Modern Age: Transformations, Economy, and Globalization
Modern Age: From Discovery to Globalization
The Modern Age is the historical period from the end of the Middle Ages until the Contemporary Age, spanning from the discovery of America and the fall of Constantinople until the French Revolution.
Subperiods
- 16th Century: Renaissance
- 17th Century: Baroque
- 18th Century: Absolutism
Main Changes
- End of the Byzantine Empire by the Turks
- Geographical discoveries in Africa, America, and Asia
Portuguese Expeditions (15th Century)
A Portuguese prince named Henry promoted the development of sailing and the exploration of Africa. There was a very strong rivalry with Castile.
Castilian Expeditions
Christopher Columbus, supposedly born in Genoa, knew the Earth was round. He wanted to sail west across the Atlantic Ocean to reach India.
Economic Activity
Economic activity refers to the actions people undertake to organize the production, distribution, and consumption of goods. It addresses the basic problem of covering human needs by using limited goods.
A good, in economics, possesses two characteristics:
- It is limited, so people are willing to pay for it.
- It is necessary to cover human needs.
Production
Production is the set of goods produced by economic activity. To produce goods, we use natural resources and human resources.
Production Factors
Production factors provide humans with the necessary resources to produce goods and services to cover their needs.
Distribution and Consumption
Distribution and consumption encompass the activities involved in transporting goods from the place of production to the place of sale.
Economic Agents: Private and Public
Because human needs are unlimited, it is important to organize the production and distribution of goods.
Private Agents
Private agents consist of companies and families.
- Companies: They are the basic units of production. Their function is producing, distributing, and selling goods.
- Families: They are the basic units of consumption. Their function is obtaining goods and services to cover their needs. Families represent the demand for goods and services.
Public Agents
The main public agent of the economy is the state. The state’s objective is to offer services to the largest number of people.
Economic Systems
Economic systems are the ways to organize and carry out economic activity. The main economic systems are socialism and capitalism.
- In a socialist system, the economy is organized by the state.
- In a capitalist system, economic activity is regulated by the market itself.
Globalization
Since 1990, neoliberal policies and the search for maximum profit have led the economy into a new process called globalization. This process consists of the integration of national economies on a worldwide scale.
Reasons for Globalization
- Progress in telecommunications, providing real-time information and facilitating contact.
- Improvements in transportation.
- Institutions that promote the global economy.
How Globalization Affects Economic Activity
- Production is planned on a worldwide scale.
- Consumption has become more uniform.
Geo-economic Regions
The Triad Countries:
- A small part of their production is agriculture.
- Their agriculture is highly mechanized.
Emerging Countries:
- They are in the process of rapid economic growth.
- They play an important role in the world today.
Labor Market
Work is the effort made by people to produce wealth. Work is important for companies to produce goods and services, and it is also important for workers.
Population Groups
The population can be divided into two groups:
Active Population: People who:
- Have paid work because they provide their labor.
- Are available to join the labor market but are not currently working.
Inactive Population: People who do not have a job and are not available to join the labor market.