Topic > Impact of the Industrial Revolution on International Trade

Before events unfolded in the 18th century, the interconnections of an increasingly global world roiled agrarian and rural societies. In particular, families had begun to produce surpluses and purchase new goods, which until then had been considered a luxury. This era of industrial revolution laid the foundation for the industrial revolution. Trade in this period towards Europe mainly involved spices from India, silk and porcelain from China and, despite the silver flowing in from the Americas, kept the balance in favor of the East. The need for capital and labor was not intense and mercantile activities were carried out mainly in the guilds. This essay attempts to understand the impact of the industrial revolution on trade. The 18th to 19th centuries, a period of industrial revolution, shows three distinct movements of trade, labor and capital within international exchanges, which can be best understood when viewed together. Trade: Traditionally, regions were self-sufficient in food in the 17th century, but as the population grew, demand in Europe increased accordingly, driving up food prices. Eventually, the Corn Laws were abolished, consequently leading to the importation of cheaper food, increasing its consumption. Therefore, food products, despite a greater mass proportion, have become the most significant item of exchange. The Americas with their plantation crops such as sugar cane, cotton, cocoa, coffee and bananas became the food basket for Europe. With industrialization the supply chain changed to add value to the product, as in the case of meat, until 1870, live animals were shipped from America and then slaughtered in Europe for consumption. Transportation costs have made meat an expensive food product, however... middle of paper... primary products from one place, secondary products from another place and tertiary products from elsewhere, thus profoundly changing world trade with growing polarization towards the free flow of labour, capital and goods. The separate commercial spheres were more interconnected and trade extended and affected the life of the common man, new businesses, services and sectors emerged. and fortunes grew. The new cities of Bristol, Bombay and Buenos Aires provided thriving neighborhoods for the bourgeoisie and advertising for new products became commonplace. All this eventually led to the division of labor in which some regions specialized in manufacturing and others in raw materials. . England, Europe and the United States were the main beneficiaries at the expense of the artisanal economies of India and China.