2. Overview
Feudalism
Mercantilism
Capitalism
Commerce
Property Rights
The Industrial Revolution
3. Feudalism
One of the oldest
business schemes
Middle Ages 500-1500
The king had complete
control
4. Mercantilism
Exported one country’s
goods for another country’s
gold
International trading
locations
Monarchs and Aristocrats
5. Capitalism
Economy to grow
exponentially
Greater demand on labor
Capitalists- Rockefeller and
Carnegie
Class systems
Trade and distribution of
products
6. Commerce
Barter to money
Money to capital
Sales and purchases
Supplying goods and services
7. Property Rights
Land- Buildings and structures on it
Labor- The right to work freely
Enterprise- The products such as patents and
copyrights to the product
Capital- The rights to financial assets. Ex.
Stocks, bonds, money
8. The Industrial Revolution
Started in the late 18th
century
It spread to the United
States during the 19th
century
Provided new opportunities
for capital
Shifted production and
trade
9. Summary
The Evolution of Business has a
history and we still use the terms
today. As the start of Feudalism it
transitions from one stage to another.
10. References
Axia College. (2007). The Evolution of
Business. Retrieved from Axia College, BUS210
week 2
Commerce. (n.d.). In Wikipedia. Retrieved from
http://en.wikipedia.org/wiki/Commerce
Webster, 2002
Notas del editor
My name is Jessica Batten and I am going to explaining the Evolution of Business starting from feudalism to the industrial revolution.
The revolution of business has gone through several different stages of evolution starting from feudalism to the industrial revolution. In the following presentation each stage will be discussed.
“ Feudalism is the business or economic system in which one class of people (aristocrats) control the property rights to all valuable resources, including people” (Axia College, 2007, p. 40). Feudalism was a simple system that allowed the king almost complete control of all land. The land was divided up into portions among the church, baron, knights and serfs. The largest portion of the land was kept by the king as his personal asset. By granting these groups such an extravagant gift, the king ensured himself a heft return in good, gold, servants and power. Many business systems today follow the same idea as the feudalism system. There are large corporations, or parent companies who create small businesses that they delegate other professional minds to control in return for a profit.
“ Mercantilism is part of the business system in which a product’s price differences are exploited by trading the product across markets and countries” (Axia College, 2007, p.45). During the sixteenth to eighteenth centuries, Western Europe developed this system. This term is defined by Adam Smith that describes an arrangement in which exportation is increased in return for the accumulation of valuable metals.
“ Capitalism is the economic or business system in which the private ownership of resources becomes the basis for the production and distribution of goods and services” (Axia College, 2007, p. 51). Capitalism became one of the leading forms of business in America.
Throughout the history and evolution of business, the most obvious and consistent focus has been commerce. The constant exchange for gold and “dealings between individuals or groups in society: interchange of ideas, opinions, or sentiments” Webster (2002) is what has and will continue to shape the world of business, around the globe, for centuries. According to Wikipedia (n.d.), today’s commerce includes a system of companies who try to maximize their profits by offering products and services to the market at the lowest production cost.
“ Property rights are the claims by people to own, use, or sell valuable resources” (Axia College, 2007, p.39). In today’s society property rights do not only pertain to land. Property rights were a large part of how feudalism worked. The king had exclusive property rights; meaning he had full authority to decide how that land was to be used. As his land was gifted to the nobles, knights, etc. those rights were passed along with it.
“ An era in the eighteenth and nineteenth centuries that marked improved production and trade brought about my advances in technology” (Axia College, 2007, p. 48). As the eighteenth century came about, the era known as the Industrial Revolution became the foundation for development in business and invention. It started with the invention of the steam engine, and would become the age of mechanization.
In today’s society the Evolution of Business has expanded but has also followed the same route back in the Middle Ages. Business in today’s society is buying and selling of goods, especially on a large scale between cities or nations. For instance, if we look at all the goods, products, clothing, etc. that we get from China. We purchase them because it is cheaper for us to get the items from there rather than making them here in the United States. The Evolution of Business I feel will grow as the time progresses.
