We live in a digital world. Many of our transactions, purchases and interactions with other people are conducted through the Internet and devices connected to telecommunications networks. This has given birth to what is called the new economy or the digital economy.
The size of the digital economy is difficult to measure, but some estimate it at around 10% of a country’s income, value- added and employment. Many of us cannot go anywhere without carrying our smartphone. So it is not surprising that the share prices of the largest Internet firms (also called GAFAs) have significantly outperformed the Dow Jones industrial average. These firms are now amongst the largest in the world.
