Electricity is seen to be a radical technology in three ways: "First, it was closely related to scientific activity, as no technology had been beforeThe second characteristic of electrical technology was its generic nature. An example of this generic nature is the fact that electric power was used as an input for a range of industries, as well as playing an important role in the emergence of the chemicals industry which introduced completely new products and processes of production. Third, the generation of electricity used different inputs (steel and coal) from earlier technologies, thereby encouraging the growth of these sectors as well" (Simonetti,337-375). The rise of the two countries USA and Germany started in this revolution.
"By the end of the nineteenth century, Britain had a well-developed educational system, a system of production based on family firms, a financial market developed around the financing of trade and large investments (joint stock companies), a strong patent system, and an empire of colonies that could serve as markets for its growing industry. The leading sectors of the economy consisted of a range of consumer goods industries, notably, textiles, metalware, paper, food, watches, and some producer good industries such as shipbuilding and textile machinery. Its industrialization and urbanization had begun before the emergence of the railroads" (Simonetti, 347). "
"However, the situation was quite different in the USA and Germany. Following the completion of the Union after the American Civil War (1861) and the unification of Germany (1871), both economies had large domestic markets. In both cases, railroad investments were made to connect the different parts of the country, and both economies enjoyed the benefits of a continent-wide system of transportation by the late nineteenth century. Moreover, large-scale investment in railways gave rise to new financial institutions and forms of corporate finance" (Simonetti, 347)
This third wave technology has enabled both USA and Germany to enjoy economies of scale. Economies of scale is defines by a Microeconomics textbook as "doubling the output for less than a doubling of costs" (Robert S. Pindyck, 227). "The term 'economies of scale' includes increasing returns to scale as a special case, but it is more general as it reflects input proportions that change as the firm changes its level of production" (Robert S. Pindyck, 227). With economies of scale and the earlier investment on railroads, Germany and USA assumed economic leadership over Britain.
The Dawn of ICT
The 21st century is a new era of man's ongoing quest for a better life and a better world. For the first time in our history, we can now claim to live in "One World." Globalization has eliminated many of the barriers that have existed between and among nations. While the physical and geographical divide still exists, the big impact of the Information Highway on how we now communicate and live is simply staggering. Through the process of globalization, cultural exchange is now possible and dynamic. Economies have also merged through international trade, with the economic life of example an Asian country now affecting other nations in other parts of the world, and vice versa. Rapid