HISTORIES of IB

Historically in five centuries IB profoundly influenced the happiness of mankind accelerated the pace of complexity of human lives and widened the gaps between poor and rich countries. Search for trade routes discoveries - new continents economic as well as trade growth sharing of resources, knowledge, ideas, methods, technologies, culture, and civilizations. IB witnessed a highly dynamic process that evolved with the (a) political evolutions and economic revolutions, and (b) waves of technological innovation.

HISTORIES of IB Cont.
Historically the international business growth and development can be grouped into six important periods: A. Ancient and Medieval Era, Pre-history- 500 AD Ancient Period up to 1000 BC Greek Period (1000 - 200 BC) Roman Period (200BC 500 AD) Others including The Dark Age for Business (500 to1400 AD) B. Commercial Capitalism Era, 1400 - 1770 C. Industrial Capitalism Era, 1770 - 1870 D. Monopoly Capitalism Era, 1870 - 1914 E. Wars and Depression Era, 1914 - 1945 F. Modern Era, 1945 to date

A. Ancient and Medieval Era

Egyptian, Assyrians, Persians, Hebrews, and Phoenicians are the founders of commercial practices around the Black Sea, the Mediterranean Sea and African Coasts. Greek Timber for human welfare. Roman Trade development and military power through a system of taxation. Chinese and Indian: The Art, politics, agriculture, industry and other sectors were profoundly influenced by the ideas of luxuries and comfort through international trades. However, The dark age for business began with global epidemics (worst natural disasters) of the Plague that travelled from East to West in ships killed one-fourth of Chinese and one-third of the Europeans (Black Death in 1348). Dynamic Driving Forces: Ancient routes, small ships, boats, canoes; Trade representatives; Written/oral communication; Challenges: risk, fear, hardship and uncertainties; Increase in agricultural and industrial production in China; Silk Road Britain to China (via Mediterranean, North Africa, Central Asia, and Indian Ocean regions).

B. Commercial Capitalism Era 1400-1770 AD

Capital was invested in commercial enterprises and merchants organized joint stock companies and secured royal charters receiving trade monopolies and colonization privileges in overseas territories largely to the Americas. Spanish: Columbus travelled (1492) and discovered America. Spaniards focused on imports of bullions from and export of manufactured products to US, Central and South American countries. Portuguese: Vasgo da Gama found India and Africa (1498). Imported raw materials from India and Africa for industries in Portugal. Several wars were fought over trade routes and British and French owned many and started trading with several regions. In 1600 British East India Company began setting branches in Asia. In 1602 the Dutch East India Co. was formed and worked abroad. Mercantilists grew with government support and formed modern basis and regulations of international business development and accumulated wealth through trade surplus for national power and unity. Dynamic Driving Forces:

B. Commercial Capitalism Era 1400-1770 AD

Dynamic Driving Forces: Navigation, ships, boats, canoes, oceans and rivers. Geographical discoveries. Rise of trade, profit, price, and saving; decrease in costs. Growth of stock-exchange and commodity markets. 1625 Dr.Hugo Grotius published on The Laws of War and Peace. Innovations: iron, water power, textile, mechanization, commerce on necessities, etc. 1687 Newtons law of Gravity 1694, The Bank of England 1698 Esteem Engine 1750 Electricity, B. Franklin

C. Industrial Capitalism Era 1770 - 1870 AD

British, Spanish, Portuguese, French and Dutch: Overseas profits of mercantilists contributed to the advent of the industrial revolution first in England and later on in other countries in Europe. European Industries exported manufactured goods in return for raw materials from the Third World. British firms were no longer interested in charter and monopoly over the colonial states. As they had almost monopolized the world market and they were interested to promote concept of free trade and profit without a hassle of ruling a state.

Dynamic Driving Forces:

Navigation, insurance, banking, and communication. Economic expansion; growth of agriculture and industries. Innovation and Introduction: Trans-Atlantic Cable network (1866), Steam Power, Steel and Cotton.

D. Monopoly Capitalism Era 1870 - 1914 AD

Colonial Imperialism was revived and strengthened. It reflected the increase in economic and military powers. Europe, India, China, USA, Japan, Canada and South Korea: World economic growth was gradually intensified with the agricultural / industrial revolutions. Giant monopolistic companies - multinationals replaced the formerly independent and competitive independent firms. Newly industrialized nations challenged British lead in industry, finance and world trade. Free-trade imperialism was abandoned in favour of revived colonial imperialism. Handful of European powers literally divided the global market (except Japan) among themselves as colonies and strengthened them as a global system.

Dynamic Driving Forces:

Infrastructures: Suez (1869) and Panama (1914) cannels; shrinking world with high speed transportation and communication Systems and other technologies; Innovations: rail-roads, chemicals, petro-chemicals, aviations, electricity, engine, etc

E. Wars and Depression Era 1914 - 1944 AD

Another Dark Age of Business started with the advent of the World War I, the Great Depression of 1930s and the World War II.

Dynamic Driving Forces:

Innovations: electronic, space, ICT, TV, etc.

E. Modern Business Era 1945 to date

Defensive Monopoly Capitalist Developed. Neo-colonialism ceded independence to many colonial countries. Western countries could retain economic control as the multinational corporations also continued to play an important role. Many multilateral institutions like, UN, WB and IMF (Bretton Wood), GATT /WTO etc. were set up. Although rivalries among the US, Europe and Japan existed and internal conflict within them mounted, global organizations were able to establish international diplomatic norms. Regional blocks were formed for economic cooperation and further trade and industrial development through liberalization.

E. Modern Business Era 1945 to date cont

Dynamic Driving Forces:

Demographics features: market, income, employment, and consumption growth; Mass production at reduced costs, and new technology; Revolution in ICT, evolution of digital, biochemistry, etc. Multilateral and regional institutions Innovation: digital network, renewal energy, green chemistry.