local companies slash wages in order to make their products more competitive in the global market, one of the unexpected byproducts of such a move was the renewed focus on child labor with more children being hired than ever before. Child labor is illegal but local governments often lack the adequate manpower to prevent the same. One reason why children are hired in place of adults is that they are nimble and are only paid half of what an adult worker earns.

Environmental damage: As local farmers attempt to compete effectively with their counterparts across the world, there is a renewed focus to increase the production yield. As a result, more tracts of forested land and natural habitats are being cleared across the world at an alarming rate. A recent study highlighted the fact that several species, both flora and fauna face an immediate threat of extinction as a result of the loss of their natural habitats. And if this continues the same way, then our environment and even our way of life would be in immediate danger.

These are some of the negative effects of free trade and more often than not, it is the underdeveloped nations that had to pay the price of entering into a free trade agreement with a developed nation.

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Business

Negative effects of NAFTA

NAFTA or the North American free trade agreement came into effect from January 1st, 1994. And while certain aspects of the trade agreement certainly did provide an impetus to the US economy, the negatives have stated to outweigh some of the positive outcomes of the trade agreement over the last few years, vis-à-vis Mexico. Some of the negatives of NAFTA are listed below,

  • Job loss: Since labor is cheaper in Mexico, many US-based companies simply relocated their companies across the border, thereby causing a large enough loss of jobs. If that was not enough, other companies threatened workers with plant closure and relocation to Mexico to prevent their workers from forming unions. The sector which was hit the most by this move to Mexico happened to be manufacturing with massive job losses being reported in states like CA, NY, Michigan and Texas. The industries that stood to be most affected by this was textiles, computer hardware as well as electrical appliances
  • Wage suppression: Given the fact that there is an increase in illegal immigration which translates to cheap labor for most of these companies, it is not exactly surprising to learn that these same companies used the threat of low labor to suppress wages. In fact, a high proportion of companies, especially in the manufacturing sector did just that. And the fact that most of the affected workers were prevented from joining any union effectively meant that they were unable to better protect their rights.
  • Trade tariffs: While NAFTA did away with trade tariffs and while that’s essentially a good thing, it had disastrous results right across the border. While the US government subsidized nearly 40% of farm income, it meant that US farmers could now export their products to markets like Mexico and Canada at very little cost. As a result, most of the small farmers in Mexico were unable to compete effectively with US farm products and as a result, most of these farmers have shut their farms for good.
  • Environmental degradation: In order to compete more effectively with cheap farm products from US, as a result of NAFTA, Mexican farmers started rampant deforestation and excess usage of fertilizer to increase their yield. As a result, Mexico’s environment has taken a hit and it’s all thanks to NAFTA.
  • Maquiladora exploitation: One of the unforeseen impacts of NAFTA happens to be Maquiladora exploitation. Maquiladora is basically where US-based companies are located close to the border and are allowed to employ Mexican workers. As a result of NAFTA and removal of tariffs, these companies pay less and exploit these workers. With working hours extending to more than 12 hours per day, it has become obvious that NAFTA has resulted in human exploitation.

These are some of the associated negative effects of the NAFTA agreement. While the agreement in both necessary and essential, it still needs to be tweaked to protect both the worker rights and the environment.

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Business General

Positive and negative effects of the industrial revolution

The industrial revolution was the period from 1760 to 1820 when the economies of rural America and Europe became urban and industrial, they transitioned from being agricultural economies to those of industrial ones. In the 1700’s when the industrial revolution began in Britain, the way of manufacturing goods completely changed. Goods were usually manufactured using simple machines and hand tools in people’s homes and with the advent of the industrial revolution, there arrived specialized machinery that were set-up in huge factories where goods were mass produced.
Positive and negative effects of the industrial revolution
There were huge improvements in the textile and iron industries. Steam locomotives were also developed during this period. This brought in improved communication, transportation and banking services. There were huge volumes of goods being produced, that was seen never before by the likes of men. There was also greater variety and it improved the standard of living for some. But, the standard of living for a lot was miserable, to say the least. The wealthy and business owners had the means and knowledge to make more money while the workers in the factories suffered. So, the industrial revolution has its positives and its negatives as we can see. So, let me list them down for you.

