Final answer:
The Internet aids international trade in the services sector by enabling the export of informational services. Technological advancements and international agreements have reduced costs and barriers, fostering a global marketplace. The overall impact is generally positive, offering advantages such as lower prices and increased variety for consumers.
Step-by-step explanation:
The Internet facilitates international trade in the service sector primarily by providing the means to export some types of services to foreign markets. Services such as computer software, financial advice, travel planning, and design blueprints have become more easily exportable due to advancements in telecommunications. These services can be delivered globally through telephone and computer networks at reducing costs, thanks to technological innovations and international agreements that encourage trade.
Moreover, international trade allows even small economies to take full advantage of economies of scale, benefit from competition, and enjoy a variety of products offered by multiple producers. While competition can reduce profits for some businesses and may result in loss of jobs, on balance, international trade tends to offer greater benefits such as better or less expensive products for consumers, increased profits for competitive businesses, and higher income for their employees.
Globalization, fueled by international trade and advancements in transportation and telecommunications, like the Internet, has led to increased economic and cultural interdependence. As a result, the last half-century has witnessed a significant decrease in trade barriers like tariffs and import quotas, and the rise of technology-based trade, collectively enhancing the impulse of international trade.