Electronic devices that process and store information at fast speeds.
The advanced technology produced by scientists and inventors during the twentieth century, especially during the two world wars, required the computation of scientific data faster than ever before. By 1930, the first mechanically operated computer was developed by an American named Vannevar Bush. When Europe entered World War II in 1939, John Atanassoff had already created the first digital computing device and Howard Aiken, conducting his research at Harvard University, had constructed the first fully automatic calculator. By the end of the war, the first elec tronic digital computer, utilizing hundreds of vacuum tubes, was operational at the University of Pennsylvania.
The device, known as Electronic Numerical Integrator and Calculator, was superseded by the development of Universal Automatic Computer (UNIVAC) in 1951. UNIVAC was the first device that was capable of performing both numerical and alphabetic calculations simultaneously. The research and development that occurred during the war, especially in the United States, yielded products such as the transistor, which was used during the 1950s and 1960s in mainframe computers, some of which were used to perform the calculations required for the development of missile technology and space exploration. Computer technology excelled during the 1970s and 1980s with the development of integrated circuits. The size and cost of the computer shrank, making the technology more affordable for businesses. During the computer revolution of the 1980s, the size of the computer diminished even more with the introduction of the personal computer. Individuals could access information stored in their computer or in computers being used by others within their company through the use of a network system. The personal computer became popular after the introduction of Microsoft’s point-and-click programs, commonly known as Windows. The average person could use a computer without having to know programming language.
Although government agencies and some of the largest corporations used computer technology during the formative years, the introduction of the personal computer revolutionized society. Millions of business transactions could be conducted within seconds. Dial-up modems were used initially to transmit information from one computer to another through the telephone lines. Access to the Internet, along with the use of faster equipment such as DSL or cable, allowed for even quicker communication. Companies located in one part of the world could communicate by e-mail with suppliers or buyers in another part of the world, bypassing the barriers of language (through translation programs) and time zones. Orders placed in the middle of the night could be shipped the next day. Both parties could track shipments to their destination through the use of barcodes read by optical scanners that transmit the information to computers.
The impact of the computer on trade has been phenomenal. Not only are businesses able to communicate quicker than with the traditional method of correspondence by mail, but also the computer has generated its own industry. Computer companies such as International Business Machines (IBM), Apple, Compaq, and Dell employ thousands of workers. In addition, the suppliers have staffed their operations. Computer software companies like Microsoft generate billions of dollars a year in sales. Hundreds of companies in the United States provide Internet access. Computer technology has been incorporated into electronic game devices such as Gameboy, XBox, and Playstation. In 2002, the sales generated from the sale of game software and devices exceeded $6.9 billion in the United States alone.
Computers have changed the way many people shop for consumer products. In 2002, Americans purchased more than $28 billion of goods on the Internet. Clothing, books, automobiles, personal computers, as well as hotel bookings and airline tickets ranked among the top items purchased. Most companies have established Web sites to attract new customers outside of their general geographic location. Besides retail sales, consumers also purchase goods through auctions such as eBay, Yahoo, Amazon, and uBid. In one week in August 2002, more than 32 million people visited these auction sites. The success of this marketplace has attracted the attention of government agencies that have begun auctioning off surplus government property online.
The widespread use of the computer and the Internet has resulted in changes in marketing strategies. Companies advertise their Web sites through traditional print, television, and radio media, but many also purchase pop-up ads that are displayed when consumers visit popular Web sites. Links from one site to another might also generate additional profits for a company through revenue sharing.
Consumers in industrialized countries such as the United States and those in western Europe use computers to manage their own financial accounts. Online billing paying is used by millions of households. Also, online trading has become popular. Whether at work or at home, the computer allows individuals to monitor and conduct stock transactions throughout the day. According to J.D. Power and Associates, 3.5 million households engaged in this form of trading in January 2000. The trend continued to climb in the United States, Germany, England, and Sweden as the stock market soared. After the terrorist attack of September 11, 2001, day trading declined as the stock profits vanished. With the rebound of the economy in the last months of 2003, the industry showed slight gains once again.
The rapidity of changes within the computer industry will continue to impact trade in the future. Smaller computerized chips have resulted in the development of the cell phone industry and the deployment of satellites for the transmission of voice and electronic data. Computers have led to many changes within society, and all of them have facilitated an increase in trade on a local, regional, and global basis.
Cynthia Clark Northrup
See also: Communication; Internet.
Nash, Stephen G. A History of Scientific Computing. Reading, MA: Addison-Wesley, 1990.
Pastore, Michael. “Online Trading Continues to Catch On.” March 9, 2000 (http://cyberatlas.internet.com/markets/finance/article/0,1323,5961_318491,00.html, accessed December 2003).
Shop.org. “Statistics: Vertical Markets” (www.shop.org/learn/stats_vm_popular.html, accessed December 2003).
“Top Online Marketplaces” (www.marketplacesnapshot.com/august2002.html, accessed December 2003).