Applying the economic theories in the Market’s Reader to the New Economy :: Economics

Applying the economic theories in the Market’s Reader to the New Economy In this part of the question, I will describe the old and new Economy, after that I will point out the main characters of New Economy and what is different between NEW and Old Economy. later than, I will discuss the demand of knowledge, ideas, innovation, and individual creative destruction, change in market and competitive as the main resource needed to make economic prosperity. I will discuss Innovation reduce costs and improve product quality and how advances technology achieve the cost reduction and reserve the economic scale in good level. Finally I will apply the Economic theories in market reader. From around 1938 to 1974, the economy was built on a manufacturing base geared in the direction of standardized production (It was manual labor). It was organized into stable, hierarchical and generally high-handed organizations. These organizations achieved a competitive edge in the market by making standardized products faster and more economically. They focused on incremental cost reductions and a national marketplace. In addition, that how this organization success and achieved there ogles in most courtiers, for example textile and steel industry. That kind of economic start to collapse during the mid-70s and the early 90s. The crisis included both textiles and steel industry, in a period of changeover from the old economic to the new economic ,a lot of countries loss their competitive frame because others were changing the production process more faster and cheaper. The cheap labor which had brought industries to the South Asia was being very cheap. At the same time, the social demand for the individual has change, workers become looking for a higher standard of living, new cars, washing machines, clothes and bigger houses, which effect the economy. On the other hand, the new economy is rising as a demand of knowledge and idea-based economy. The new economy, which was making success and prosperity used the new technology to produces high quality, low price production, also the new ideas and innovation that apply to all sectors of the economy which enhance the whole economy. For example, 80% of the jobs in US today do not depend on making things, process things, or generate information. In 50s, 60% of the firm's in US could use unskilled labor now a day only around 15 per sent of jobs can use unskilled labor. Robert M. Howe author said ‘technology is in the hands of society at large’. the most important resource in the new economy is â€Å"human capital† – a resource that all nations possess. Development of productive capacity and its measurement is one of the challenges that Applying the economic theories in the Market’s Reader to the New Economy :: Economics Applying the economic theories in the Market’s Reader to the New Economy In this part of the question, I will describe the old and new Economy, after that I will point out the main characters of New Economy and what is different between NEW and Old Economy. later than, I will discuss the demand of knowledge, ideas, innovation, and individual creative destruction, change in market and competitive as the main resource needed to make economic prosperity. I will discuss Innovation reduce costs and improve product quality and how advances technology achieve the cost reduction and reserve the economic scale in good level. Finally I will apply the Economic theories in market reader. From around 1938 to 1974, the economy was built on a manufacturing base geared in the direction of standardized production (It was manual labor). It was organized into stable, hierarchical and generally high-handed organizations. These organizations achieved a competitive edge in the market by making standardized products faster and more economically. They focused on incremental cost reductions and a national marketplace. In addition, that how this organization success and achieved there ogles in most courtiers, for example textile and steel industry. That kind of economic start to collapse during the mid-70s and the early 90s. The crisis included both textiles and steel industry, in a period of changeover from the old economic to the new economic ,a lot of countries loss their competitive frame because others were changing the production process more faster and cheaper. The cheap labor which had brought industries to the South Asia was being very cheap. At the same time, the social demand for the individual has change, workers become looking for a higher standard of living, new cars, washing machines, clothes and bigger houses, which effect the economy. On the other hand, the new economy is rising as a demand of knowledge and idea-based economy. The new economy, which was making success and prosperity used the new technology to produces high quality, low price production, also the new ideas and innovation that apply to all sectors of the economy which enhance the whole economy. For example, 80% of the jobs in US today do not depend on making things, process things, or generate information. In 50s, 60% of the firm's in US could use unskilled labor now a day only around 15 per sent of jobs can use unskilled labor. Robert M. Howe author said ‘technology is in the hands of society at large’. the most important resource in the new economy is â€Å"human capital† – a resource that all nations possess. Development of productive capacity and its measurement is one of the challenges that