Economic transformation
Source: Shangpin China |
Type: website encyclopedia |
Time: 2015-09-17
The economy in the network era is changing from content to form. There are many new terms to describe the new features of this economy, such as the Information Age, Knowledge Economy, New Economy, Weightless World, E-Commerce Website construction wait. There even appeared the seemingly strange Click Here Economy, which means that more and more economic activities take place by clicking the mouse on the Internet. In the office or at home, connect to the Internet, according to the prompts in the computer window screen, move the cursor and click the mouse to complete the business. In a word, the network changes the way of economic growth.
The network promotes the further commercialization of knowledge. While narrowing the spatial differences, computer networks have expanded the market for knowledge consumption. Without the network, knowledge can only be limited to special fields, and only exists in individual thoughts or organizations. Knowledge is implicit. Knowledge consumers are not large-scale, the cost of knowledge innovation is high, and the function of knowledge is limited. The progress of computer and communication technology has changed this state. Knowledge is encoded, sorted, and transmitted at the speed of light everywhere. Information technology enables it to be transformed into commodities that can be sold in the market and consumed on a large scale. With the development of the Internet, more and more people can acquire and consume knowledge more cheaply through computer networks.
The network has broken the traditional economic margin. The marketization of knowledge and the networking of its transmission have constructed a new way of knowledge derivation. Traditional innovation often starts from discovery and develops along a fixed linear process consisting of a series of stages. With the networked transmission and interactive characteristics of knowledge, innovation will, to a large extent, result from the feedback loop and continuous interaction between science, engineering, product development, production and marketing. Innovation will be interactive and take place in many places. This leads to the more users of knowledge products, the lower the cost of the products, and the greater the benefits. Unlike the cost reduction brought by economies of scale, there is no marginal cost in this economy. Once the investment in a product brings benefits, the greater the investment, the lower the cost. Where, once someone gains an advantage, they will further gain an advantage.
The network promotes the development of productivity and improves economic efficiency. The rise and vigorous development of computer networks have changed the traditional way of information collection, transmission and processing, and put forward higher requirements for the labor skills and work efficiency of workers. According to statistics, the total investment in the world's information industry in 1997 was about 610 billion dollars. High investment has brought about high output. For example, in 1997, 1/3 of the growth rate of the US GDP came from the information industry, which is characterized by networking and digitalization. The network broadens the way to improve economic efficiency. Using modern computer networks to effectively communicate information in all aspects, especially information outside the system, will help enterprises not only rely on scale operation to improve economic efficiency, but also can improve economic efficiency through the expansion of business scope, and seek greater economic efficiency through timely cooperation or collaboration with relevant enterprises to varying degrees.
The network promotes the improvement of the market economy system. A widely publicized view of Bill Gates is that "computer network will create frictionless capitalism", because it provides opportunities for the effective operation of markets and enterprises. The information superhighway will eventually become an all inclusive intermediary market. Any computer connected to the network can obtain information about sellers and their products and services. This is an ultimate market, which will bring human market transactions into a new world. Spending a small amount of transaction costs here can obtain a large amount of market information, which has always been an ideal model for economists. It will enable product producers to see more effectively what consumers really need than ever before, and also enable future consumers to purchase products more effectively. According to the classical hypothesis of economic theory, the network enables us to enjoy sufficient information, which is a condition for the market to achieve full competition. According to Adam Smith's market concept, if every buyer knows the price offered by every seller, and every seller also knows the price that every buyer is willing to pay, then everyone in the market can make a decision with sufficient information: at the same time, social resources will be effectively allocated. From this, people can enter a new world with no friction and low management costs. The market information is rich, transaction costs are reduced, and consumers become supreme. With the development of network application and e-commerce, the market is tending to a complete ideal state. For the application of the network, everyone shares a platform, and the incompleteness of information is almost solved technically. With the help of LAN, information communication and cooperation among colleagues can be formed within economic entities. With the help of WAN, economic agents can exchange information with the outside world, and can obtain enough information for decision-making at a very low cost. Sufficient case information of market punishment for offenders is also conducive to market players to comply with effective market rules. In this way, economic entities almost only rely on market prices when making decisions. This decision can also be quickly responded to, for example, online direct sales. As long as the manufacturer accepts the order from the end user, it means that it accepts the user's price and carries out production. Network application can reduce market transaction costs and market friction, thus greatly improving the ideal market state.
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