Comparison the Commercial Revolution and Industrial Revolution (1500-2000 AD) - Essay Example

Compare and contrast the Commercial Revolution and Industrial Revolution. (1500-2000 AD) Introduction The rise of the commercial and industrial revolution caused a major shift in the pattern of occupation of the global population. A maximum number of people in the economies influenced by commercial and industrial revolution shifted their base from agriculture to industries. Thus the number of people adhering to agricultural activities gradually decreased. The emergence of the industrial and commercial revolution led to the advent of capitalism and hence triggered the growth of urbanization. Social dominance also figured a huge transformation from the feudal system to the growth of merchants and traders. Further the commercial and industrial society gained huge profits through the means of mass production. (“Commercial/Industrial Societies”) The growth of economic activities in countries like Europe rapidly pushed the development of trade and mercantile zones which traded on the goods produced by the manufacturing units. Growth in trade and commerce caused a greater capital inflow in the regions. The modern economy thus was observed to shift its dependence from the agricultural base to mercantile and commercial base. The above changes reflect an emergence of a revolution which came to be known as the Commercial Revolution. Advent of commercial revolution also led to the emergence of banks and other financial institutions which acted as middlemen in the economic system. (“The Commercial Revolution”) The Commercial Revolution gained potential in regions like Europe and United Kingdom with the growth of industrial societies. Growth of the industrial societies was spearheaded by the rapid development of transport systems. Thus certain regions of the world became the potential centers which catered to the mass production of goods and services leading to Industrial Revolution. (Knowles, 10) The World before Globalization (1500 AD) The trade and commercial activities of the global economies was restricted within the boundaries of such countries in the absence of the concept of globalization. Different countries of the world showed no proper connection with each other. Trade and Commercial activities only existed within regional barriers with no such international linkage. However, restricted trade in the international sphere was observed between the European countries with regions like China and Africa. The international trade between the European countries with Chinese and African counterparts was restricted in nature for it did not encompass direct transactions between the trade bodies of such countries. Rather the commercialization advocated during such period amongst the mentioned countries depended more on the involvement of middlemen. The increasing nexus of third parties in managing the affairs of international trade between the countries made the people of the trading nations highly dependent on them. This led to the people to suffer from the event of restricted theoretical and experience based knowledge in matters of international trade. Thus the absence of direct touch between the trade bodies of the different countries restricted the advent of commercialization in the global scale. However, the different world regions were endeavoring to share the technological and cultural approach which acted as a predecessor to the spread of commercial activities. Still the technological and cultural sharing was also a slow process which caused a delay in the internationalization of the commercial activities. (Peoples & Bailey, 356) Prior to the period of globalization the rapid development of the industrial and commercial activities was observed to gain ground in the Mediterranean region. During the period ranging from 1000 to 1500 AD the European regions reflected gradual development in the trade sphere in acquiring linkages with the Arab countries. The linkages made with the Arab countries helped the European nations to augment trade and commercial activities by the use of the sea route. The advent of commercial activities through the use of marine routes led to the development of coastal societies concentrating on such activities. Moreover, the advent of sea trade on a large scale triggered the growth of industries specially catering to ship building activities. The effect of the creation of maritime trade zones led to the spreading of economic activity from the Mediterranean region to other parts of Central and Northern Europe. Spread of economic activity along these regions culminated in the development of industrial and transportation zones in the countries. With the development of transportation networks the economic structure of the countries started incorporating the growth of manufacturing companies producing goods on a large scale. (“Commercial/Industrial Societies”) Commercial and Industrial Revolution (1500 to 2000 AD) Industrial Revolution during the period 1600 to 1800 AD The industrial revolution that started during the 1600 AD helped in the process of disintegration of the iron from the ore. In the days prior to the advent of the industrial revolution the process of iron making involved the separation of the metal from the impure ore through burning the ore in furnace fuelled by a burning agent. This process led to the flow of molten iron which had to be manually hammered into sheets. However, due to the advent of industrial revolution during the 1600 AD the extracted iron known as pigs was transported to the industries having the availability of a rolling mill. The existence of a rolling mill helped in the reheating of the pig iron which was then converted into sheets through the use of rollers. Further, the industrial revolution gained more impetus during the period of 1700 AD. The reason for the advent of industrial revolution during this period was the large availability of coal and iron ores spread along the region of Great Britain. With the development of the industrial scenario Britain became the largest exporter of coal and textile products to many regional and far reaching countries. The British dominion