Question

What are the main characteristics of the old and new economy?

Answer 1

Old economy is a term used to describe the blue-chip industry that experienced tremendous growth during the early part of the last century as industrialization spread worldwide. These sectors do not rely heavily on technology or advancement in technology, but they use processes that have been around for hundreds of years. Even with the emergence of the modern economy, older businesses are still experiencing growth, but at a pace that is diminishing.

In comparison to the modern economy, the old economy depends on outdated ways of doing business rather than using emerging cutting-edge technologies. The current economic structure dates back to the Industrial Revolution, which centers around producing goods as opposed to knowledge sharing. Common goods are valued according to measurable factors such as operating expenses and product scarcity.

The old economy depends, as compared to the modern economy, on outdated ways of doing business rather than using emerging cutting-edge technologies. The modern economic system dates back to the Industrial Revolution, and relies on manufacturing commodities as opposed to the exchange of ideas. Popular products are priced on tangible criteria such as running costs and quality of the commodity.