PHASES OF ECONOMIC

DEVELOPMENT
•Topic:
Phases of Economic Development
 
• Content Standard:
the role of business in the environment, and how the
environment affects the firm
• Performance Standard:
analyze the various environmental forces affecting the
firm and summarize these using Political Economic
Social and Technological Analysis PEST) and Strengths,
Weaknesses, Opportunities and Threats (SWOT) Analysis
frameworks
• Learning Competency
discuss the different phases of economic
development
 
• Specific Learning Outcomes
At the end of this lesson, the learners are expected to:

1. Explain the role of business towards the economy;

2. Identify the different phases of economic development; and
3. Differentiate the various forms of business organizations.
• References
Organization and Management, Quarter 1 – Module 4
(Forms and Economic Roles of Business Organizations)

• Code:
ABM_AOM11-Ic-d-8
OPENING PRAYER
 ENERGIZER
PART 1- TIKTOK
 ENERGIZER
PART 2- BLOCKBUSTER
 1.
• Mercantilism Globalization Industrial Revolution Fordism
• Economic development Credit cooperative Economic Growth
• Service Cooperative Single Proprietorship Corporation
• Noun
1.
• The process of dealing with or controlling
people
•m
• Noun
1.
• The process of dealing with or controlling
people
•m
Answer: management
• Noun
2.
• The practice of making one’s living by engaging
in commerce
•b
• Noun
2.
• The practice of making one’s living by engaging
in commerce
•b
Answer: business
• Noun
3.
• The wealth and resources of a country or
region, especially in terms of the production
and consumption of goods and services
•e
• Noun
3.
• The wealth and resources of a country or
region, especially in terms of the production
and consumption of goods and services
•e

Answer: economy
• Noun
4.
• An organized body of people with a particular
purpose, especially a business, society,
association, etc.
•o
• Noun
4.
• An organized body of people with a particular
purpose, especially a business, society,
association, etc.
•o

Answer: organization
• Noun
5.
• A term used to describe how trade and
technology have made the world into a more
connected and interdependent place
•g
• Noun
5.
• A term used to describe how trade and
technology have made the world into a more
connected and interdependent place
•g

Answer: globalization
• Noun
6.
• The ability to borrow money or access goods or
services with the understanding that you’ll pay
later
•c
• Noun
6.
• The ability to borrow money or access goods or
services with the understanding that you’ll pay
later
•c

Answer: credit
• Noun
7.
• In this economic phase, countries accumulated wealth
through trade relations with other countries and colonies.
•m
 7.
•Noun
• In this economic phase, countries accumulated
wealth through trade relations with other
countries and colonies.
•m

Answer: mercantilism
• Noun
8.
• The process of change from an agrarian and handicraft
economy to one dominated by industry and machine
manufacturing
•I R
 8.
•Noun
•The process of change from an agrarian
and handicraft economy to one dominated
by industry and machine manufacturing
•I R
Answer: industrial revolution
• Noun
9.
• The major financial asset for countries and central banks
•G
 9.
•Noun
•The major financial asset for
countries and central banks
•G
Answer: gold
• Noun
10.
• People-centered enterprise owned, controlled and run by
and for their members to realize their common economic
aspirations
•C
 10.
•Noun
•People-centered enterprise owned, controlled
and run by and for their members to realize
their common economic aspirations
•C
Answer: cooperative
PRE-ASSESSMENT
TRUE OR FALSE
1. A business organization is a group of two or
more persons working together to attain a
common aspiration and set of goals.
 ANSWER

1. TRUE
2. Sole or Single Proprietorship is a form of
business organization that is owned and
controlled by two or more persons who agreed
to contribute their assets for capital.
 ANSWER

2. TRUE
3. Economic development is the process in
which a nation improves the economic,
political and social well-being of its people.
 ANSWER

3. TRUE
4. Economic development is the process in
which a nation improves the economic,
political and social well-being of its people.
 ANSWER

