Unit 2

Text A　Information Economy

1.What Is the Information Economy

An information economy is where the productivity and competitiveness of units or agents in the economy (be they firms, regions or nations) depend mainly on their capacity to generate, process, and apply efficiently knowledge-based information. It is also described as an economy where information is both the currency and the product.

While we have always relied on information exchange to do our jobs and run our lives, the information economy is different in that it can collect more relevant information at the appropriate time.Consequently, production in the information economy can be fine tuned in ways heretofore undreamed of. What makes information plentiful in this economy is the pervasive use of information and communications technology.

2.What Are the Main Features of the Information Economy

The information economy is global. A historically new reality, the global economy has the capacity to work as a unit in real time on a planetary scale. Corporations and firms now have a worldwide base for skilled labor to tap. Capital flows freely between countries, and countries can utilize this capital in real time.

However, some critics claim that a true global economy has yet to be achieved. Stephen Cohen observes that the mobility of labor is undermined by people’s xenophobia and stricter immigration laws.Multinational corporations still maintain their assets and strategic command centers in their home nations, and capital is still limited by banking and finance laws.

Castells, however, argues that even if globalization has not yet been fully realized, it will only be a matter of time before this happens. Globalization will be affected by government regulations and policies, which will affect international boundaries and the structure of the global economy.

A second characteristic of the information economy is that it is highly productive. William Nordhaus of the US National Bureau of Economic Research states that:

Productivity growth in the new economy sectors has made a significant contribution to economy-wide productivity growth. In the business sector, labor- productivity growth excluding the new economy sectors was 2.24 percent per year as compared to 3.19 percent per year including the new economy. Of the 1.82 percentage point increase in labor-productivity growth in the last three years relative to the earlier period, 0.65 percentage point was due to the new economy sectors. The contribution of the new economy was slightly larger for well-measured output because that sector is smaller than the business economy.

Some critics argue that there is no relationship between profitability and investment in ICT. Castells looks into the history of productivity growth in advanced market economies and observes a downward trend of productivity growth starting roughly around the time that the information technology revolution was taking shape in the early 1970s. According to him, this decline was particularly marked in all countries for serviced activities, where new information-processing devices could be thought to have increased productivity. However, manufacturing productivity presents a different picture. Manufacturing productivity in the US and Japan increased dramatically in 1988—1989 by an annual average of 3% and 4.1% respectively, and productivity increased at a faster pace than during the 1990s. Castells concludes that economic statistics do not adequately capture the movements of the new information economy,precisely because of the broad scope of transformation under the impact of information technology and related organizational change. There may be a diffusion from information technology, manufacturing,telecommunications, and financial services into manufacturing services at large, and then into business services.

A third characteristic of the information economy is the change in the manner of obtaining profits.Robert Reich observes that profits in the old economy came from economies of scale — long runs of more or less identical products. Thus, we had factories, assembly lines, and industries. Now profits come from speed of innovation and the ability to attract and keep customers. Where before the winners were big corporations, now the winners are small, highly flexible groups that devise great ideas, develop trustworthy branding for themselves and their products, and market these effectively. The winning competitors are those who are first at providing lower prices and higher value through intermediaries of trustworthy brands. But the winning is temporary, and the race is never over. Those in the lead cannot stop innovating lest they fall behind the competition.

3.Is the Information Economy Different from the“Knowledge Economy”,the“New Economy”, or the“Network Economy”

All these terms are used interchangeably, although the various concepts tend to emphasize different aspects of the phenomenon — like“knowledge”instead of “information”or“network”as opposed to“new”. Peter Drucker describes the information revolution as a knowledge revolution. The key, he says,is not electronics but cognitive science. The software used for computers merely reorganizes traditional work, which had been based on experience. This is done through the application of knowledge, in particular systematic, logical analysis. Setting up an IT structure is not enough. To maintain leadership in the new economy, the social position of knowledge professionals and the social acceptance of their values should be guaranteed.

The knowledge economy is also a networked economy. The concept stresses the important role of links among individuals, groups and corporations in the new economy. It has been argued that networks have always been an ideal organizing tool due to their inherent flexibility and adaptability. However,traditional networks were not designed to coordinate functions beyond a certain size and complexity.This early limitation has been overcome with the introduction of ICTs, particularly the Internet, where the flexibility and adaptability of networks are brought to the fore, and their evolutionary nature is asserted.

New Words

Phrases

information economy　　　　信息經濟

rely on　　　　依靠，依仗，信賴，指望

real time　　　　實時

multinational corporation　　　　跨國公司

tune in　　　　收聽，調整頻率（到……）

relative to　　　　關于，涉及

due to　　　　由于，歸因于

assembly line　　　　裝配線，生產線

look into　　　　調查，觀察

fall behind　　　　落后；拖欠

tend to　　　　趨向，傾向于；注意

instead of　　　　代替，而不是

as opposed to　　　　與……對照

in particular　　　　特別，尤其

Abbreviations

ICT (Information Communication Technology)　　　　 信息通信技術

Notes

[1] An information economy is where the productivity and competitiveness of units or agents in the economy (be they firms, regions or nations) depend mainly on their capacity to generate, process, and apply efficiently knowledge-based information.

