THE

INTERNATIONAL
FINANCIAL
INSTITUTION
HISTORY OF
GLOBAL
MARKET
INTEGRATION
The Agricultural and the Industrial Revolution

• Agricultural Revolution- the first big

economic change.
• People learn how t domesticate plants
and animals, they realize it was much
more productive than hunter-gatherer
societies.
• Farming help societies build surpluses
• Farming lead to major developments
like permanent settlements, trade and
networks and population growth.
The Agricultural and the Industrial Revolution

•Industrial Revolution- Second

major economic revolution
•New economic tools
•Factories pop up and change work
functioned
•Productivity went up, standard of
living rose, people had a wider
variety of good dude to mass
production.
CAPITALISM AND SOCIALISM

•There are two competing

economic models that sprung
up around the time of the
Industrial Revolution, as
economic capital become more
and more important to the
production of goods.
1. CAPITALISM
• It is a system in which all natural resources and
means of production are privately owned
• It emphasizes profit maximization and competition
as the main drivers and efficiency.
• This means that when one owns a business, he
needs to outperform his competitors if he is going
to succeed.
• Adam Smith “invisible Hands”- the idea that if one
leaves a capitalist economy alone, consumer will
regulate thigs themselves by selecting goods and
services that provides the best value.
2. SOCIALISM

• Government plays a bigger role

• Production are under collective ownership.
• Property is owned by the government and
allocated to all citizens not only those with
money to afford it.
• It rejects capitalism’s private property and
hands-off approaches.
• Emphasize collective goals
• Karl Marx this is the stepping stone to
Communism
The
information
revolution
THE INFORMATION REVOLUTION

•Ours is the time of the

information revolution.
Technology has reduced the role
of human labor of human labor.
•Computers and other
technologies are beginning to
replace many jobs because of
outsourcing jobs
• PRIMARY LABOR MARKET- include job
that provide many benefits to workers
like high income, job security, health
insurance and retirement packages.
• Example are WHITE COLLAR PROFESSION

• SECONDARY LABOR MARKET- job

provides fewer benefits and include lower-
skilled job and lower-level service sector job.