Feudalism• Aristocrats control the property rights to all valuable resources, including people.• Laborers began to receive more rights and rewards.• The system of tenant farming evolved.• The Hundred Years War,was fought in England.
Mercantilism• Products are traded across markets and countries• Merchants are traders who notice a difference between the value and price of a product in onemarket and its value and price in another.• From the time of the Phoenician traders onwards, there was a great deal of mercantilism between countries in the Middle East and Europe.
Capitalism• Private property rights the basis for the production, trade, and distribution of goods and services.• Capitalist has many negative overtones because of industrialists like Rockefeller and Carnegie.• Proletariat, the vast, faceless mass of laborers who worked for subsistence wages.• Trade unions and class systems developed.
Commerce• The hierarchy of authority evolved early to reduce the transaction costs surrounding business activity.• The joint-stock corporation evolved to make it easier for enterprising peopleto borrow capital.• Barter system led to a problem economists call the double coincidence of wants arises.
Property Rights• The claims by people to own, use, and sell the rights to valuable resources.• In earliest times, the claim to property rights was a matter of brute force.• Aristocrats had the incentive to enterprise ways to use the estates’ land and labor more profitably and increase their personal wealth and power.
The Industrial Revolution• The emergence of the steam engine was a crucial event.• The development of coal mining.• Affected both farming and manufacturing and led to a dramatic increase in the wealth and prosperity.• Constant wars isolated peoplemaking it difficult for them to learn about new innovations.
Conclusion• Business systems evolved from earliest times to feudalism, mercantilism, and then to capitalism.• People organized themselves into business systems to take control of productive resources and use them to create capital and wealth.• The way business as commerce, occupation, and organization evolved to allow land, labor, capital, and enterprise to be used more productively and profitably.
References• Jones, G. R. (2007). Introduction to business: How companies create value for people. New York,NY: McGraw-Hill/Irwin