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OLD ECONOMY

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.

 

FEATURES OF OLD ECONOMY

  1. Its processes were time consuming.
  2. It required a lot of labour.
  3. It was mechanically driven.
  4. Scarcity of labour and low manpower development.
  5. Intense labour based production.
  6. It was constrained by space, time and distance

 

EVALUATION

  1. List THREE factors that affect digital divide.
  2. Explain economic factor.

 

NEW ECONOMY

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

  1. It is a digital economy.
  2. It is not constrained by time, space and distance.
  3. It is technologically driven.
  4. It is a global economy.
See also  INFORMATION AND COMMUNICATION TECHNOLOGY

 

BENEFITS OF NEW ECONOMY

  1. Globalization: new economy has turned the whole world into global village.
  2. Electronic commerce: E-commerce is the act of buying and selling over the internet facilitated by immediate payment via credit cards.
  3. 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.
  4. 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
  1. Cost of business was high.
Cost is cheaper.
  1. It was a manual processing era.
Automated processing era.
  1. It was mechanically driven.
It is technology driven.
  1. The processing speed was slow.
It is fast in processing.
  1. It required a lot of labour.
It requires a few labour force.

 

GENERAL EVALUATION

  1. Differentiate between New economy and Old economy
  2. List and explain TWO features of new economy.
  3. How is new economy driven by technology?
  4. Explain the term Globalization.
See also  ICT AND SOCIETY

 

WEEKEND ASSIGNMENT

  1. Which of the economy is mechanically driven? A. new economy B. digital economy C. old economy D. none
  2. 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
  3. Which of the options describe new economy? A. industrial Age B. machine age. C. technology driven age D. electrical driven age
  4. Which of the economy is driven by technology? A. old economy B. ancient economy C. new economy D. A and B.
  5. Which of the economy uses more of manpower? A. old economy B. ancient economy C. new economy D. A and B.

 

THEORY

  1. Differentiate between old economy and new economy.
  2. State two features of both economy.

 

See also:

DIGITAL DIVIDE

USES OF SEARCH ENGINE

INTERNET

Computer Users

CARING FOR COMPUTER USERS

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