Positive effects of the industrial revolution:

Innovation:
The industrial revolution ushered in an era of innovation that would change the way humans lived. The steam engine paved way for faster transport. The steam engine powered trains increased trade and communication between places that previously were too far to have proper economic ties with. Rail tracks and rails became more common across the world. The steam powered boats also made maritime travel faster. Steam powered ships were faster and steadier even in dire weather conditions. Agriculture was also improved. Farmers found ways to grow more and also make farms more uniform and larger, they found a crop rotation system that allowed them to use the land throughout the year and not wait for seasons to pass. Inventions and innovations in the textile industry such as the flying shuttle, spinning jenny and power looms all together almost increased textile production ten-fold. The first synthetic dyes were also invented during this period. There were also new methods to produce cast iron more easily and methods to mass produce steel were also found during this period. Telegraphs and electric power and lighting also made their way to the scene. It was an era of great innovation and invention. The likes of which paved the way for the modern world we live in.

More and More:
There were higher standards of living with a portion of the population having more disposable income than before. There were more jobs than previously available, factories needed more workers than ever before. Products became more affordable due to mass production and there was also a larger variety than ever before. Cities started developing, gone were the days where people lived in small towns or villages. Concrete jungles where millions resided started taking shape. Services like banking, communication, transportation all saw an increase in number and quality. Telegraph lines were successfully laid across the Atlantic. The economy saw great growth during this period.

Negative effects of the industrial revolution:

The condition of the poor and working class:
The weaker sections of the society now had it more rough than ever. A lot of people form rural areas migrated to cities in search of jobs as back home in their small towns and villages, their home based small scale industries couldn’t compete with the mass-produced goods of the factories with advanced machinery. They couldn’t compete either in quality or price and hence just shifted to cities in search of jobs. However, even though there were more jobs than ever, there were also more people than ever who were looking for jobs. This led to the creation of slums and since demand for jobs was high, factory owners chose to exploit the opportunity and provide very low wage. Even though the jobs were badly paid for, a lot of people rushed to take these jobs as they were in a very desperate state. Survival was the primary agenda. This period also saw the workers working in some of the most dangerous conditions. Cramped spaces with machines which had dangerous parts exposed were common place. The number of accidents and deaths that occurred in factories was quite high. Workers also worked anywhere between 10-14 hour shifts 6 days a week and were also paid minimal wages for the same.

Child labor:
To make matters worse. Factory owners chose to exploit children too. Children could do the same work an adult did at the fraction of an adult’s wage and they were easier to control and also were small and this made them ideal to work in small confined areas that a normal adult wouldn’t fit in.

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Business General Technology

Positive and negatives of Bitcoin

Everyone among us who has interest in the financial updates of the economy in the world must be aware of the term “Bitcoin”. The term is coined in 2009 when it the first cryptocurrency in the world was launched. The advances in the technology has provoked the economist to think differently and progressive to move ahead and ahead. The launch of Bitcoin is one of the substantial evident that our economist are working 24*7 on their toes to bring the change in the existing economy of the world. Though it is a volatile virtual currency, it has all its rights reserved to a private party instead of a government involvement. It is not all regulated and issued by any government authority. The rights are still preserved with a private party.

Positive and negatives of Bitcoin

The debate on the impact of Bitcoin on the world’s economy is under an aggressive debate. There are many of the points that supports its impactful existence where as few of the points are responsible for making it not a suitable option to go for in future for a longer time. In this write –up ,we will be focusing on both the sides of the coin and will throw a light on the various highlights of the considerations of Bitcoin as a currency.

Positive impact of Bitcoin:

There are many of the positive impacts of investing and keeping Bitcoin as it can help in easing the economy of the country as well as the individual. Here is the list of positive benefits of using Bitcoin:

Unaffected with inflation: This is one of the best features of Bitcoin as it is going to be completely unaffected with the inflation. The decided quantity of Bitcoin is 21 million only hence there is no chance to face any inflation with Bitcoin.

No risk associated: As the currency is not regulated by any of the government authority, there is a low or no risk with the currency collapse.

Easy to operate: The currency is all operated under the hands of digitization which makes it easy and compatible for all to understand and use it at anywhere, anytime.  Moreover the concept of Bitcoin is easy and could be understood by anyone who is interested in investing.  One can easily keep a strict track on the ups and lows of the currency rate as it can be operated online through any of the internet supported devices.

Higher transparency in operations: As anyone can check the status of currency rates, it become easy and transparent to keep an easy track on the operations associated with it.