本句中，An information economy作主語，where the productivity and competitiveness of units or agents in the economy (be they firms, regions or nations) depend mainly on their capacity to generate,process, and apply efficiently knowledge-based information作表語。在該表語從句中，（be they firms,regions or nations）是一個讓步狀語從句，意思是“無論是公司、地區或國家”；depend on的意思是“取決于，依靠，依賴”。

[2] While we have always relied on information exchange to do our jobs and run our lives, the information economy is different in that it can collect more relevant information at the appropriate time.本句中，While引導了一個讓步狀語從句，意思是“盡管”。rely on等于depend on；in that的意思是“由于，因為”。請看下例：

We should rely on our own efforts.

我們應該依靠自己的努力。

He likes to live in the country in that the scenery is very beautiful.

他喜歡住在鄉下是因為那里的景色非常美。

[3] Globalization will be affected by government regulations and policies, which will affect international boundaries and the structure of the global economy.

本句中，which will affect international boundaries and the structure of the global economy是一個非限定性定語從句，which指Globalization，對其做進一步補充說明。

[4] Castells looks into the history of productivity growth in advanced market economies and observes a downward trend of productivity growth starting roughly around the time that the information technology revolution was taking shape in the early 1970s.

本句中，starting roughly around the time that the information technology revolution was taking shape in the early 1970s是一個現在分詞短語，作定語，修飾和限定a downward trend of productivity growth。在該短語中，that the information technology revolution was taking shape in the early 1970s是一個定語從句，修飾和限定the time。

[5] Those in the lead cannot stop innovating lest they fall behind the competition.

本句中，in the lead作定語，修飾和限定Those。lest they fall behind the competition是一個目的狀語從句，lest的意思是“唯恐，免得，以免”。請看下例：

Batteries must be kept in dry places lest electricity should leak away.

電池應該放在干燥的地方，以免漏電。

Exercises

【Ex.1】根據課文內容，回答以下問題。

1.What is an information economy?

2.What is an information economy also described as?

3.What have we always relied on to do our jobs and run our lives?

4.What makes information plentiful in this economy?

5.What are the main characteristics of the information economy?

6.What does Stephen Cohen observe?

7.What does Castells conclude?

8.What does Robert Reich observe?

9.Why cannot those in the lead stop innovating?

10.What should be guaranteed to maintain leadership in the new economy?

【Ex.2】根據給出的漢語詞義和規定的詞類寫出相應的英語單詞。每個單詞的首字母已給出。

vt.強調，著重　　e　　　

n.全球化，全球性　　g　　　

n.公司，（合伙）商號　　f　　　

adj.靈活的，柔軟的，能變形的，可通融的　　f　　　

adj.固有的，內在的，與生俱來的　　i　　　

n.投資，可獲利的東西　　i　　　

n.限制，局限性　　l　　　

n.裝配，集結，匯編　　a　　　

n.商標，牌子　　b　　　

n.擴散，傳播　　d　　　

n.資產　　a　　　

n.流通；貨幣 cn.競爭者　　c　　　

adj.多國的，跨國公司的，多民族的　　m　　　

vt.改組，重新組織　　r　　　

n.生產力　　p　　　

vt.利用　　u　　　

n.利潤，益處，得益　　p　　　

adv.可交替地，可互換地　　i　　　

n.收益性，利益率　　p　　　

【Ex.3】把下列句子翻譯為中文。

1.Flat organizations emphasize a decentralized approach to management, which encourages high employee involvement in decisions.

2.Management and employees interact in a friendly environment characterized by mutual confidence and trust.

3.Mechanistic organizations are best suited to repetitive operations and stable environments.

4.There are a wide variety of formats for a business plan.

5.Far more important than the plan document is the planning process itself.

6.Each objective should include an action plan.

7.An action plan can help the supervisor stay organized, coordinate his or her team’s activities,

and keep projects on schedule.

8.The action plan states specifically what steps or tasks will be accomplished to achieve the objective.

9.Project-management software programs are available to help supervisors create action plans.

10.The most basic project-management program helps organize the users’ thoughts so that a simple schedule can be created.

【Ex.4】從下列詞中選擇適當的詞填空。

Information economy is a defined　1　that refers to an economy with an increased emphasis on　2　activities and information industry.

The vagueness of the term has three major　3　. First, not surprisingly, there is no agreed-upon definition　4　the threshold of when an economy is information economy and　5　it is not. This is partly due to the　6　that research has been　7　on various“increases”in informational activities, rather than the level it has achieved. It is rare to see research seriously discussing whether a certain level of“informatization”in an economy is enough to label it as information　8　.

Second, there are many different kinds of measurements of information-related economic　9　that are used by researchers. Unlike the first problem, the second problem is not the lack of attention, but the lack of　10　among various opinions.