Posted in Finance, Accounting and Economics Terms, Total Reads: 467
Industrialization is a systematic process of production that arises from development, study and advancement in science. It may also refer to the change in methodology of industry and economic activities in a previously under-developed economic region.
Industrialization is often characterized by following features:
• Replacement of manual labor by automated mass production
• Replacement of individual laborers by assembly lines
• Usage of technological innovations to solve problems
• Efficient division of labor
• Economic growth
Generally associated with European Industrial Revolution of late eighteenth and early nineteenth century, Industrialization is more prominently evident in the beginning of the Second World War. This resulted in development of urban centers, and the rise of suburbs. Industrialization is said to have many implications on the economic lives of the people in that area – higher average incomes, lower cost of supplies, among others.
The following image shows the effect of industrialization in various nations – GDP per capita at purchasing power parity since 1500s.