Global Economic Development

Definition

Global Economic Development refers to the interconnected growth and changes in economies around the world, particularly during the period from 1750 to 1900. This era saw significant transformations due to industrialization, globalization, and imperial expansion, leading to new economic practices, trade routes, and increased interdependence among nations. The rise of capitalism and technological advancements played crucial roles in shaping how countries interacted economically on a global scale.

5 Must Know Facts For Your Next Test

1. The Global Economic Development during this time was heavily influenced by the Industrial Revolution, which introduced mechanization and led to a dramatic increase in production capacity.
2. New technologies like the steam engine revolutionized transportation, making it easier for goods to be traded over long distances and contributing to globalization.
3. European powers expanded their empires in Asia, Africa, and the Americas, seeking resources and new markets, which further integrated global economies.
4. The shift from mercantilist practices to capitalism allowed for increased investment in industries and infrastructure, fostering economic growth.
5. The rise of international trade organizations and agreements began to take shape, laying the groundwork for future global economic cooperation.

Review Questions

• How did the Industrial Revolution contribute to Global Economic Development from 1750 to 1900?
  • The Industrial Revolution was a major catalyst for Global Economic Development as it transitioned economies from agrarian-based systems to industrialized ones. This shift not only increased production but also necessitated new technologies for transportation and communication. As a result, countries could trade more efficiently across longer distances, leading to greater economic interdependence among nations.
• Evaluate the impact of colonial expansion on Global Economic Development during this era.
  • Colonial expansion played a critical role in Global Economic Development by allowing European powers to access vast resources and establish new markets for their manufactured goods. Colonies provided raw materials essential for industries back home while also serving as markets for finished products. This dynamic created an integrated global economy where exploitation of resources fueled growth in Europe while leading to significant economic changes in colonized regions.
• Analyze how capitalism evolved during this period and its implications for global interactions.
  • During this time frame, capitalism evolved significantly as it shifted from mercantilist practices focused on state control and regulation towards a more market-driven approach emphasizing individual entrepreneurship. This transition allowed for increased investment in industries, creating competition that spurred innovation. The implications were profound; as countries engaged in free trade, they became more interlinked economically. The capitalist model encouraged not only domestic growth but also fostered international trade relations that shaped future economic policies globally.

Related terms

Industrial Revolution:

A period of major industrialization during the late 18th and early 19th centuries that transformed economies from agrarian to industrial, resulting in significant social and economic changes.

Capitalism:

An economic system characterized by private ownership of the means of production and their operation for profit, emphasizing free markets and competition.

Mercantilism:

An economic theory and practice from the 16th to the 18th century that emphasized the importance of accumulating wealth through trade, colonial expansion, and government intervention in the economy.