Question

What do you see as the critical elements of the Market Revolution? What made this economic growth possible?

Answer 1

Market Revolution

Market Revolution can be defined as the fundamental transformation of economy primarily due to the widespread mechanisation of industry and the expansion of various economic markets both domestic and foreign.

Market revolution which occurred in the 19 th century in United States transformed American business into global trade.Mass production increasingly displaced independent artisans.Farm produced goods were produced for distant markets and not to the local markets.It gave rise to explosive economic growth and new personal wealth.Market revolution resulted in large scale domestic manufacturing,trade within the United States increased and dependence on foreign imports declined .

The three critical elements of market revolution are as follows:

1.Technological advancement in Transportation :

In the early 19 th century many technological improvements has taken place in the transportation business.The advent of mechanizsd transportation such as railroads and steamboats increases which made easy to transport goods to distant place and thus created new markets for the goods produced.

2.Inventions and Innovations in the production of goods:

Latest technology were used in the production of goods.Advanced machines were introduced in the production of goods which resulted in mass production which ultimately reduced the cost of production.Goods were produced on large scale which resulted in large scale procurement of raw materials and supplies which resulted in low production cost.

3.New forms of Communication:

The communication revolution in the early 1800's in the United States was considered as one of the factor for market revolution.The telegraph system were used to exchange information made it easy to communicate information to distant places.The information regarding new markets were available within a short period through telegraph system.

Therefore, we can say that new technology and inventions and new ideas of the people gave rise to new markets and this helped the economy to flourish to distant places thus creating demand by new consumers.Thus, this helped in the overall development of economy of the country.