Difference between traditional and new economic environmental systems

Difference between traditional economy and new economic environmental system:

After the 1990s, the U.S. economy experienced a sustained, high rate of growth that was rare in the post-World War II period, and similar phenomena were observed in Europe and other economies around the world, which were called the new economic phenomenon. The essence of the new economy is information technology and globalization, and its core is high-tech innovation and a series of other areas of innovation driven by it. The reality of the new economy is the integration of the global economy.

There are three main characteristics of the new economy. First, companies are increasingly focused on shifting value from tangible to intangible assets. Second, value is shifting from companies that provide products to companies that not only provide products, but also provide low-priced and highly personalized products, or companies that can provide solutions to problems.

Finally, companies can easily reduce costs through data management, which is another important feature of the new economy, and network marketing has become an important element of the new economy.

The traditional economy based on manufacturing is characterized by standardization, scale, pattern, efficiency and hierarchy, while the new economy is based on information technology and pursues differentiation, personalization, networking and speed. The new economy requires companies to have standards of customer satisfaction and customer retention and, at the same time, to be able to fulfill the promises they make to their customers.

The traditional economy is a term used in economics, also known as the natural economy, as opposed to the commodity economy, and is mostly found in rural and agrarian societies, where social customs and practices are used to solve three basic economic problems (what to produce, how to produce, and to whom to produce). The other three economic systems are the planned economy, the market economy, and the mixed economy.

New economy refers to new economic forms. The difference of the dominant industrial form of the society determines the difference of the economic form of the society. In different historical periods, the new economy has different connotations. The current new economy refers to the intelligent economic form in which innovative knowledge dominates knowledge and creative industries become leading industries.