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How did the world come to look as it does today? - Coggle Diagram
How did the world come to look as it does today?
thanks to
Economic systems
Free Market economy
Capitalism
Capitalist Revolution: emergence of capitalism
accompanied by
Specialization
lead to an
allowed
means
different producers
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Technology
raised the amounts that could be produced
allowed
creation of
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associated with increase in
Living standards
measured by
GDP per capita
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represented in
History's hockey stick
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increased at
different rates in different countries
18th century
is a combination of
Descentralization
Centralization
It limits the power of owners
because they face competition in
Institutions
three main are
Firms
in which
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facilitate cooperation among
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that are the only seller of a product without close substitutes
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labour market
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can vary in
quality
can determine if it is or isn't a
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combine with
governments
establish, enforce and change
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.
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provide essential goods
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Separation of labor and capital
people adapt to the demands of the economy
Loss of self reliance
workers didn't support themselves
Inequality
owners of assets and money generated wealth more easily by living off the labor of others
lead to
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Loss of political freedom
money influence had a greater influence over public policy
workplace became the foundation of society
Cultural changes
people began to compartmentalize their lives
mutually exclusive objectives
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Central economy
central authority (government) makes economic decisions
example
Former China
Feudalism
Monarchs maintained controlled with the support of lords, that provided land in exchange of service.
example
Europe 9th to 15th century
Mixed economy
combination of private and state enterprise
example
ex: The United States of America
Traditional economy
relies on customs, history and traditional beliefs
example
Haiti
Globalization
is divided in
stages
Globalization 1.0
Local goods, products and ideas
Cheaper and faster transportation of goods
caused people to use
machines
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lead to
World trade: Goods came from all over the world. Slow movement of information and ideas.
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Globalization 2.0
Globalization 3.0
Global supply chain
promotes
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Globalization 4.0
Virtual presence revolution
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