The impact of industrialization in the world economy

Industrialization — the period of transformation from an agricultural economy to an urban, mass-producing economy — has accompanied every period of sustained per capita gross domestic product GDP growth in recorded history.

The impact of industrialization in the world economy

Print this page The transformation of the economy For a few decades in the 19th century British manufactured goods dominated world trade. Most mass manufactured items were produced more efficiently and competitively in Britain than elsewhere.

She also had the commercial, financial and political power to edge out rivals at home and abroad. In some industries, most notably textiles, massive changes took place in technology and in the organisation of production causing dramatic productivity growth. This in turn brought a steep decline in prices.

In many other sectors more modest organisational improvements coupled with greater specialisation and the employment of cheap labour brought similar, though less dramatic, results. An unprecedented range and variety of products thus came within the grasp of a new mass market both within Britain and overseas.

No other country could at first compete so Britain became the workshop of the world. For a few decades in the 19th century British manufactured goods dominated world trade. The period from the late 18th century to the mid-Victorian years witnessed a major shake up and change in both the economy and society.

This was seen in the organisation and finance of industry and commerce, the skills and work practices of production and technology, massive population growth and urbanisation and the development and disciplining of labour.

Canal, river, road and sea transport were all greatly improved.

Impacts and Carrying Capacity

From the s, railways revolutionised the speed of communication and the transport of passengers and, more gradually, freight. The role of government on both national and local levels was considerably transformed. The dynamism of the economy shifted firmly from agriculture to industry and trade.

Some regions, notably coalfield areas, rapidly industrialised. Others saw revolutionary change focused around the development of trade and ship building in port cities.

The impact of industrialization in the world economy

Some regions concentrated on commercial agriculture and others stagnated. By the mid 19th century, industrialisation had altered the lives of women and children as much as those of men.

Ideas of gender and ethnicity as well as class had changed. Industrialisation had affected consumption and commerce as much as industry, leisure as much as work. It involved shifts in motivations, aspirations, ideologies and aesthetics.

Many sectors and many regions changed only slowly. The growth of national income remained slow.

The impact of industrialization in the world economy

It did not reach more than three per cent per annum until well into the Victorian period and then decelerated again from the third quarter of the 19th century.

Britain's industrial supremacy involved the growth of some large firms with thousands of workers under one roof and employing powered machinery. However, these were exceptions, even in cotton manufacture.

Typical firms in the mid century employed about 50 workers, most of whom were not machine operatives. Much industry remained small-scale and labour intensive, oriented towards niche rather than mass markets. Manufacturing, especially in the growing towns and cities, was founded on the proliferation of back street, unregulated workshops with a preponderance of cheap female labour.

BREAKING DOWN 'Developed Economy'

Small family firms dominated over large partnerships or shareholdings.Industrial development has had an important role in the economic growth of countries like China, the Republic of Korea (Korea), Taiwan Province of .

Positive Impact of Industrialization Low cost of production: The introduction of industries have led to the decrease in the cost of production of many essential items.

The decrease in cost is the result of economy of Large scale production. Nov 19,  · During the middle of the s, cotton became the world's largest commodity.

The cheapest and best cotton came from the southern United States. A Review of the Role and Impact of Export Processing Zones August Dorsati Madani Address: PREM- EP The World Bank EM: [email protected] Industrialisation or industrialization is the period of social and economic change that transforms a human group from an agrarian society into an industrial society, involving the extensive re-organisation of an economy for the purpose of manufacturing.

The value-capture problem for innovators in the digital economy involves some different challenges from those in the industrial economy.

It inevitably requires understanding the dynamics of .

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