The Evolution of Economic Theories its Impacts on

The Evolution of Economic Theories & its Impacts on Business By Crystal

Six Topics Feudalism Mercantilism Industrial Revolution Capitalism Property Rights Commerce

Feudalism “Land exchanged for loyalty” • Medieval period from the 9 th -15 th century AD in Europe • Political organization controlled by an elite called the lord • Vassals serve as warriors and conduct work for the lord • Examples of Feudalism can be seen during 12 th century England 11 th century France

Mercantilism • Mercantilism is an economic theory that says the success of a nation depends on its capital supply • Maximize exports and minimize imports • Adam Smith attacks Mercantilism with his book The Wealth of Nations • Mercantilists ≠ absolute & comparative advantage

Industrial Revolution 1760 -1850 • Fundamental changes in: • Agriculture • Textile • Metal manufacture • Transportation • Economic policies The Spinning Jenny

Causes of the Industrial Revolution • End of feudalism • Enclosure movement • Colonial expansion of the 17 th century • Creation of financial markets • Scientific revolution

Capitalism “Survival of the fittest” • An economic system in which corporations and private individuals own & maintain: – Means of production – Distribution – Exchange of wealth – Investment Disadvantages • Those that can't/don't thrive in the system, and otherwise lack participation, are culled • Those that best "fit" that environment survive and maintain the rules/laws. Advantages • Successful capitalistic systems tend to be open and competitive. • A healthy capitalistic system results in economic incentives.

Property Rights • Property rights such as patents for mechanical improvements derived from the industrial revolution and capitalistic ideologies The Reverberatory Furnace

Commerce • Commerce has increased exponentially • Causes • Industrial Revolution • Capitalism

Summary • Feudalism • Mercantilism • Industrial Revolution • Property Rights • Capitalism • Exponential Commerce Growth

References • • • Stephenson, Carl. Encyclopedia Britannica Online. (2008). Feudalism. Encyclopedia Britannica Online. Retrieved March 15, 2008, from Encyclopedia Britannica Online on the World Wide Web: http: //www. britannica. com/bps/topic/205583/feudalism Concise Encyclopedia of Economics, The la. Haye, Laura, Mercantilism http: //www. econlib. org/library/Enc/Mercantilism. html Hooker, Richard. (1996). Capitalism: The European Enlightenment Glossary. Retrieved March 15, 2008, from Washington State University on the World Wide Web: http: //www. wsu. edu/~dee/GLOSSARY/CAPITAL. HTM Wikipedia the Free Encyclopedia. March 10, 2008. Retrieved March 15, 2008 from the World Wide Web: http: //en. wikipedia. org/wiki/Commerce Wikipedia the Free Encyclopedia. March 13, 2008. Retrieved March 15, 2008 from the World Wide Web: http: //en. wikipedia. org/wiki/Property Wikipedia the Free Encyclopedia. March 15, 2008. Retrieved March 15, 2008 from the World Wide Web: http: //en. wikipedia. org/wiki/Industrial_Revolution