over the iron and textile market in the global sphere was rendered further impetus with the growth in demand for the British products. Industries in the other global countries in an endeavor to compete with the British products rendered further stress on production with limited resource base. The limited availability of labor and raw materials needed to produce the goods eventually contributed in the augmenting the production costs and thereby reducing profits. The above fact explains the reason of the increased dependence of the other countries on British commodities which triggered the industrial progress. Industrial revolution further progressed from the period of 1700 to 1800 AD. The advent of industrial revolution made it spread from Britain, to United States and other parts of the European continent. Further, the advent of industrial revolution in the European countries also reflected on the changed lifestyle of the people living in such countries. It also rendered considerable effect on the socio-political system of the country. The industrial revolution during the period ranging from 1750 to 1800 led to the automation of the manufacturing process. Introduction of machines driven by power carved the inception of modern factories in Britain. Tremendous growth in Industrial Revolution in England also transformed the transportation system of the country. Development of transport system enabled through the broadening up of waterways and roads during the latter half of 1800 AD further triggered the development of trade activities. (“Industrial Revolution”) Commercial Revolution during the period 1600 to 1800 AD The industrial revolution in Britain triggered the effect of mass production of goods and services which were increasingly traded along the globe. With the increase in activities related to trade the country became the host of huge capital inflows from many parts of the world. This growth in the flow of capital in the countries influenced the growth of financial institutions like banks to take care of it. Growth of banks in United Kingdom rapidly increased from only 20 banks during the period of 1750 to 70 banks during the period of 1800 AD. (“Industrial Revolution”) The commercial revolution brought about in United Kingdom was further spearheaded by the activities of different investors. These groups of investors invested in huge amounts in the countries’ industries and demanded a fair return on the investments made. Moreover, the investors looked forward in enhancing the economic and financial potential of the country through the creation of more number of banks. They also wanted the government to extend more credit facilities to them for making larger investments. However, the government of United Kingdom increasingly practiced the system of Laissez Faire. Thus, the government reflected no possible interventions in the pattern of trade and operation mechanisms of the country which was seemingly exploited by the factory owners. (Hackett) During the period of 1500 AD it is observed that the growth of commercialization was brought about by the Portuguese invasion on the Islam colonies. The Islamic population had gathered in certain areas of the world from where they carried on their trade on spices. However, Portuguese invasion over such Muslim dominated areas reduced Islamic dominance over the trade. More specifically it is observed that the region of South East Asia gained huge dominance in the commercial front as regions of Japan had obtained. With the advent of commercialization in South East Asia it entered into the periphery of the world markets. The production and consumption parameters became rapidly commercialized which rendered further impetus in the emergence of specialized trade and business activities. Moreover, such commercialization practice also contributed to the economic growth of the region as the practice of taxation policies emerged on the scene. It also led to the growth of security and transport activities of the regions. However, the advent of commercial practices on a large scale in the South East Asia regions during the middle of the 1600 AD gave it further impetus to gain access to global markets. South East Asia’s ascension to the global markets led the region to fall prey to European hands. Thus during the inception of 1700 AD the urban market zones of the South East Asian region received a blow from the international markets which led to the fall of its trading empire. (Ooi, 126-127). The advent of commercialization during the period ranging from 1500 to 1800 AD reflected huge trend in urbanization. Impact of commercialization in the context of Japan contributed in the creation of huge urban sectors spread along towns and cities. It was observed that during the period of 1600 AD around 4.4 percent of the total Japanese population dwelled in the township areas. Consequently during the period of 1800 AD it was found that around 12.3 percent of the Japanese population migrated to the urban landscapes. Large aspects of commercialization encouraged the transformation of the villages to small township areas along the country. Further observation shows that the growth in the urban landscape in the country rendered greater impetus in changing the pattern of lifestyle in the country. It was observed in this connection that the growth of commercial centers helped in expanding the market base for goods and services whether agricultural or industrial. Further, the advent of urbanization also helped the emergence of special trades pertaining to entertainment and support services for the household population flung in cities. (Maddison, 145-146). Industrial Revolution during the period 1800 to 2000 AD The further impetus of the industrial revolution during the beginning of 1800 AD brought about paradigm changes in the productive capacity of the industrialized nations like United Kingdom and United States. In addition to the huge amount of revolution brought about in the production system of the industrialized nations the industrial revolution rendered huge impetus to transform the traditional social system of the countries. The advent of industrial revolution in the developed countries