Internet and WWW (Internet and World Wide Web overview

Overview

Discuss how the Internet works Understand ways to access the Internet Identify a URL Search for information on the Web Describe the types of Web pages Recognize how Web pages use graphics, animation, audio, video, and virtual reality

Define Webcasting Describe the uses of electronic commerce (e-commerce) Explain how e-mail, FTP, newsgroups and message boards, mailing lists, chat rooms, and instant messaging work Identify the rules of netiquette

This chapter introduces one of the most significant innovations of the past half century – the Internet. The Internet is defined, and the history of the Internet is detailed. You discover how the Internet works and learn about Internet service providers and online services, connecting to the Internet, how data travels the Internet, and Internet addresses. The World Wide Web, search engines, and multimedia on the Web are explained. You become familiar with Webcasting, electronic commerce, Web publishing, and other Internet services including e-mail, FTP, Telnet, newsgroups, mailing lists, chat rooms, and instant messaging. Finally, netiquette, the Internet code of acceptable behavior by users, is described.

      Discuss How The Internet Works

The Internet is a worldwide collection of networks that links millions of businesses, government offices, educational institutions, and individuals. Data is transferred over the Internet using servers, which are computers that manage network resources and provide centralized storage areas, and clients, which are computers that can access the contents of the storage areas. The data travels over communications lines. Each computer or device on a communications line has a numeric address called an IP (Internet protocol) address, the text version of which is called a domain name. Every time you specify a domain name, a DNS (domain name system) server translates the domain name into its associated IP address, so data can route to the correct computer.

      Understand Ways To Access The Internet

You can access the Internet through an Internet service provider, an online service provider, or a wireless service provider. An Internet service provider (ISP) provides temporary Internet connections to individuals and companies. An online service provider (OSP) also supplies Internet access, in addition to a variety of special content and services. A wireless service provider (WSP) provides wireless Internet access to users with wireless modems or Web-enabled handheld computers or devices.

Employees and students often connect to the Internet through a business or school network that connects to a service provider. For home or small business users, dial-up access provides an easy and inexpensive way to connect to the Internet. With dial-up access, you use a computer, a modem, and a regular telephone line to dial into an ISP or OSP. Some home and small business users opt for newer, high-speed technologies. DSL (digital subscriber line) provides high-speed connections over a regular copper telephone line. A cable modem provides high-speed Internet connections through a cable television network.

     Identify A URL

The most widely used service on the Internet is the World Wide Web. The World Wide Web (WWW or Web) consists of a worldwide collection of electronic documents called Web pages. A browser is a software program used to access and view Web pages. Each Web page has a unique address, called a URL(Uniform Resource Locator), that tells a browser where to locate the Web page. A URL consists of a protocol, domain name, and sometimes the path to a specific Web page or location on a Web page. Most URLs begin with http://, which stands for hypertext transfer protocol, the communications standard that enables pages to transfer on the Web.

      Search For Information On The Web

A search engine is a software program you can use to find Web sites, Web pages, and Internet files. To find a Web page or pages, you enter a relevant word or phrase, called search text or keywords, in the search engine’s text box. Many search engines then use a program called a spider to read pages on Web sites and create a list of pages that contain the keywords. Any Web page that is listed as the result of the search is called a hit. Each hit is a link that can be clicked to display the associated Web site or Web page.

      Describe The Types Of Web Pages

There are six basic types of Web pages. An advocacy Web page contains content that describes a cause, opinion, or idea. A business/marketing Web pagecontains content that promotes or sells products or services. An informational Web page contains factual information. A news Web page contains newsworthy material including stories and articles relating to current events, life, money, sports, and the weather. A portal Web page offers a variety of Internet services from a single, convenient location. A personal Web page is maintained by a private individual who normally is not associated with any organization.

      Recognize How Web Pages Use Graphics, Animation, Audio, Video, And Virtual Reality

Many exciting Web pages use multimedia. Multimedia refers to any application that integrates text with one of the following elements: graphics, sound, video, virtual reality, or other media elements.