 

Negative impacts of Bitcoin

Moving ahead, we have a list of points that shows the negative impacts of using Bitcoin currency.

These are:

Lack of awareness: The important fact that we cannot deny is that many of the people are not aware and trained to deal with digital currencies. People need a special session to understand the correct optimization of these currencies in their life. There are many payment gateways that do not support Bitcoin as their currency. It becomes difficult to operate with such channels, if we speak about Bitcoin.

Volatility: There is a limitation on the count of coins at Bitcoin which makes it highly volatile in nature. There is a high increase in the coins of Bitcoin which further makes it on a high risk.

In a development phase: Though Bitcoin was launched in 2009, still the currency is under observation. There are many possible growth channels that are supposed to be done completely to bring the actual potential of Bitcoin out in the front of the world.

Need of internet: The other factor that contributes to the negatives of Bitcoin is that it always requires a high speed of internet to carry out the transactions. However it is not possible to stay connected with internet at every time.

In conclusion, we have an open debate that supports its existence as well as doubts its sustainability in the market for longer time. Bitcoin itself is not a perfect term but still it continues with many of the perfections with it. The final call to go for it or avoid the Bitcoin is always in hand of the user. One must weigh the positive as well as negative impacts thoroughly to come over a conclusion. This article depicts the actual facts behind the term “Bitcoin” …….. the final decision is in your hands! Think wisely before moving towards any decision for it!

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Business General

Positives and negatives of Economic Growth

Positives and negatives of Economic Growth

Positives and negatives of Economic Growth

We would have often heard of increase or decrease in GDP, what does this mean? GDP is the way we define the economic growth. Increase in GDP is the economic growth. Which in turn defines the productivity of the country. Usually bringing in the advanced technology, increasing the literacy rates and increase in production as well as quality of goods and services, defines the economic growth. And this productivity should be more, than compared to before period of time.

Causes of the Economic Growth

Increase in immigration and birth rates also increases the economic growth. The increase in the above, in turn increases more labor and more production of goods and services, which is the “economic growth”. But not all the goods and services contribute to economic growth. Increase in consumption, trade i.e. net exports and imports, investment on firms stand as causes for economic growth.

Positives of the Economic Growth:

Increase In employment factors

Increase in production of goods and services reflects an increase in call for more labors as well as employees for jobs. So employment curve gradually increases, resulting in proper sharing of nation’s wealth. It also relates to the benefit of the business people as it increases profits. If you notice growth is an important factor for every nation, because it is the way we can divide the wealth pie between rich and poor and poverty can be reduced. And every country’s wish to eliminate the poverty.

No taxes if there is an Economic Growth

If country’s revenue increases then there is no need for tax imposition on people. Because now the government of that country is having more revenue with it to invest on poor people as well as on welfare of the people like, providing financial supports and goods to public. As of now the country will be having good wealth to spend on people. It invests on bringing in more advanced technology and greater resources.

Country’s pride lies in Economic Growth

If country’s GDP increases, it means they are having advanced and upgraded techniques for their people like, advanced methods for diseases, hybrid cars and many more which helps the country to extend its technology and put in to use to actually help other countries as well as people will have more purpose for their lives. It leads to more relations with other countries regarding exports and imports and becomes more civilized country globally.
Benefits a person experiences by Economic Growth.

Person in the society experiences:

Profits in business, higher productivity followed by higher wages, lower costs per unit in the market, standard of living, lifestyle increases, and labor productivity increases, life assurance increases.

Negatives of the Economic Growth:

Effects to natural resources and consumption of more resources

Due to increase in production, there will be an increase in industry sector as well as production sector resulting in increase in pollution and industry effluents, less space for transportation as more industries come to picture. All this will have bad consequences such as loss of natural resources due to pollution and deforestation.
People and industry firms tend to consume more and more resources for production of more goods and services, for example fuel, petrol, minerals, scarce resources.

Higher costs of goods and services

Sometimes increase in real GDP, creates changes that people cannot reform and experience poverty as the pie of the wealth of the country may not be distributed properly. Obviously there is an increase in revenue of the country, but the rich get richer and poor poorer. This type of changes and inequalities are seen more in up grading countries and fast growing countries. The people due to increased economic growth experience, higher costs and this is called inflation.