like United Kingdom, United States and in some parts of Europe contributed in the creation of the labor class and the rise of middlemen. (Kreis) Further observation shows that by the start of 1800 AD the region of England had sufficient power looms to cater to the huge demand for its textile products. However, the period of warfare spread by Napoleon put pressure on United States to render stress on making further innovations. In New York by the start of the 1810 period machine driven textile factories started emerging. More number of regions in United States started to be flooded by the machine driven factories which extended from textile to shoe manufacturing firms. Farming and transportation means in United Kingdom and United States were started to be mechanized through the advent of industrial innovations on a large scale. The further advance of the industrial revolution helped in the betterment of communication technologies through the creation of telephonic communication systems. The second part of the industrial revolution in the developed nations rendered huge potential to the industries for carrying out production in mass scales. The advancement in the field of industrial revolution also made the industries to carry out production based on assembled machines whose parts can be readily exchanged with others. Machines in the different industries were made to run faster and more efficiently through the increased use of electrical power. Newer methods and processes of production came into effect through the innovations carried out by modern entrepreneurs like Henry Ford. All around the economic condition of the countries started soaring for huge amount of production which excelled in quality and volume. However, by the inception of the First World War during the period of 1914 observation made shows that only a handful of countries had taken resort to machinery driven productive practices. Countries like Italy, Japan, Canada and the Soviet Republic had still not taken resort to machinery driven productive practices. (Hackett) The advance of industrial development also showed a large amount of child population employed in the harsh factories along with their parents. However, to this end streams of reform movements were carried out to bring about legislations barring child labor in factories. The industrial revolution further advanced during the latter part of the 20th century to bring about the emergence of the electronic revolution which is still promoting further innovations in the electrical field. (“History of the Industrial Revolution”) The increased promotion of technological development and use gave birth to the concept of technology states in the developed countries. The regions of United States like California, Texas, Florida, Georgia to name a few for their extensive use of technology in creating an effective technological environment for customers are referred to as the technology states. (“Technology User Profile-Top 10 Technology States Profile Report”). Commercial Revolution during the period 1800 to 2000 AD Observation made on the growth of commercial revolution in the context of the European continent shows that the financial and banking system of the countries was quite fragile to support the industrial development. The banking system of many European nations suffered greatly from lack of funds and had a weaker credit system. However, the banking system of the European countries carried out its expansion drives with the steady incorporation of private holdings in the banking sphere. A group of big banks merged themselves to form banking corporations. These banking corporations carried out activities in relation to corporate and investment portfolios in the country. The increase of banking activities in such larger magnitudes in Europe focused on the inception of the ‘Banking Revolution’ in the continent. Financial system in the context of Britain was more crowded with broking and groups of merchant bankers. These financial groups financed on a large scale the trade activities pertaining to international context and also looked forward in issuing securities related to foreign transactions. During the middle of 1800 AD the advent of credit lending institutions earned dominance in countries like France and Belgium. These institutions were observed to finance infrastructural parameters like transportation which in turn catered to the development of industrial activities. The latter half of the 1900 AD also reflected the influence of the private stock holding banks on the board of directors in managing the affairs of the company. Moreover, the advent of an open market economy system helped the countries like Great Britain, and other European nations like Switzerland, Germany and Denmark. These countries were enabled by the system of free trade to market their products in the global sphere on a large scale. The dominance of Britain in the sphere of international trade was contested by countries like United States and Germany. (Crouzet, 127-130, 134) The Commercial Revolution gained further ground after the 1800 AD with the advent of the food and media industry. The media industry in United States during the period between 1820 and 1830 mainly catered to the publication of journals which were related to political events. It was observed that the newspaper production houses during the period of 1900 AD dramatically changed in incorporating a plethora of events ranging from politics, to sports and even published other general news together with comical and fictional stories. Thus, the newspaper industry gained huge recognition in catering to the needs of different age and interest groups. The newspaper companies cited the event as a commercial revolution on their part as they became widely observed as newly emerging businessmen. The effect of the commercial revolution in the media sphere is also observed from the incidence of advertising media. Huge amount of industrialization practiced in the developed countries like United States rendered due impact to help the advertising industry emerge in full vigor. The growth of the advertising industry triggered the growth of commercialization in the