Business, Legal & Accounting Glossary
The New Economy is the term used to describe the U.S. economy since the 1990’s.
New economy is a term that encompasses high technology industries and its ancillaries are believed to accelerate the growth of a country’s economy. The pillars of the new economy include the computer industry and the Internet. The service sector plays a pivotal role.
The idea of a ‘new economy’ took precedence over other economic theories in the late 1990s and in the early years of the new millennium. The bursting of the tech-bubble has brought to the fore many weaknesses of the new economy. Industries like biotechnology and the Internet make up its basic structural framework.
A dot-com company is a company that utilizes the world wide web as one of the key drivers of its business. Dotcom companies enjoyed an unprecedented boom in the latter part of the 20th century. Substantial investments were made in this sector. The prices of stocks rose abnormally high. Dotcom stocks suffered a debilitating fall when a recession occurred in the year 2001. Dotcom industry has become more efficient and profitable since then.
Click and mortar is a type of business model that admits both offline and online business operations. The offline form takes the shape of a physical store. Online business operation is represented by a website. A click and mortar business can offer its clients the dual advantage of the convenience of online commercial operations as well as the comfort of traditional face to face business.
Silicon Valley is a sobriquet for a physical land area in northern California, The United States of America. More specifically, the area around San Jose is popularly known as Silicon Valley. This moniker is due to the presence of an unusually large number of Internet and computer firms in the region.
Tech bubble refers to an abnormal rise in the price of technology stocks due to increased speculation. The phenomena can be limited to a particular industry or to an entire industrial sector. The quantum of rise depends upon the intensity of investor demand. A bubble may either deflate slowly or suffer a quick crash. Sales pressure then forces the share prices to its true, real levels.
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This glossary post was last updated: 6th August, 2021 | 0 Views.