Culture and country’s heritage

In this journey of increasing productivity, there will be more advanced technology and new practices that we lose the control on our past practices and culture.
There is a common flaw which every country faces, while undergoing economic growth. I.e. if the country is getting developed and advanced, then population increases as well as immigrants increase, due to available resources in this country, now people migrate from villages and towns to cities, and thus creating overpopulation in cities, which in turn is nothing but increased pressure on available resources and, this leads to scarcity of available resources and finally increase of prices of goods and prices. Which is a counter part of advantage of economic growth.

Only some people will have access to it

Some people who live in remote areas may not have access to this increasing technology and may not take advantage of this. They may not get benefits of literacy affects or hybrid cars. Again same thing repeats, rich get access but poor remain the same without benefits.

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Business

Positive and negative effects of e-business

Positive and negative effects of e-business

Positive and negative effects of e-business

Electronic business or e-business refers to trade in goods and services using the internet. Such business transactions take place among businesses or individuals. In addition to buying and selling products and services online, it includes supply chain management, electronic order processing, and customer relationship management. Due to wide reach and availability of the internet, major corporations are conducting e-business to make supplies, collaborate on sales promotions and conduct joint research. Figures say that the climbing internet usage rate assures e-business growth. The trade in e-services provides employment to young people in several developing countries. At the same time, every business kind has pros and cons which we will discuss here.

Positive effects of e-business:

Here are few reasons why businessmen prefer e-business over conventional one.

Develops global economy

Every country in this world produces different raw materials as per their abilities and capacities of their land surface. They utilize them in the production of finished goods. No single country produce all the goods we use today. To share the fruits of all the manufactured goods produced across the world, international community stresses upon globalization. E-business contributes in developing global economy by trading across international borders and reaching customers in the four corners of the world.

Promotes Equality

E-business supplies numerous e-services and is a superior platform for services such as teaching. An individual with excellent knowledge in a specific field, say physics, can start online classes and educate children regardless of their location. In this way, e-business can impart similar and reliable knowledge among young kids of different nations and promote equality. Thus, it delivers win-win results for both business owner and consumer.

Moderate overhead cost

An e-business eliminates the need for a physical location to set up a business. It consumes cheap phones, rents and utility bills than traditional businesses. The negligible demand for man force reduces the cost of paying employees. Interestingly, one can run a business from home by transacting through a website. For the start-up businesses, it is a productive tool.

Read also: Positive and negative effects of eCommerce

Low transaction cost

A conventional business requires workforce who helps in completing the entire transaction. Also, extra hands mean increased amount. But an e-business requires limited man force to complete an online transaction. Here, the internet is an alternative to a salesperson. Also, the online payment processing software eliminates the need for a store clerk. Hence, e-business makes transactions cost-effective and limits the burden on the companies.

Open business hours

One prime necessity of an e-business is an internet. Today, the internet is available 24 hours a day, which means a business stay open. In this way, e-business breaks down the time barrier that a typical business encounter and increases flexibility.

Negative effects of e-business:

Though internet grants indefinite benefits, the online stores still face several challenges.

Security issues

Cyber attack is a major concern in an e-business. Hackers manipulate business websites to gain financial data and initiate theft. For an online shopping, the customers need to provide a shipping address, credit card details, and contact details. Sharing of private information can put them in danger if hacked. Due to this reason, an e-business finds it difficult to attract customers. This, in turn, affects its profitability and growth. Also, the time required to learn good security measures is a major hindrance.

Extended delivery time

One prefers buying a physical good from a local store rather than ordering it online. As delivery takes few days to reach the end customer, who pays at the time of ordering. E-business benefits little to the consumer in such cases. Due to this, groceries and confectionery product e-business makes small profits.

Lacks physical proximity

A physical touch and smell of a product influence a person’s decision to buy it. An e-business offers no such opportunity to its customers. This factor is a major obstacle to the expansion of various online stores such as garments, leather or shoes among others.

Reserved business

The companies across the globe face numerous challenges which include technology unavailability, expertise dearth, and shipping of grand products. Political issues among few nations lead to the legal restriction on some products from specific countries. Thus, a few companies can participate in an e-business.

Due to the increased internet benefits in the commercial sector, e-business is expanding at a rapid pace. Governments across the world are making productive policies in this specific field. Though it possesses stressful limitations, one can still eat desired fruits by implementing effective measures.

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