Digital transformation of the global economy: challenges and opportunities

Abstract

The world is going through a revolution, the emergence of digital and its impact on our planet. By Christine Moorman Researchers examine the challenges and opportunities of how to digitize a tradition-bound, offline industry. The research highlights key factors propelling this transition; ranging from technological and legal advances to societal impacts. Other subjects covered in the study include potential cyber threats and data privacy risks as well as what digitalization means for different industries, from manufacturing to services and finance. These findings suggest that while digital transformation promises significant opportunities for innovation and economic growth, it also requires comprehensive policy approaches to reduce associated risks and ensure inclusive development. The aim of this article is to investigate the challenges and opportunities posed by the transition in global economy from analogical towards digital. The global economy is undergoing a radical transformation thanks to digital technologies. These tectonic shifts kindle an array of opportunities and challenges that we discuss in this article. Highlighting key factors behind this transformation-technology, legal frameworks and socioeconomic considerations-the study takes a deep dive into how blockchain can allow farmers to capture premium prices while ensuring traceability of genuine produce. The research looks at the potential dangers linked to cybersecurity and privacy, while it also studies how digitilization impacts sectors including manufacturing, services and finance. The findings show that while digital transformation provides considerable opportunities for innovation and economic growth, it also requires comprehensive strategies to mitigate associated risks and ensure inclusive development. This article is written as to observe the titled paradigm shift of global economy with Digitalisation, and changes it brings about in form of opportunities & challenges. The findings show that digital transformation is a two-edged sword: it provides significant opportunities for economic growth, innovation, and the creation of new business models like digital platforms and the gig economy. However, it presents significant challenges, particularly in terms of cybersecurity and data privacy. The increasing frequency and sophistication of cyberattacks pose serious threats to businesses and governments, while concerns over data privacy necessitate the development of strong regulatory frameworks.

Keywords: Digital Transformation, Global Economy, International Economy, Digital Economy, Technological Advancements, Cybersecurity, Economic Growth, Innovation Fig.: 1, tabl.: 1, bibl.: 17 JEL Classification: O31, O33, O47, F01, F02, L86, D80

JEL Classification: O31, O33, O47, F01, F02, L86, D80