Concept of Conflict within New Economy Environment and Its Impact on the Market Mechanism

The success of economic transition for countries mainly requires economic and politic stability. However the conflict paradigm affects the nature of economic transition. In this process, innovations have changed product technologies which have been required by economic growth. Presently, automation in standardized production industry is used as if it will take over the wage labor. Crises brought uniformities into agenda. Computer integrated manufacturing appeared in the midst of 1990s. However, production still tended to move to other countries with cheaper labor. The study focuses on interaction between the conflict and market mechanism in the light of the knowledge-based economic development.Keywords: new economy; conflict risk; globalization; financial system; market mechanism