New Economy

Wilfred Corrigan, an executive within the semiconductor industry, notes that a principal difference between the Old Economy as well as the New Economy may be the main commodity which powers the two. The Old Economy was heavily reliant on oil, based on Corrigan, whilst the New Economy is heavily reliant on silicon. Oil prices have elevated over the past 30 years, driving inflation and limiting productivity growth during the Old Economy, but silicon prices have decreased over the exact same period, supporting low inflation and high levels of productivity growth (Kehoe, 2000, p. 20). For many analysts, "New Economy" refers for the extension of electronic commerce and electronic business (ecommerce and ebusiness, respectively) that are in accordance with with the Internet and related technologies for conducting transactions.

These transactions include not only retail transactions that might take in place at amazon.com between a business and an end buyer (business-to-consumer), but also business-to-business transactions involving purchasing, inventory control and accounting. In this New Economy, physical facilities and the concentration of employees in specific departments (such as purchasing) may perhaps be reduced as computers and specialized software automate functions to levels previously unimagined. Absolutely the skills and employment duties of numerous employees in Old Economy organizations will transform as the New Economy becomes mor There remain, however, some different differences among the Old Economy and New Economy, just like the role of unions.

Logistics workers, for example, have a tendency to be very unionized, but unions have had more dilemma in organizing between the hightechnology workers who build and aid the Internet. Difficulties such as overtime pay for white collar workers, employee rewards for contractors and workplace training opportunities are becoming handled by non-union groups, whilst some unions are eyeing these as opportunities for organizing traditionally nonunion employee classifications (engineers and programmers, for example) (Harbert, 2000, p. 42). Many international organization partners are searching being part with the World-wide-web and e-commerce in a timely manner. Inside 5 years, several analysts expect that there will probably be small difference in between European levels of e-commerce and those people in the United States.

Latin The united states and Africa are possibly to lag behind due to the lack of telecommunications infrastructure in these locations, and most analysts do not expect wireless to provide a viable selection to land line World-wide-web assistance at the level required by corporation for some many years (Mugan, 1999, p. 14).

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