It is the sum total of the consumption, distribution, production in a country, which measures that how an economy is.
There are three economies.
1. PLANNED ECONOMY OR COMMAND ECONOMY:-
An economy where production and the consumptions are decided by the central government .It is an economy where development capacity is less and where investment is limited. In this economy everybody have a job, but they get limited wages, here people are usually deprived of mobile phones and latest technology. They live a very simple and monotonous life; consumers do not have disposable income so that they can invest on some kind of luxury.
2. MARKET ECONOMY OR FREE ENTERPRISE:-
An economy which is free, though the government is in power but everybody is given right to enjoy his/her rights in a more free manner. Here, businesses play a key role; businesses are motivated by profits to make products that customer will buy. This economy provides a competitive front for every business to work efficiently. Here if the economy is pure it could even lead to inequality in society, this kind of pure market economy is having several drawbacks.
3. MIXED ECONOMY:-
This type of an economy is the mixture of planned and market economy. Private sectors operate in order to profit and public sectors operate for nonprofit reasons. Almost every nation today practices this economic system.
Markets main aim is to make out the maximum profit with less investment. Markets have the resources in its hands, so it depends how they make the best possible use of these resources at low cost and to achieve maximum profit and it could be only achieved with the help of technology. Technological innovations boost up the market economy and make it reach to its heights. It could hike up the economy with higher returns. Discussing on the superficial level of an economy, an economy deals with per capita income, average income, gross domestic product, etc. All these major sectors of an economy face changes in respect to a country if there is any new technological innovation. Take the example of computers when it was launched it boost up the economy and doubled it up undoubtedly. It reduced the cost of production, gave an ease to everything, made man to lead a luxurious and comfortable life, it remarkably reduced the labour. Today man is nowhere without computers. Technology is something that reduced costs and improves choice for consumer. Technology is so pivotal to the growth of a business in improving the competition and improving performance which results in boosting up profitability .Any new technology have huge and long impacts on economies. Take the example of mobile phones, when it entered the economy it hiked up the businesses. Its profitability was the major factor which was its reason to be a boon for the people. It changed the way the firms communicated; the old traditional slow way of communicating was replaced by high speed communication which was equally reliable. Promotion of goods and services through this technological innovation has made work easy. So, technology is an innovative gift which mankind pursues and will be pursuing.
In the present scenario communication plays a key role in boosting up the businesses. Today mobile phones are not for chatting with friends, family they have reached far in its implications all over the globe.
The mobile phones have made things simpler and easy going, its usage is vast, today one can do businesses from one country to another on phones, which have remarkably reduced transport cost and various other factors which earlier was a required thing with a business. Today mobile phones have created a boom with Kenya's gdp and it is increased remarkably. They have created employment; it fulfilled the basic necessities of one's life. Be it India, us or UK, everybody have an economic growth as a country.
From butcher to elite businessman everyone have it, without which they can't live, it have become a necessity. With mobile phones, landlines businesses have reduced exceptionally, people stop using them, many landlines connection were disconnected, landlines businesses failed. Everyone require something compact, portable and cheaper to meet their demands in a better way. According to 2006 survey, subscription to fixed telephone lines continued their decline, down 1.5% to 33.6 million in 2006.The increasing popularity of mobile phones and the downfall of landline phones, shows that mobile phones obviously have an upper hand to landlines, when it comes to having lower risks in the market and earning huge profits. (Taking Vodafone as a case).
This shows that how market changes with new technological innovations and how it affects the economy and what impact does it have on old technology.
1. THE TIMES 100. (2009). Vodafone. Available: www.thetimes100.co.uk. Last accessed 12 Dec 2009.
2. Stanley St Labs. (2009). Type of Economic System. Available: http://www.economywatch.com/world_economy/world-economic-indicators/type-of-economic-system.html. Last accessed 12 Dec 2009.
3. DORON OTTER. (2008). THE TECHNOLOGICAL ENVIRONMENT. In: PAUL WETHERLY AND DORON OTTER THE BUSINESS ENVIRONMENT. 2nd ed. NEW YORK: OXFORD UNIVERSITY PRESS. P63-85.