Old Economy and New Economy – JSS3 Computer Studies Lesson Note (First Term)

Old economy and new economy

Old economy

Meaning of old economy

Old economy: This is a term used to describe the business or economic system of the pre-technological period.

Features of the old economy 

•             It was time consuming
•             It was labour based
•             It was mechanical
•             It was constrained by distance
•             It was constrained by space
•             It was constrained by time 

 Limitation of old economy

•             There was minimal use of technology in the old economy
•             There was a distance barrier: The old economy depended on physical contact, as a result, the business transactions would not take place if there was a distance barrier.
•             Space: The old economy depended on physical space such as marketplaces and offices before business transactions could take place
•           Time: In the old economy, time determined when transactions would take place. Nobody would carry out business when the market is closed.

 New economy

Meaning of new economy 

The new economy is an evolution of developed countries from an industrial–based wealth-producing economy into a service sector, an asset-based economy brought about by globalization, digital technology, and currency manipulation by governments.

Features of new economy

The following are the features of the new economy

•             It is digital 
•             No limitation due to time, space, and distance
•             It involves continuous research
•             It is technology driven
•             It is knowledge-based

 Benefits of the new economy

The benefits of the new economy are as follows:

•             It requires low capital to start and operate a business
•             Time efficiency
•             It creates new jobs
•             It leads to globalization 
•             It creates employment
•             It widens knowledge

 Difference between old and new economy