phases of economic development

Developments in the global economy are influenced by changes in two significant aspects:

1. The capacity to produce or manufacture (competitive advantage)

2. The capacity to distribute or transfer

what are the economic phases?

• mercantilism

• industrial revolution

• fordism

• post-fordism

• globalization

• (1500 - 1780)

• The rise of major European colonial powers, such as Spain and Portugal, brought about the emergence of a mercantilist system of trade.

  • Superpower countries accumulated wealth through trade relations with colonies

• Mercantilism

• (1780 - 1880) 

• Production and distribution became mechanized since many businessmen saw the benefit of investing in machines and equipment.

  • Large factories resulted in an increase in employment

  • The transportation system was improved

• Industrial Revolution

• (1880 - 1970)

• This phase saw the rise of multinational corporations through the pioneering work of Henry T. Ford.

  • “Fordize” became popular, and it means “to standardize a product and manufacture it by mass means at a price

• Fordism

• means “to standardize a product and manufacture it by mass means at a price

fordize

• (1970 - 2010)

• Production was no longer confined to manufacturing plants and could be done anywhere in the world through improvements in methods and IT.

  • E-commerce

• Post-Fordism

• (2010 - PRESENT)

• Companies are operating within a global marketplace and economy. This gave rise to regional economic organizations from different countries to engage in free trade, resulting in stiffer competition challenges to businesses’ sustainability

• Globalization