Task 1 - Long reading

Read the following text about the phenomenon of the "sharing economy" and answer the 15 questions.

The Rise of the Sharing Economy

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The sharing economy, also known as collaborative consumption, is a rapidly growing economic model built on the principle of sharing access to goods, services, and skills, rather than owning them outright. Driven by advancements in technology and a shift in consumer values, this model facilitates peer-to-peer exchanges, often through online platforms. Examples include ride-sharing services like Uber, short-term accommodation rentals like Airbnb, and even platforms for lending tools or sharing workspaces. This trend reflects a move away from traditional ownership towards a more access-based consumption.

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One of the primary drivers behind the sharing economy's popularity is its economic efficiency. For providers, it allows them to monetize underutilized assets, such as a spare room or a car that sits idle for most of the day. For consumers, it often provides more affordable options compared to traditional services or purchasing new items. This can be particularly appealing in urban areas where the cost of living is high or for individuals who only need access to a resource for a short period, making it a cost-effective alternative.

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Beyond financial benefits, the sharing economy often fosters a sense of community and trust. Many platforms build user ratings and review systems that encourage respectful interactions and accountability among participants. This peer-to-peer trust can lead to new social connections and a feeling of belonging. Furthermore, by sharing resources, individuals contribute to a more sustainable lifestyle, reducing the overall demand for new products and minimizing waste, which aligns with growing environmental consciousness.

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Despite its rapid growth and numerous benefits, the sharing economy faces significant regulatory challenges. Traditional industries often view these new models as unfair competition, leading to legal battles over licensing, taxation, and safety standards. Concerns also arise regarding consumer protection, worker rights (as many providers are considered independent contractors rather than employees), and insurance liabilities. Governments are struggling to adapt existing laws to fit these innovative business models.

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The future of the sharing economy is poised for continued expansion and evolution. As technology advances, new forms of sharing are likely to emerge, potentially extending to less tangible assets like skills or even time. However, addressing the regulatory hurdles and ensuring fair practices will be crucial for its long-term success. The balance between innovation and regulation will determine how widely and ethically this collaborative model can integrate into the global economy, potentially reshaping our relationship with consumption and ownership.