Industrialization PDF

INDUSTRIALIZATION The First Industrial Revolution Took place from the 1700s to the mid-1800s The ever increasing demand of people for more goods, steam engine trains, and many machine tools, an essential factor at that time The demand to transport goods led the way for railroad...

INDUSTRIALIZATION The First Industrial Revolution Took place from the 1700s to the mid-1800s The ever increasing demand of people for more goods, steam engine trains, and many machine tools, an essential factor at that time The demand to transport goods led the way for railroad were the primary energy resources Iron and coal used for steam engines for more operations in factories The Second Industrial Revolution Took place from the mid 1800s to the mid- 1900s with Europe and the USA taking the lead The second industrial revolution brought about the so called "modern life" Nature greatly utilized for the production of goods and services of food Entrepreneurship, international trade, and creation of markets for trading shares of stocks Immense cultivation of knowledge in science and applied technology Steam, electricity, and engine-powered boats, cars, and airplanes made transportation of goods and services faster and more reliable The impossible became possible, like food preservation with the use of refrigeration and canning The farmers were displaced and became workers in factories Photography, music, motion pictures were introduced Publishing industry making information available everywhere in newspapers and other published materials More exports, steel production, shipbuilding, and factories The Third Industrial Revolution Mid-1900s to 1999 This era revolved around computerization, market competition, and globalization Scientific management continued to be developed The Toyota Production System was introduced which revolutionized the production of cars taking over the car manufacturing world market In 1982, Deming introduced the philosophy on "Fourteen Points" of quality management In 1987, Motorola introduced a better total quality tool called the "Six Sigma" Total Quality Management was widely taught and studied in colleges and universities US, Japan, Germany - sophisticated computer technology, high speed travel air capability  Led the way to the transfer of multi national companies to Asia because of cheaper materials and albor China began dominating the globalized economy by selling garments, toys, technological products, household things, and other consumer prodcts at the cheapest price. The fourth Industrial Revolution From the year 2000 to the present time or more commonly known as the 21s century Management systems like Total Quality Management, Lean Production, and the Six Sigma became widely practiced nationwide More production of goods and services traded in a globalized economy To improve productivity to increase the standard of living Focused on biotechnology, additive manufacturing (3D printing), and transportation Almost everywhere, regardless of social status or even social media account, has one or more smart device Public transportation that are run by automated technology Samsung and Hyundai continuously develop self-driving automobiles Industrialization [in-,da-stre-a-la- za-shan] The process by which an economy is transformed from a primarily agricultural one to one based on the manufacturing of goods. Industrialization Mechanized methods of mass production are an essential component of this transition. The positive characteristics of industrialization include economic growth, a more efficient division of labor, and a growth spurt in technological innovation. Industrialization can be driven by a combination of factors including government policy, labor-saving inventions, entrepreneurial ambitions, and a demand for goods and services. It has profound implications for the population, causing a wave of migration from small farms to cities and towns where jobs can be found. The most dramatic example in recent history is that of China, where government policy changes in the late 20th century led to the nation's transition from an economy based on subsistence farming to a global manufacturing powerhouse. Effects of Industrialization 1. allowed for the mass production of commercial goods 2. transportation, finance, and communications industries all expanded 3. led to increased labor specialization 4. motivating a rapid demographic shift. People left rural areas in large numbers, seeking jobs in budding industries. 5. led to unprecedented expansion in wealth and financial well-being for some. 6. led to unprecedented expansion in wealth and financial well-being for some. Manufacturing. Industrialization began with the invention of machines that greatly increased the manufacture of goods. Transportation. The 19th century was a period of unparalleled innovation in ways to transport goods from and to marketplaces. Mining. Many of the great inventions of the 19th century were developed to serve the mining industry. Retailing. Before contactless payments and self-service checkouts, there were innovations in retailing that were designed to appeal to 19th century shoppers. Effects of Industrialization (Industrialization Changes Life) The factory system changes the way people live and work, introducing a variety of problems. Factory Work. factories pay more expensive good demand for more Work becomes separated from home life. Industrial Cities Rise Urbanization-city-building and movement of people to cities Growing population provides work force and a market for factory goods - Living Conditions In Industrial Cities Sickness widespread; epidemics, like cholera, sweep urban slums Wealthy merchants, factory owners live in luxurious suburban homes Rapidly growing cities lack sanitary codes and building codes Cities also without adequate housing, education, and police protection Modes of Industrialization Mercantilism ['mar-kan-,te-,li-zam] An economic system of trade that spanned from the 16th century to the 18th century and was based on the idea that a nation's wealth and power were best served by increasing exports and trade. Mercantilism was a form of economic nationalism that sought to increase the prosperity and power of a nation through restrictive trade practices. Its goal was to increase the supply of a state's gold and silver with exports rather than to deplete it through imports. Mercantilism was based on the idea that a nation's wealth and power were best served by increasing exports and limiting imports 2. Exportation - surplus 3. Importation - shortage 4. import-substituting industrialization - Import substitution industrialization (ISI) is a theory of economics typically adhered to by developing countries or emerging market nations that seek to decrease their dependence on developed countries. The primary goal of the implemented substitution industrialization theory is to protect, strengthen, and trouding fants, tmport guetas, and subsidized government loans. Countries implementing this theory attempt to shore up production channels for each stage of a product's development. ISI runs directly counter to the comparative advantage concept that occurs when countries specialize in producing goods at a lower opportunity cost and export them. - 5. laissez-faire or free-market approach that encouraged foreign trade, providing new outlets for industrial output. Laissez-faire is an economic theory dating back to the 18th century that opposes any government intervention in business affairs. The driving principle behind laissez-faire economics is that the less the government is involved in the economy, the better off business, and society as a whole, will be. It is a French term that translates to "leave alone," or more literally to "let you do." - 6. Protectionism - increasing tariffs, import quotas, or more regulations to products derived from other countries - Today, we are experiencing the 5 industrial revolution (industrialization), where goods and services are available that were considered impossible half a century earlier. There is a price that must be paid with a modernized, industrialized economy. We need to constantly visit our laws and policies t protect the future generation from total degradation. COSTS OF INDUSTRIALIZATION 1. Environmental Disadvantages. One negative byproduct of industrialization is environmental pollution that harms human health. 2. Financial Disadvantages. Industrialization results in a wider gap between the rich and poor due to a division of labor and capital. Those who own capital tend to accumulate excessive profits derived from their economic activities, resulting in a higher disparity of income and wealth. Social Disadvantages. Poor living and working conditions Exposure to hazardous conditions Child labor Unchecked pollution Overuse of fossil fuels The mechanization of farming, with questionable health benefits New Ideas About Economics Adam Smith Leading advocate of Laissez-Faire economics Published book "Wealth of Nations" Promoted a market economy -- wrote all markets should be free of government intervention and regulation. Businesses can freely compete against one another Thomas Malthus Wrote that population growth would always grow faster than food production. Believed only war, disease, famine and decreased reproduction would cure this problem. Believed the poor should have less children Robert Owen Thought that for the good of all, the government, not the individuals should own property and control industry. This concept is known as Socialism. Built towns around his mills to demonstrate. Provided free schools, non-profit shops, better working conditions and decent housing. In turn imposed strict rules on workers personal lives. Karl Marx Declared as capitalism grew, more and more workers would descend into poverty and in time would rebel and capture the "means of production" Workers would then establish a society based on cooperation and an equal distribution of wealth. Workers would have to control the government. Communism - System in which the government owns almost all means of production and controls economic planning.