A graphic is a digital representation of information such as a drawing, chart, or photograph. Two common file formats for graphical images on the Web are JPEG(Joint Photographic Experts Group) and GIF (Graphics Interchange Format), which use compression techniques to reduce the size of graphics files and thus speed downloading.

Animation is the appearance of motion created by displaying a series of still images in rapid sequence. One popular type of animation, called an animated GIF, uses computer animation and graphics software to combine several images into a single GIF file.

Audio is music, speech, or any other sound. A common format for audio files on the Web is MP3, a popular technology that compresses audio. More advanced Web audio applications use streaming audio, which transfers audio data in a continuous and even flow, allowing users to listen to the sound as it downloads. Videoconsists of full-motion images that are played back at various speeds. Video files often are quite large in size. The Moving Pictures Experts Group (MPEG) defines a popular video compression standard. Streaming video allows you to view longer or live video images as they are downloaded.

Virtual reality (VR) is the use of computers to simulate a real or imagined environment that appears as a three-dimensional (3-D) space. A VR world is an entire 3-D site that contains infinite space and depth.

      Define Webcasting

Pull technology is a method of obtaining information that relies on a client such as your computer to request a Web page from a server. On the other hand,Webcasting, also called push technology, is a method of obtaining information in which a server automatically downloads content to your computer at regular intervals or whenever updates are made to the site. Webcasting saves time by delivering information at regular intervals and allows users to view Web content when they are offline, that is, when they are not connected to the Internet.

      Describe The Uses Of Electronic Commerce (E-Commerce)

Electronic commerce (e-commerce) is a financial business transaction that occurs over an electronic network such as the Internet. Today, there are three types of e-commerce. Business to consumer (B-to-B or B2C) e-commerce consists of the sale of goods to the general public. Customers visit an online business through an electronic storefront, which contains descriptions, graphics, and a shopping cart that allows customers to collect their purchases. Consumer to consumer (C-to-C or C2C) e-commerce occurs when one consumer sells directly to another. An online auction is an example of consumer to consumer e-commerce. Business to business (B-to-B or B2B) e-commerce, which is the most prevalent type of e-commerce, takes place between businesses, with businesses typically providing services to other businesses.

    Explain How E-Mail, FTP, Newsgroups And Message Boards, Mailing Lists, Chat Rooms, And Instant Messaging Work

A variety of services are used widely on the Internet, including e-mail, FTP, newsgroups and message boards, mailing lists, chat rooms, and instant messaging. E-mail (electronic mail) is the transmission of messages and files via a computer network. You use an e-mail program to create, send, receive, forward, store, print, and delete messages. To receive messages, you need an e-mail address, which is a combination of a username and a domain name that identifies a user.

FTP (File Transfer Protocol) is an Internet standard that allows you to upload and download files with other computers on the Internet. An FTP server is a computer that allows you to use FTP to upload files to, and download files from, an FTP site. With anonymous FTP, anyone can transfer some, if not all, available files. A newsgroup is an online area in which users conduct written discussions about a particular subject. The computer that stores and distributes newsgroup messages is called a news server. You use a program called a newsreader to access a newsgroup, read previously entered messages (called articles), and add (post) messages of your own.

A thread consists of the original article and all subsequent related replies. In a moderated newsgroup, a moderator reviews articles and posts them, if appropriate. A message board is a popular Web-based type of discussion group that does not require a newsreader and typically is easier to use than a newsgroup. A mailing list is a group of e-mail names and addresses given a single name. To add your e-mail name and address to a mailing list you subscribe to it; to remove your name, you unsubscribe.

A chat is real-time (meaning everyone involved in the chat is online at the same time) typed conversation that takes place on a computer. A location on an Internet server that permits users to chat is called a chat room. Some chat rooms support voice chats and video chats, where you can hear or see others and they can hear or see you as you chat. A chat client is a program on your computer that allows you to connect to a chat server and start a chat session. Instant messaging (IM) is a real-time Internet communications service that notifies you when one or more people are online and then allows you to exchange messages or join a private chat room.

