Short History of GLOBAL MARKET INTEGRATION in 20th century - BSIT - Block K

Summary

This video explores the history of global market integration in the 20th century, starting from the Agricultural Revolution in the Fertile Crescent to the Industrial Revolution in Europe and America. It discusses how technological advancements like the steam engine and improved transport networks led to a more interconnected world economy. The script also highlights the economic and social impacts of these changes, including increased productivity, urbanization, and widening economic disparities.

Takeaways

• 🌐 Global market integration in the 20th century refers to the process of combining separate national economies into a larger economic region.
• 📈 Integration occurs when goods and services prices follow similar patterns across different markets over a long period.
• 🏭 The Industrial Revolution, starting in the 1800s, was a major driver of global market integration, transforming agrarian and handicraft economies into industrial and urbanized ones.
• 🌾 The Agricultural Revolution, or Neolithic Revolution, was a precursor to the Industrial Revolution, allowing for the domestication of plants and animals, leading to surpluses and population growth.
• 🚂 Technological advancements like the steam engine, railroads, and marine steam engines were critical to the creation of a global transport network.
• 🌍 The reduction in transport costs due to technological advancements allowed goods to be traded across the world more cheaply than local production.
• 🏙️ The Industrial Revolution led to the rise of industrial towns and cities, with Britain being the birthplace and early leader in industrialization.
• 🏛️ The Fertile Crescent is considered the cradle of agriculture, where early agricultural societies formed due to its ideal farming conditions.
• 🔩 The iron and steel industry was key to constructing the machinery and infrastructure needed for industrial progress.
• 🌉 Improved infrastructure like roads, canals, and railways facilitated the movement of goods and contributed to the growth of industrial towns.
• 🌉 The shift from cottage industry to factory production increased productivity and led to mass production, but also resulted in economic inequality and poor working conditions.

Q & A

What is the definition of global market integration?

Global market integration refers to the process where separate national economies become more interconnected, forming a larger economic region. It involves the exchange of goods, services, and capital across borders, leading to a more unified and interdependent global economy.

How does market integration manifest in the context of goods and services?

Market integration occurs when prices of goods and services in different locations follow similar patterns over a long period of time. If groups of goods move proportionally to each other and their price relationships are clear among different markets, it indicates that the markets are integrated.

What is the significance of the Agricultural Revolution in the context of global market integration?

The Agricultural Revolution was a turning point in the history of the world, leading to the first major economic change. It allowed societies to build surpluses, which in turn led to the development of permanent settlements, trade networks, and population growth, laying the foundation for global market integration.

What role did the Fertile Crescent play in the development of agriculture?

The Fertile Crescent, located in what is now Northern Africa and the Middle East, was the first place where humans settled into agricultural villages. Its fertile soil, gentle rains, and long growing seasons made it an ideal spot for farming, thus playing a crucial role in the development of agriculture.

How did the Industrial Revolution transform economic and social structures in Europe and America?

The Industrial Revolution transformed agrarian and handicraft economies into industrial, urbanized ones. It saw the development of mechanization in factories, mass production, and the rise of wage labor. This led to increased productivity, urbanization, and economic growth, but also resulted in poor working conditions and increased economic inequality.

What was the impact of the steam engine on industrialization?

The steam engine was integral to industrialization, as it powered factories, locomotives, and ships. It allowed for the increased use of machines over human or animal power, leading to greater efficiency and the development of new industries.

Why was Britain the birthplace of the Industrial Revolution?

Britain was the birthplace of the Industrial Revolution due to factors such as relative peace and stability, abundant native resources, a powerful navy, and a supportive environment for engineers and inventors. Additionally, the wealth from its colonies provided a catalyst for industrialization.

How did the Industrial Revolution affect the population distribution in Britain?

The Industrial Revolution led to a significant shift in population distribution, with people moving from the countryside to cities for industrial labor opportunities. By 1900, 85 percent of Great Britain's population lived in towns or cities, compared to only 15 percent in 1750.

What were the economic casualties of the Industrial Revolution?

The economic casualties of the Industrial Revolution included poor working conditions, low wages, and dangerous work environments, primarily for women and children who were the main factory workers. This led to increased economic inequality despite overall productivity gains.

How did technological advancements contribute to international market integration?

Technological advancements such as the railroad, locomotive, and marine steam engine revolutionized world transport, connecting distant markets and reducing transportation costs. This allowed goods to be carried across the world more efficiently, contributing to the creation of a truly global economy.