BOH4M1 – Assignment
New vs Old Economy
NEW VS OLD ECONOMY
Define the following:
Old Economy: | an economy based on agriculture and manufacturing as opposed to high technology; also, a former economic system or state |

New Economy:
New industries, such as biotechnology or the Internet, that are characterized by cutting-edge technology and high growth.
Fill in the following chart:
CONTRASTS
OLD ECONOMY | NEW ECONOMY | Requires control | Requires collaboration | Value is measurable | Value is emergent | Predictive | Experimental | Proximity is important | Location less significant | Assembly line focused | Community Focused | Clear boundaries and definitions | Shifting borders and consensus meaning | labour-intensive economy involving manufacturing and the movement of physical commodities | the "virtual" economy of computers and electronic commerce | creates value in a product through a simple formula: The object’s value is the sum of its obvious parts | Produces additional value by a complex interaction of the obvious parts with intangibles, like design, engineering, brand and cachet. |
Pick any two points that you put in the chart and explain in your own words what it means. 1. The "virtual" economy of computers and electronic commerce (new economy). Vs labour-intensive economy involving manufacturing and the movement of physical commodities (old economy). Basically this point is explaining the change in the economy from old to new. In the old economy labour was needed involving manufacturers because they needed people to move the physical product or to help make and produce, or to design the products. In the new economy however there are now machines that take the place of people so there is not a large demand for labour. Also we know use the minds of a computer of software to create a product instead of using our own minds, basically the introduction of the virtual world. 2. (old economy) Predictive, Vs Experimental (new economy).
What these two points mean is that in the old economy the product that was going to be created followed an exact script and everything was planned already before the product began to be made. In the new economy an idea of a product is thrown around and the product is made by continuation of ideas. There is no set plan on how the product is going to be created although planning is still a necessity it is just a more experimental process.

15 marks – knowledge and understanding.