Question

How might the global digital divide affect a low-income country’s ability to improve its global economic standing? Explain how this might affect the country’s ability to be competitive in a global marketplace.

Answer 1

Global digital divide will be affecting a low income country to help itself in improving the global economic standing as the company can help itself through promoting all the entrepreneur and all these innovators with the better platform and there will be a high degree of foreign direct inflows and foreign portfolio investment into these companies into to smaller countries and then there would be a global digital drive it will also mean that the investors will be looking to invest into the companies which have a potential of growing higher and in smaller markets. There are generally scope of growing higher because of under penetration in nature so these markets are highly underpenetrated and they have a possibility of maximizing the rate of returns for the the outsider investor and it would lead to a lot of foreign direct capital inflows in the country.

Global digital divide will be reflecting a situation in which there will be a disparity of availability of technology between the developed nation and the developing nation and other smaller Nations so there will also be a severe disparity of income and growth in this country as they will not be equal in nature so those who have grown will be more keen on exploitation of the situation and they will try to grow much more whereas those who have not been able to grow by utilisation of effective technology will be consistently stay as a laggard as they are not attractive from the investment point of view due to their past performance and future Expectations and it can be seen that it can hurt prospect of a small economy as investor will be avoiding this due to risk associated with past performance of these smaller economies along with the nature of defrauding the investors.