4. TRUE
5. Economic growth does not deal much with
the actual welfare of the people in the country
but measures the changes of Gross Domestic
Product (GDP).
 ANSWER

5. TRUE
6. Partnership is a form of business
organization that is owned and controlled by
one person and it is the simplest form of
business ownership.
 ANSWER

6. FALSE
7. Corporation is a form of business
organization which is composed of a group of
people or company authorized by the state to
act as an artificial being or judicial entities.
 ANSWER

7. TRUE
8. Cooperative is a duly registered autonomous
association of persons with different interests.
 ANSWER

8. FALSE
9. Globalization is a period considered as the
phase product competition where companies
need to maintain their quality standards of
products and services in order to attract more
customers.
 ANSWER

9. TRUE
10. One of the advantages of partnership is the
contribution and combination of concepts,
knowledge and skills to form better ideas that
can be used in management and decision-
making.
 ANSWER

10. TRUE
REVIEW OF THE PREVIOUS LESSON
 WHAT IS ECONOMY?
noun
the wealth and resources of a country
or region, especially in terms of the
production and consumption of goods and services
What is Economic Development?

It is a process in which a nation improves the

economic, political and social well-being of its
people. It includes literacy rates, infrastructure,
access to housing and healthcare. Thus, it improves
the quality standard of the life of the people.
It is simply a measurement of the change in the country’s national output, or Gross
Domestic Product (GDP). However, it does not deal much with the actual welfare of the
people in the country.
 WHAT IS GDP?
• Gross domestic product (GDP) is the total
monetary or market value of all the finished
goods and services produced within a
country’s borders in a specific time period. As
a broad measure of overall domestic
production, it functions as a comprehensive
scorecard of a given country’s economic
health.
Nominal GDP Rankings by Country
What are the largest economies in the world? According to
the International Monetary Fund, these are the highest
ranking countries in the world in nominal GDP:

1.United States (GDP: 20.49 trillion)

2.China (GDP: 13.4 trillion)
3.Japan: (GDP: 4.97 trillion)
4.Germany: (GDP: 4.00 trillion)
5.United Kingdom: (GDP: 2.83 trillion)
6.France: (GDP: 2.78 trillion)
7.India: (GDP: 2.72 trillion)
8.Italy: (GDP: 2.07 trillion)
9.Brazil: (GDP: 1.87 trillion)
10.Canada: (GDP: 1.71 trillion)
The development in the world economy is
influenced by two aspects of significant
changes :
1. Capacity to produce or manufacture
goods and commodities, and
2. Capacity to Distribute or transport to
the market.
The world economy had
experience five major phases
of economic development:

1. Mercantilism (1500 to
1780)
In this economic phase,
countries accumulated wealth
through trade relations with
other countries and colonies.
2. Industrial Revolution (1780 to
1880)
Production and distribution became
mechanized since many
businessmen saw the benefit of
investing in machines and
equipment.
3. Fordism (1880 to 1970)
Henry Ford introduced a
standardized production process
for his Ford Model T automobile
which resulted in increased
production and profit. Thus, this
phase saw the rise of
multinational corporations
through the pioneering work of
Ford Motor Company.
 
4. Post Fordism (1970 to 2010)
This is the emergence of
technology. Production was no
longer confined to manufacturing
plants and it could be done
anywhere in the world through
the innovations and improvements
in production methods and
Information Technology like
computer-controlled tools that
efficiently customized the
production process.
• The key difference between Fordism and Post Fordism is that Fordism refers to the large
scale production of identical products, whereas Post Fordism refers to the flexible
specialization of production in small batches.
5. Globalization (2010 to present)
We are now in the age of
globalization where companies are
operating within a global market
economy. This period is considered as
the phase product competition where
companies need to maintain their
quality standards of products and
services in order to attract more
customers and to maintain the
sustainability of business operation
too.