The Evolution of Economic Theories

1
The Evolution of Economic Theories its
Impacts on Business By Crystal
2
Six Topics
Feudalism Mercantilism Industrial Revolution
Capitalism Property Rights Commerce
3
FeudalismLand exchanged for loyalty

• Medieval period from the 9th -15th 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 12th
  century England and 11th century France

4
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

5
Industrial Revolution
1760-1850

• Fundamental changes in
• Agriculture
• Textile
• Metal manufacture
• Transportation
• Economic policies

The Spinning Jenny
6
Causes of the Industrial Revolution

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

7
CapitalismSurvival 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.

8
Property Rights

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

The Reverberatory Furnace
9
Commerce

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

10
Summary

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

11
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/fe
  udalism
• Concise Encyclopedia of Economics, The laHaye,
  Laura, Mercantilismhttp//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
  Webhttp//en.wikipedia.org/wiki/Industrial_Revolu
  tion