Well, if you haven’t realized it by now, and yes, we are living and doing business in the New Economy. The basic idea behind this economy is that computer and Internet technology are fundamentally changing the way we are doing business.
Let us contrast the “old” with the “new”. Old economy differs from new economy in that it relies on traditional methods of doing business. On the other hand utilizes the new economy leveraging of new cutting-edge technology. This traditional economic system dates back to the Industrial Revolution and revolves around producing goods as opposed to the exchange of information (James Chen, Investopedia)
What is this New Economy?
The term “new economy” refers to the shift in the structure and nature of the global economy that has occurred as a result of the widespread adoption of digital technologies and the internet. Indeed, the new economy is characterized by the rise of digital platforms, the sharing economy, and the growth of e-commerce. Also, with the increasing importance of knowledge and information-based industries.
The new economy is based on the idea that the traditional industrial economy, which relied heavily on physical infrastructure, is being replaced by a more dynamic, innovative, and globally interconnected system. This has resulted in significant changes in the way businesses operate, as well as in the nature of work and employment.
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