essentials of business

Differences between types of economies

There are three main types of economies in the world according to the types of business they do

Agriculture based economy - This is the oldest form of economies in the world . The economy by its nature has small firms and has a limited economy of scale . The economy is usually prevalent in third world countries like Vietnam

Industrial economy - An industrial economy is stronger than an agricultural one , due to the larger size of firms and higher society will tend to have large firms , as industry

has a substantial economy of scale . Mnay of the countries started their developent stages from this type of economy

Service Economy - A service-based economy has its size dependent on the types of sevices it provides .This means not all industrial firms will be huge in size , and yet they cannot be considered as an economically weaker section (Plexico n .d

Examples of all of these can be seen in the world , but the more advanced countries of the world are moving or have already moved from the first through the second to the third . The US was the first country to become predominantly a Service economy (Plexico n .d

Impact of Computers on Business

Computer science is at a stage at which it can do more for the economy , more for the way business is done (Gates 2004

Many people believe that the single most important change in the society in recent times has been brought about by the introduction of computers The three types of economies which were described in the earlier section have all been significantly affected by the invention of computers Initially Business used computers for only keeping track of accounts money , or items that they need , but things changes at a lightning pace

It can be said that the speed , accuracy , the ability to do repetitive tasks - are the backbone of today 's research , manufacturing and production units . These characteristics also brought about the advent of the present Age of Information . The development of the World Wide Web .is a major breakthrough in the advancement of communication (Ayers 2007 . The information age brought about the concept of global markets to the industrial and agriculture section . While the prior age concept of `trade ' sounds pretty close , the difference is in the nature of open-markets , which are possible only because consumers know what is there for sale practically everywhere in the world . While for service sector too the open markets mean the wider scope for selling , the services themselves can be performed at much lower rates in different parts of the world . The open markets have in turn brought up the standard of product and service quality , as now the consumers have many options available for their purchases

There are newer ways of buying and selling available to consumers , like the e-businesses , where one can practically shop or sell without leaving his home . In fact many economists believe that due to the advent of computers , the business...