    Identify The Rules Of Netiquette

Netiquette, which is short for Internet etiquette, is the code of acceptable behaviors users should follow while on the Internet. Rules for e-mail, newsgroups, and chat rooms include:

• Keep messages brief and use proper grammar and spelling.
• Be careful when using sarcasm and humor.
• Be polite and avoid offensive language.
• Avoid sending flames (abusive messages) and spam (unsolicited junk mail).
• Do not use all capital letters, which is the equivalent of SHOUTING!
• Use emoticons (such as :) for smile) to express emotion.
• Use abbreviations (such as BTW for by the way) for popular phrases.
• Clearly identify a spoiler, which is a message that reveals a solution to a game or an ending to a movie or program.
• Read the FAQ (frequently asked questions) document.
• Do not assume all material is accurate or up-to-date.
• Never read someone’s private e-mail.

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Advantages and Disadvantages of Electronic Commerce

Electronic commerce or in short e-commerce, refers to business activities like selling and purchasing of products and services carried out over electronic systems like the Internet and computer networks. The history of e-commerce dates back to 1970, when for the first time, electronic data interchange (EDI) and electronic fund transfer were introduced. Since then, a rapid growth of e-commerce has pervaded almost every other aspects of business such as supply chain management, transaction processing, Internet marketing and inventory management.

Advantages and Disadvantages of Electronic Commerce

Like any conventional business, electronic commerce is also characterized by some advantages and inherent drawbacks. Let's have a look at some of these important advantages and disadvantages of electronic commerce.

Advantages of Electronic Commerce

The greatest and the most important advantage of e-commerce, is that it enables a business concern or individual to reach the global market. It caters to the demands of both the national and the international market, as your business activities are no longer restricted by geographical boundaries. With the help of electronic commerce, even small enterprises can access the global market for selling and purchasing products and services. Even time restrictions are nonexistent while conducting businesses, as e-commerce empowers one to execute business transactions 24 hours a day and even on holidays and weekends. This in turn significantly increases sales and profit.

Electronic commerce gives the customers the opportunity to look for cheaper and quality products. With the help of e-commerce, consumers can easily research on a specific product and sometimes even find out the original manufacturer to purchase a product at a much cheaper price than that charged by the wholesaler. Shopping online is usually more convenient and time saving than conventional shopping. Besides these, people also come across reviews posted by other customers, about the products purchased from a particular e-commerce site, which can help make purchasing decisions.

For business concerns, e-commerce significantly cuts down the cost associated with marketing, customer care, processing, information storage and inventory management. It reduces the time period involved with business process re-engineering, customization of products to meet the demand of particular customers, increasing productivity and customer care services. Electronic commerce reduces the burden of infrastructure to conduct businesses and thereby raises the amount of funds available for profitable investment. It also enables efficient customer care services. On the other hand, It collects and manages information related to customer behavior, which in turn helps develop and adopt an efficient marketing and promotional strategy.

Disadvantages of Electronic Commerce

Electronic commerce is also characterized by some technological and inherent limitations which has restricted the number of people using this revolutionary system. One important disadvantage of e-commerce is that the Internet has still not touched the lives of a great number of people, either due to the lack of knowledge or trust. A large number of people do not use the Internet for any kind of financial transaction. Some people simply refuse to trust the authenticity of completely impersonal business transactions, as in the case of e-commerce. Many people have reservations regarding the requirement to disclose personal and private information for security concerns. Many times, the legitimacy and authenticity of different e-commerce sites have also been questioned.

Another limitation of e-commerce is that it is not suitable for perishable commodities like food items. People prefer to shop in the conventional way than to use e-commerce for purchasing food products. So e-commerce is not suitable for such business sectors. The time period required for delivering physical products can also be quite significant in case of e-commerce. A lot of phone calls and e-mails may be required till you get your desired products. However, returning the product and getting a refund can be even more troublesome and time consuming than purchasing, in case if you are not satisfied with a particular product.

Thus, on evaluating the various pros and cons of electronic commerce, we can say that the advantages of e-commerce have the potential to outweigh the disadvantages. A proper strategy to address the technical issues and to build up customers trust in the system, can change the present scenario and help e-commerce adapt to the changing needs of the world.

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Economic Forces and Electronic Commerce

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The Role And Importance Of Commercial Bank.

