Old economy is the economy system mainly based on subsistence farming. It involves trade by barter. It is associated with the under-developed or developing countries of the world.
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FEATURES OF OLD ECONOMY
- Its processes were time consuming.
- It required a lot of labour.
- It was mechanically driven.
- Scarcity of labour and low manpower development.
- Intense labour based production.
- It was constrained by space, time and distance
- List THREE factors that affect digital divide.
- Explain economic factor.
The new economy was an evolution of developed countries from an industrialized/manufacturing based wealth creation economy to the service sector based economy. As a new economy is emerging , the old economy is fading out gradually.
FEATURES OF NEW ECONOMY
- It is a digital economy.
- It is not constrained by time, space and distance.
- It is technologically driven.
- It is a global economy.
BENEFITS OF NEW ECONOMY
- Globalization: new economy has turned the whole world into global village.
- Electronic commerce: E-commerce is the act of buying and selling over the internet facilitated by immediate payment via credit cards.
- Digital Economy: the new economy involves the use of information and communication technology (ICT) with the use of computers and telecommunication equipment for information processing.
- Job opportunities: New economy emphasizes more on what you know, what you have to offer and what you are prepared to do.
COMPARISON OF THE OLD ECONOMY AND NEW ECONOMY
|Old Economy||New Economy|
||Cost is cheaper.|
||Automated processing era.|
||It is technology driven.|
||It is fast in processing.|
||It requires a few labour force.|
- Differentiate between New economy and Old economy
- List and explain TWO features of new economy.
- How is new economy driven by technology?
- Explain the term Globalization.
- Which of the economy is mechanically driven? A. new economy B. digital economy C. old economy D. none
- Old economy is constrained by time because of………A. lack of enough manpower B. time is too short C. it is mechanically driven D. none
- Which of the options describe new economy? A. industrial Age B. machine age. C. technology driven age D. electrical driven age
- Which of the economy is driven by technology? A. old economy B. ancient economy C. new economy D. A and B.
- Which of the economy uses more of manpower? A. old economy B. ancient economy C. new economy D. A and B.
- Differentiate between old economy and new economy.
- State two features of both economy.