1.2.2. LIMITATIONS OF THE OLD ECONOMY
Some of the limitations of the old economy are:-
1.2.2.1. Time consuming
1.2.2.2. Constrained by time, space and distance
1.2.2.1. Time consuming
The production of goods and services is managed by animal power and other human power/efforts. This makes the operation of the factories or industries of the old economy tedious and time consuming.
1.2.2.2. Constrained by time, space and distance
The distribution of the goods and services of the old economy to consumers is affected by time, space and distance. This is because most of the goods are produced in distanced parts of the world. And they are heavy goods-cars, Lorries, building materials etc. Such heavy goods need to be transported via water ways, railways etc to distanced parts of the world. The transporting systems were slow and take several months before goods reach their destinations.
1.3. WHAT IS NEW ECONOMY?
The concept of new economy was coined in the late 1990s. The New Economy is the current economy, which is called the digital economy. It is called digital economy because the economy is driven by digital equipment's, digital knowledge and skills. Countries that have Digital economy are the United States, Europe, Russia, Latin America and some Asian countries, etc.
1.3.1 FEATURES OF NEW ECONOMY
Some of the basic features of the new economy are:
1.3.1.1. Digital
1.3.1.2. Time, space and distance is irrelevant
1.3.1.3. Technology driven