The banks play very important role for the economic development of the country. The importance can be examined as under:
1. Increase in saving: The people deposit there savings into the banks and the bank pays reasonable profit on these savings.

2. Increase in investment: The money which is collected by the bank is lent to businessman and industrialist. The increase in the investment increases the level of employment.
3. Increase in employment: The banks advance loan to the investors. As a result; the industrial units are setup in different parts of the country. Hence the level of employment is increased.

4. Transfer of Money: When the people want to transfer their money from one place to another place, they get traveller cheque and the bank draft from the bank.
5. Loan to Govt.: When the govt. needs funds to complete the public works programs, the banks provide loans to it.

6. Capital formation: the process of the capital formation is completed with the financial of commercial banks. So banks increase capital formation.
7. Balanced development: when the banks provide loans to the less developed areas, the chances of progress and development are increased in the areas.
8. Saving in metals when the payments are made through currency notes and credit instruments, the precious metals are saved.
9. Conclusion: banks are back bone for the economic development of any country. A planned banking system is indispensable for economic growth and development of the country

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Role Of Commercial Banks In The Economic Development

Role Of Commercial Banks In The Economic Development Of A Country - Presentation Transcript

1. • ROLE OF COMMERCIAL BANKS IN THE ECONOMIC DEVELOPMENT OF A COUNTRY
2. Role of Commercial Banks in the Economic Development of a Country
   • Commercial banks play an important and active role in the economic development of a country.
   • If the banking system in a country is effective, efficient and disciplined it brings about a rapid growth in the various sectors of the economy.
   • The following is the significance of commercial banks in the economic development of a country.
3. Role of Commercial Banks in the Economic Development of a Country
   • 1. Banks promote capital formation
   • 2. Investment in new enterprises
   • 3. Promotion of trade and industry
   • 4. Development of agriculture
   • 5. Balanced development of different regions
   • 6. Influencing economy activity
   • 7. Implementation of Monetary policy
   • 8. Monetization of the economy
   • 9. Export promotion cells
4. Role of Commercial Banks in the Economic Development of a Country
   • 1. Banks promote capital formation:
   • Commercial banks accept deposits from individuals and businesses, these deposits are then made available to the businesses which make use of them for productive purposes in the country.
   • The banks are, therefore, not only the store houses of the country’s wealth, but also provide financial resources necessary for economic development.
5. Role of Commercial Banks in the Economic Development of a Country
   • 2. Investment in new enterprises:
   • Businessmen normally hesitate to invest their money in risky enterprises. The commercial banks generally provide short and medium term loans to entrepreneurs to invest in new enterprises and adopt new methods of production.
   • The provision of timely credit increases the productive capacity of the economy.
6. Role of Commercial Banks in the Economic Development of a Country
   • 3. Promotion of trade and industry:
   • With the growth of commercial banking, there is vast expansion in trade and industry.
   • The use of bank draft, check, bill of exchange, credit cards and letters of credit etc has revolutionized both national and international trade.
7. Role of Commercial Banks in the Economic Development of a Country
   • 4. Development of agriculture:
   • The commercial banks particularly in developing countries are now providing credit for development of agriculture and small scale industries in rural areas.
   • The provision of credit to agriculture sector has greatly helped in raising agriculture productivity and income of the farmers.
8. Role of Commercial Banks in the Economic Development of a Country
   • 5. Balanced development of different regions:
   • The commercial banks play an important role in achieving balanced development in different regions of the country.
   • They help in transferring surplus capital from developed regions to the less developed regions.
   • The traders, industrialist etc of less developed regions are able to get adequate capital for meeting their business needs.
   • This in turn increases investment, trade and production in the economy.
9. Role of Commercial Banks in the Economic Development of a Country
   • 6. Influencing economic activity:
   • The banks can also influence the economic activity of the country through its influence on
   • a. Availability of credit
   • b. The rate of interest
   • If the commercial banks are able to increase the amount of money in circulation through credit creation or by lowering the rate of interest, it directly affects economic development.
   • A low rate of interest can encourage investment.
   • The credit creation activity can raise aggregate demand which leads to more production in the economy.
10. Role of Commercial Banks in the Economic Development of a Country
    • 7. Implementation of Monetary policy:
    • The central bank of the country controls and regulates volume of credit through the active cooperation of the banking system in the country.
    • It helps in bringing price stability and promotes economic growth with in the shortest possible period of time.
11. Role of Commercial Banks in the Economic Development of a Country
    • 8. Monetization of the economy:
    • The commercial banks by opening branches in the rural and backward areas are reducing the exchange of goods through barter.
    • The use of money has greatly increased the volume of production of goods.
    • The non monetized sector (barter economy) is now being converted into monetized sector with the help of commercial banks.
12. Role of Commercial Banks in the Economic Development of a Country
    • 9. Export promotion cells:
    • In order to increase the exports of the country, the commercial banks have established export promotion cells.
    • They provide information about general trade and economic conditions both inside and outside the country to its customers.
    • The banks are therefore, making positive contribution in the process of economic development.
13. Role of Banks in 21 st century
    • The commercial banks are now not confined to local banking.
    • They are fast changing into global banking i.e, understanding the global customer, using latest information technology, competing in the open market with high technology system, changing from domestic banking to investment banking etc.
    • The commercial bank are now considered the nerve system of all economic development in the country.
14. Virtual Banking
    • What is virtual banking?
    • Providing the banking services through extensive use of information technology without direct recourse to the bank by the customer is called virtual banking.
    • The origin of virtual banking can be traced to the 1970,s with the installation of ATM’s.
    • The principal types of virtual banking services include automated teller machines (ATM’s), phone banking and most recently internet banking.
    • With the increasing use of internet banking there is greater reliance now on information technology and the decrease of physical bank branches to deliver the banking services to the customer.

