The New Economy

When we look at different periods in human history, advanced technology as well as novel management techniques have not only brought increased of productivity but have also brought economic revolution or the emergence of “a new economy” which is also called as “Knowledge Economy”. For leading countries in world economy, the balance between knowledge and resources inclined so much that knowledge probably became the most important factor to determine the living standard, more than land, tools or labor. Now a days the most developed economies are based on knowledge” “The New Economy” is defined as the result of transition from a capital intensive economy to a Service based economy often called “Knowledge Economy”, “E-economy” or “Digital Economy” (Udrea 2007). In this essay, in the coming paragraphs, we will look at reasons why new approaches are needed to overcome these long–?lasting economic problems and discuss multiple effective techniques that are used by possibly effective strategies or techniques that businesses or countries can use to help solve these long-?lasting economic problems. We will also discuss how these strategies could be very much beneficial to those who implement the same (Dilling-Hansen, Madsen & Smith 2002). We will then compare and contrast how different countries have responded to the global financial crisis during the last year or two. In the example of United States of America, we present a successful resolution, while in the example of Romania, we demonstrate a differentiated unsuccessful response (Virginia 2013).