American landscape as the media and press industry became increasingly dependent on the revenues generated from it. Large number of companies advertised through the newspapers to gather a large customer base. In return they rendered huge amounts to the publishing firms which acted as a source of revenue. The newspaper became increasingly observed as a marketing vehicle by the different companies in that it helped in the spreading of company and product information to a huge customer base. The newspapers on the other hand gained access to newer markets which also helped in enhancing their revenues. (Baldasty, 139-140).The impact of commercialization can also be observed greatly on the agricultural production of the Chinese region. The opening up of the world economy caused the integration of the Chinese economy with the external world market. Rapid commercialization created a deafening impact on the Chinese agricultural market. It was found that the price of the domestic food products started rising rapidly till the end of the 1920 period. Moreover, the rise in the cost of agricultural products also triggered changes in the price structure of the allied products. It is observed that the rise in the price of agricultural produce in the Chinese economy from the period of 1880 to 1920 AD also enhanced the price of cotton materials and products. More specifically it can be observed that the huge rise in prices for the agricultural products helped the Chinese farming population to derive huge income. The increase in the income level of the Chinese population helped them to get better access to increased consumer markets. Thus in total the commercial revolution in China enhanced the economic position of the country. Specialization of the labor force was also brought about by the commercial revolution as opportunities emerged other than agricultural markets. (Brandt, 8-9). The increased practice of commercialization is also observed in the context of the global food industry. It was observed that the rapid commercialization of the food industry brought about technological changes like the use of microwave ovens. The inception of the 1950 AD brought with it the rapid use of microwave ovens in the food market. Moreover, by the close of the 1984 period the food industry became closely associated with the use of microwave ovens. Commercialization in the food industry thus also augmented the sale of the microwave ovens during the period from 1976 to 1986. (Bogdal & Prociak, 257-258). Conclusion The current industrial landscape of both the developed and developing nations is being increasingly flooded by the advent of technological development in the information sphere. Huge amount of innovations go on being incorporated in the field of information technology to further enhance the scope of internet and other web activities on a global sphere. In fact, the amount of technological development brought about in the field of information technology has led to the inception of the concept of ‘Information Revolution’. Wider activities taken in the field of developing the information technology rendered huge influence on the social and economic parameters of different countries. It has helped to bring the world closer to form a global village where they can easily carry on their trade activities and gain large number of customers. (“Information Revolution Vs. Industrial Revolution-Locating Revolutions, Technology, Economics, Social Relations, Work, and Demographics, Continuing Debates”). Industrial revolution which started in United Kingdom during 1700 AD had caused the economies and social parameters of many regions to get altered. The wider coverage of industrial revolution triggered the growth of commercial revolution where economic parameters of different nations countered a paradigm shift from agricultural to industrial base. Commercial revolution also led to the development of economic sphere of the nations through the development of banks, credit institutions and stock and merchant firms. Technological revolution gained huge growth for the increased use of machines and powers which helped in the production in mass quantities. However, the present day severely contests the industrial revolution through the advance of information technology which is revolutionizing the global economic and social sphere. Works Cited 1. “Commercial/Industrial Societies”, des.ucdavis, n.d. December 17, 2010 from: 2. “The Commercial Revolution”, Hawaii, n.d. December 17, 2010 from: 3. Knowles, Lilian Charlotte Anne. The Industrial and Commercial Revolutions in Great Britain During the Nineteenth Century. London: Taylor & Francis, 2005. 4. Peoples James & Garrick Bailey. Humanity: An Introduction to Cultural Anthropology. New York: Cengage Learning, 2008. 5. “Industrial Revolution”, n.d. December 17, 2010 from 6. Hackett, Lewiss. “Industrial Revolution”, 1992. December 17, 2010 from http://history-world.org/Industrial%20Intro.htm 7. Ooi, G. Keat. Southeast Asia: a historical encyclopedia, from Angkor Wat to East Timor. ABC-CLIO, 2004. 8. Maddison, Angus. Contours of the world economy, 1-2030 AD: essays in macro-economic history. Oxford University Press, 2007. 9. Kreis, Steven. “The Origins of the Industrial Revolution in England”. 2001, December 17, 2010 from 10. “History of the Industrial Revolution”, historyworld.net. n.d. December 17, 2010 from 11. “Technology User Profile-Top 10 Technology States Profile Report”, metafacts.com. n.d, December 17, 2010 from 12. Crouzet, Francois. A history of the European economy, 1000-2000. University of Virginia Press, 2001. 13. Baldasty, J. Gerald. The commercialization of news in the nineteenth century. Univ of Wisconsin Press, 1992. 14. Brandt, Loren. Commercialization and agricultural development: central and eastern China, 1870-1937. Cambridge University Press, 1989. 15. Bogdal, Dariusz & Aleksander Prociak. Microwave-enhanced polymer chemistry and technology. John Wiley and Sons, 2007. 16. “Information Revolution Vs. Industrial Revolution-Locating Revolutions, Technology, Economics, Social Relations, Work, and Demographics, Continuing Debates”, ecommerce.hostip.info. 2010. December 17, 2010 from: . Read More