Economies {subsistence economy}| can depend on families or small communities, which produce and consume only their own products.
After feudalism, European countries tried to start colonies, acquire gold and silver, mine minerals, build commercial and military navies, and industrialize {mercantilism}|. Objective was positive trade balance.
Developing nations often have poor markets, poor distribution systems, and high underemployment; export resources but not finished goods; need imports but have no cash to pay for them; and have low taxes, few schools, small wealthy class, no middle class, low investment rate, untrained business class, and poor agricultural techniques. Developing countries need capital goods and investment to change these problems {transition economy}| and become developed countries.
Modern economic production depends on machines and large-scale output {industrialization}|. Industrialization makes cheaper goods and leads to higher population, and so causes more industrialization. Developing-society industrialization separates people into groups that work and groups that are traditional.
Meeting current economic needs responsibly {sustainable development}| can allow future generations to meet their economic needs. Wealth per capita can increase at optimum rate. Wealth is capital, natural resources, knowledge, skill, and organizations, but income includes only goods and services value.
6-Economics-Macroeconomics-Economy
Outline of Knowledge Database Home Page
Description of Outline of Knowledge Database
Date Modified: 2022.0225