Introduction.edited.docxRunning Head: IMPACT OF TECHNOLOGICAL CHANGES 1
IMPACT OF TECHNOLOGICAL CHANGES 12
Impact of technological changes
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Table of content page
Introduction 3
Production, aggregate demand, supply and the prices level. 3
GDP change and economic growth 5
Employment and labor demand. 6
Credit demand and interest rate 8 Business cycles 9
Lessons learned as an economist student 9
Conclusion 10
References 11
Introduction
In this century, businesses, organizations, companies, and corporations have adopted the effective use of IT services as the primary mode of production despite the physical size of the organization. This has. Contributed to an increased has led to the worldwide growth of vas corporate organization. Robust and advanced systems and reliable IT services essentials enable competitive advantage that that makes companies tune on updates on the latest technology trends as far we digitalized production is concerned. Majorly this business approach focuses on economic development and continuous updating on computer systems that are being used. Despite the automated system working effective, efficient, and very fast, they span a wide range of arrays that help in problem-solving and innovative resources in the organization. Indeed, IT systems are significant and have engineered in the efforts of ripple effects on the internal function of the business executions (Terry,2017). It’s a tool that has improved the relationship between hardware abstractions and combines those smart applications that help the industrial process and scalability plan.
Production, aggregate demand, supply and the prices level.
Digitalized applications and systems use in companies have introduced an organized monetarization. Besides, the process has also enhanced service providence. The industrial set for revolution a real revolution which is based on the technological inventions which reveal the whole production system and designs that are applied. Capabilities of this software illustrate a manic application that performs human-like activities through power aided form. The software follows instructions that are coded and high programming languages. Other tools that are used include the robotics system designs, which are accurate and faster compared to human effort. Artificial intelligence produces these machines, which has the capability of controlling activities like human beings and recognized computer vision and speech recognition approach. Besides that, the neural network is another system that is a human being. The mode is connected to command, and an interaction processioning element called a neural system that controls.
Changes in technology have information has increased the level of the company's production scope. This is by the transformation aspect that increases its output production because of the modern business tools, which creates an enormous industrial process model. Technology has introduced accuracy and efficiency in production, and by so doing, the vague of dully increases. Through the adoption of automated robotic system industries have and advanced manufacturing mechanisms, the sector has made a significant bounded back long within the economy. Robotics has a sophisticated and ident nature of performing a complex task that human find it challenging. It has a cost reduction differential and estimated labor-saving, which has an increased output (Naim,2015).
For bases of fact, aggregate supply and demand of products determine the extend increased input-output function. As technology evolves, it has continually and in the long run, posted an aggregate demand supplying capital and labor within the company. Forces of demand and supply of a product are balanced with the influences of accelerated technological growth in firms. As the fundamental law of demand on aggregate argues, if quantity demand increases and the supply remain unchanged, a shortage occurs, leading to a higher price until the quantity demanded is pushed down and back to equilibrium. The shift in aggregate supply and demand; the model strategy has drastically increased after the technology applied production has introduced. Since the creation of products is technologically based, the cost of production is low. The workforce that is required in the entire chain of production is greatly reduced. Consequently, advanced tools and invented new models of marketing are profound to improve continuously. This has reduced the prices of products because the full costs in well evaluated, monitored by systems that have enhanced the quality of the product as well as a moderate quantity that fill the market niche available (Johness,2018).
GDP change and economic growth.
In the globalizing world of economy, the level of gross domestic product is defined by the attribute economic growth, and the inter-country income inequality technology difference. Science and advanced technological factors are a contributing factor toward more effective and enhanced productivity gain. GDP is the economic measure used to determine the standards produced in the economy. According to the growth principle of neo-classic, the theory states that technological transformation causes some increased capita per person and motivates a comprehensive saving and investment in the economy, which in returns increases the GDP level. Economic growth and structural changes are correlated with technology advancement and a positive evolution process development mechanism. However, the classical economic level increases the chance of the people living in their scope experience the effects on wealth growth. When the economy is favorable to all, there is tremendous employment opportunities and a reasonable standard of living. As a result, the inverse relationship between real income and growth level in the economy has a positive impact on conforming and the classical level of economic growth.
Indeed, technology has contributed to GDP and economic growth define and transformational novelty concepts. All factors that affect technology such as original production, production process, capacity, and market target size supplemental input and more so develop and advanced infrastructure improve the level of the economy. Sufficient production and balanced distribution of technical revenue capacity enhance a guarantee economic development and GDP through the size full and average cost of living. Ideally, scientific inventions and technological changes have motivated powers in the formulation of economic policies that ensure a decisive run of the GDP runs effectively. This approach has also increased the income level within the people with an increase in revenue earned and a common mechanism of solving economic difficulties, which increases social wealth (Johness2018).
Employment and labor demand.
