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　　　　信息经济

rely on　　　　依靠，依仗，信赖，指望

real time　　　　实时

multinational corporation　　　　跨国公司

tune in　　　　收听，调整频率（到……）

relative to　　　　关于，涉及

due to　　　　由于，归因于

assembly line　　　　装配线，生产线

look into　　　　调查，观察

fall behind　　　　落后；拖欠

tend to　　　　趋向，倾向于；注意

instead of　　　　代替，而不是

as opposed to　　　　与……对照

in particular　　　　特别，尤其

Abbreviations

ICT (Information Communication Technology)　　　　 信息通信技术

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作主语，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作表语。在该表语从句中，（be they firms,regions or nations）是一个让步状语从句，意思是“无论是公司、地区或国家”；depend on的意思是“取决于，依靠，依赖”。

[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引导了一个让步状语从句，意思是“尽管”。rely on等于depend on；in that的意思是“由于，因为”。请看下例：

We should rely on our own efforts.

我们应该依靠自己的努力。

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

他喜欢住在乡下是因为那里的景色非常美。

[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是一个非限定性定语从句，which指Globalization，对其做进一步补充说明。

[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是一个现在分词短语，作定语，修饰和限定a downward trend of productivity growth。在该短语中，that the information technology revolution was taking shape in the early 1970s是一个定语从句，修饰和限定the time。

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

本句中，in the lead作定语，修饰和限定Those。lest they fall behind the competition是一个目的状语从句，lest的意思是“唯恐，免得，以免”。请看下例：

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

电池应该放在干燥的地方，以免漏电。

Exercises

【Ex.1】根据课文内容，回答以下问题。

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】根据给出的汉语词义和规定的词类写出相应的英语单词。每个单词的首字母已给出。

vt.强调，着重　　e　　　

n.全球化，全球性　　g　　　

n.公司，（合伙）商号　　f　　　

adj.灵活的，柔软的，能变形的，可通融的　　f　　　

adj.固有的，内在的，与生俱来的　　i　　　

n.投资，可获利的东西　　i　　　

n.限制，局限性　　l　　　

n.装配，集结，汇编　　a　　　

n.商标，牌子　　b　　　

n.扩散，传播　　d　　　

n.资产　　a　　　

n.流通；货币 cn.竞争者　　c　　　

adj.多国的，跨国公司的，多民族的　　m　　　

vt.改组，重新组织　　r　　　

n.生产力　　p　　　

vt.利用　　u　　　

n.利润，益处，得益　　p　　　

adv.可交替地，可互换地　　i　　　

n.收益性，利益率　　p　　　

【Ex.3】把下列句子翻译为中文。

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】从下列词中选择适当的词填空。

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.