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Functions of Commercial Banks

Functions of Commercial Banks

Commercial bank's function can be categorized into two types. 1. Primary or Principal Function 2. Secondary or Ancillary function 1. Primary or Principal Function: Primary or principal functions of a commercial bank are three types A. Acceptance of Deposit B. Lending C. Investment A) Acceptance of Deposit: An important function of commercial banks is to attract deposit from the public. Those people who have cash account and want their safety; they deposit that amount of banks. Commercial banks accept deposits every class and source and take responsibility to repay the deposit in the same currency whenever they are demanded by depositors. B) Lending: Another function of commercial banks is to make loans and advance out of the deposit receive in various forms. Bank Apply the accumulated public deposits to productive uses by way of loans and advances, overdraft and cash credits against approved securities. C) Investment: Now a days commercial banks are also involved in Investment. Generally investment means long term and medium term investments. 2. Secondary or Ancillary function: Secondary or Ancillary functions of Commercial Banks are two types: A. Agency Services 1) Collection and Payment of Cheques 2) Standing Instruction 3) Acting as correspondence 4) Collecting of bills- electricity, gas, WASA, telephone etc. 5) Purchase and Sales of stocks/ share-act as a banker to issue B. Miscellaneous or General Services: 1) Safe Custody- bailee 2) Lockers-trustee 3) Remittance facilities –DD, TT, MT and PO 4) Advisory services 5) Providing Credit reports 6) Opening L/C 7) Demand in ForEx/ Travers Cheque only Authorized Dealer branches 8) Complete service in Foreign Trade 9) Other Services: Debit Card, Credit Card, On-line banking SMS banking 10) Creation of Credit: a multiplier effect, Deposit creates credit and credit creates deposits – derivative deposit. Beside these activities, commercial bank may perform further tasks, all its activities are guided by its authority for the betterment of the company or for society.

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Commercial Bank

What Does Commercial Bank Mean?
A financial institution that provides services such as a accepting deposits and giving business loans.


Commercial banking activites are different than those of investment banking, which include underwriting, acting as an intermediary between an issuer of securities and the investing public, facilitating mergers and other corporate reorganizations, and also acting as a broker for institutional clients




Privately owned financial institution which (1) acceptsdemand and time deposits, (2) makes loans to individualsand organizations, and (3) provides services such asdocumentary collections, international banking, tradefinancing. Since a large proportion of a commercial bank'sdeposits is payable on demand, it prefers to make short-term loans instead of the long-term ones (which are handled by organizations such development finance companies and home mortgage companies).

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