In the last few years ago, companies have appreciated the role of technology in the production processes. This has ultimately increased quality and productivity levels because machines are not subject to the law of diminishing returns. Unfortunately, this has caused a low demand of employees since robotic and other software's are performing the task more than human efforts could do. Because of the capabilities of a robot performing routine jobs, manual work has been fetched out in many organizations. Consequently, this has resulted in the displacement effects of employees from an area that has been computerized and transverse by systems. At this point, the companies can only consider retaining staff who have the technical know-how of operating machines introduced. Cheap and quality input spills over the firm and creates an automated industrial output. This affects the income flow of staff members. When technology has complimented labor, workers have nothing else apart from spilling over from the complimentary automated about services; majority end up losing the job.
The structural form of unemployment is likely to experience, especially in a growing economy. Occupational immobility's as people look for new occupations and geographical shifting as an individual for an accommodative and favorable job that matches their skills is experienced. Real wage associated challenges in labor harm the structural changes in the economy because of human versus system competitiveness. The technology change has, therefore, continued to increase not only the rate of unemployment case but also a high level of dependency on the economy. The artificial machine has replaced human labor, perhaps causing a drastic decrease in employment in the economic system. Technology innovation strategy has indeed made a structural unemployment argument after the company has rationalized hence restraining the economy (Gabriel,2019).
Credit demand and interest rate
Changes in technology are one of the factors that affect credit demand is a fast-growing economy. Deliberately use of the application system has encouraged financial profiling and brainstorming on various opportunities that most likely to improve the credit scorecard. For instance, the use of computers in the money industry has a significant role in monitoring and evaluating payment histories and keeping data records in an appropriate way. This act acts as a reference to lenders to examine the chances of making a payment. Because of new inventions, new methods, and advanced software, there has been an increase in the level of credit demand. It has been positively navigated by the fact that banks and other lending organization can easily access the customer's credit score and credit portfolio and the level of making outstanding payment (Francis,2019)
The stock exchange market has launched a reliable monitory application and global software's that regulate the level of interest rates. Unfortunately, there various which have an impact on the scale despite that one cannot control them. Amongst them include the supply and demand, inflation, and federal funds rate. When the lender has good access to monitoring this factor, their chances of the interest rate being regulated to a low and affordable level. Besides, the credit score is a tool that is controlled by and analyzed by the system to determine the interest rates. Loan amount and durations and guarantee agreement are captured computer system reference if the need arises. Growth in the technology sector has continuously invented new mechanisms used in the banking system. As a result, the lender can be in a position to monitor and predict the chances of reliable customers paying off the loan and how well the credit should be utilized.
Business cycles
The business cycle is the predicted nature of the rising and fall of a given economic growth that occurs at a given set of times. The period uses tools that analyze the industrial, financial positions, and technological aided phases, which include expansion, peak, contracting, and trough. It takes time to analyses economic indicators of the business cycles, such as employment and real individual income-based. That's has a positive contribution in analyzing monetary policy, which lowers interest rates through the expansion of expansionary fiscal policy. Businesses can, therefore, have good production, distribution, and a well-controlled team, which is a crucial element to business success. Technology has geared its effort on modern forms of data storage and retrieval services and quick transactions, which is a road map to business development as a success.
Lessons learned as an economist student
As an economist student, I have learned that technology is a significant contribution to business and organization striving toward its success. When the production process is technologically connected, the quality and quantity of products produced are enhanced. The value of IT in every typical business should not be ignored as it forms the business infrastructure through practical and new inventions in the market. Also, money lending institutions should consider the contraption of online-based loans transaction for overnight borrowing to reduce the high-interest level (Gabriel,2019).
Conclusion
Technology advancement has created enormous economic impact and another benefit in the industrial processes sector. Automation of services and products through robotics and IT systems has transformed industries toward the realization of producing sophisticated merchandise goods and services. It has also enhanced the relationship between the level of economic and societal trends of events. Indeed, firms, businesses, and corporations should improve technology in the production to maximize profit made, resilience, and robust change in the institutional performance. Intensive and effective data management through technology-aided designs such as cloud computing Is very critical in every business which has a growth strategy.
Francis mercy. (2019, March 11). What Affects Your Credit Scores? Retrieved from https://www.experian.com/blogs/ask-experian/credit-education/score-basics/what-affects-your-credit-scores/
Gabriel Wood. (2019, May 31). 6 Factors That Affect Your Interest Rate. Retrieved from https://www.nextadvisor.com/6-factors-that-affect-your-interest-rate/
Johness paulme. (2018, October 29). 6 Fundamental Factors that Affect Interest Rates. Retrieved from https://pacresmortgage.com/factors-affect-interest-rates/
Naim, D. M., & Ahmad, M. I. (2015). Natural Resources And Technology (Penerbit USM). Penang, Malaysia: Penerbit USM.
Terry Asten. (2017). Business Cycles. Retrieved from https://www.inc.com/encyclopedia/business-cycles.html
