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The short term view about Payment gateway for school By kabir khan

  in Business | Published 2015-01-24 04:24:25 | 111 Reads | Unrated

Summary

Further-more, e-business payment gateway for college promotes greater economies of specialization within firms (or nations, in the case of international trade) by lowering transactions costs with other firms or nations.

Full Content

The next section explains how e-business affects GDP, national growth, and monetary and fiscal policy. A country's GDP, which is a measure of total economic output, is a function of its physical and human capital, other resources, and the production processes used to turn inputs into output. The use of ICT by business payment gateway for school increases GDP and economic growth by affecting all of these elements. To begin with, the information industry is itself a category in the GDP accounts, making up nearly four percent of US nation

al income in 2008. More important is the way ICT makes other industries more productive. Investment in ICT increases the amount of physical capital, resulting in increased domestic output across the economy. E-business also makes labor and the production process itself more efficient, which will result in long run economic growth.

Monetary policy refers to how a central bank uses the money supply to influence interest rates, with the purpose of promoting sustainable economic growth. A key goal of monetary policy in most nations is price stability. E-business can produce significant cost reductions that lead to deflationary pressures. E-payments and e-money also affect monetary policy by creating "inside money", which is money produced by the private sector instead of by the central bank. While mainstream monetary economics takes the passive view of inside money (i.e., that it has no role in the transmission of monetary policy, some commentators argue that inside money should change the goal of policy.

Fiscal policy refers to actions of the government involving spending or taxation undertaken with the goal of economic growth or stability. E-commerce creates new avenues for avoidance of states sales taxes, and thus may limit a state government's power to raise revenue and fund its spending.

The theoretical implications of e-business on the macro economy are far reaching, because ICT increases productivity, enhances competition, and broadens consumer choice. However, quantifying how e-business affects the economy is difficult, because the impacts are largely intangible. For example, ICT does not merely add to the physical capital stock of a firm, but can transform the nature of the entire production, sales, and distribution process. Early attempts at measurement led to a paradox: ICT could be found everywhere but in the productivity statistics. Many recent empirical efforts, however, overcome the problem of intangibility and find that ICT adoption has a sizeable affect on national wealth and productivity.

In the short term, investment in ICT increases economic growth by adding to the capital stock of a nation, which makes labor more productive. Jorgenson and Vu (2005) find that investment in ICT capital accounted for 0.7 percentage points of growth in G7 countries during 1995-2003, which was about half of the contribution of capital to growth and about one quarter of total growth.

In the longer term, use of ICT by business also spurs growth in total factor productivity (TFP). TFP refers to the part of output not directly explained by measurable input usage. ICT enhances productivity by improving the efficiency of capital and labor and enabling greater technological innovation in the production process (UNCTAD, 2008). Further-more, e-business payment gateway for college promotes greater economies of specialization within firms (or nations, in the case of international trade) by lowering transactions costs with other firms or nations. Inputs and services formerly produced within the firm or nation can be more easily provided from without via e-business. Economies of specialization in production can then lead to higher productivity.

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Feepal  is the fastest growing online community for   payment gateway for school Relevant and Much needed information about including latest news about online payment and payment gateway  for college Current Affairs and CSAT is updated on a regular basis.

 

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