CHAPTER ONE

DIGITAL DIVIDE

1.3.1.4. Knowledge based
1.3.1.5. Globalization of business

1.3.1.1. Digital

The activities, services of the new economy are digitalized. That means the economy is based on digital technology. The production processes are control and coordinated by digital objects- computers, robots etc. The economic activities of the digital economy involves the production of digital materials such as computers, software
packages, video equipment, telephones, radio, television to the use of fax machines, telephone and the internet.

1.3.1.2. Time, space and distance is irrelevant

The new economy is based on digital technology such as the computer, internet, satellite etc. With this technology you can access products and services from different parts of the world, any time anywhere. You can stay in Jalingo, Kano, Nigeria and buy goods from the US. The goods will be delivered to you in Kano, without moving an inch. This has reduced cost for travels, risks in business and other logistics.

1.3.1.3. Technology driven

The goods and services of the new economy are technology driven. That is computers, robots are the tools used to design, manage, and produce goods and services. This has led to increased efficiency of production, reduced cost of production and prices of goods.

1.3.1.4. Knowledge based

The activities of the new economy are knowledge based. Designs of products and services are based on inferences derived from research studies.

1.3.1.5. Globalization of business

One of the most important features of the new economy is globalization of business. Individuals, companies can now use the digital technology to advertise market, sell, etc their products on the internet. Barriers to trade have been collapsed in the digital economy. That means companies, or even individuals are not restricted to where, when and how they can sell products and services.

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