Allows global competition to be faced. Lower communication and transport costs, the opening up of new markets and expanding markets have increased the number of global players. This has allowed business all over the world to take advantage of economies of scale to improve their competitive advantage . The effect of greater competition and the faster pace of innovation have been to advance the movement towards the concept of the knowledge-driven economy. Allows firms to react to changes in demand.
People now have more income, change their tastes more frequently and value their leisure time.
They also place more value on how they perceive those from whom they purchase their goods and services. This in turn reflects corporate attitudes towards both the environment and quality . More next month, so in the meantime look around you and think just where this knowledge based economy is taking you.