Contemporary World dangerous conditions at the factories for low wages. However, labor unions was formed in DEFINITION OF TERMS the late 19th Century in order to improve wages and working Market conditions through collective action, Refers to an institutional structure that strikes, and negotiations. permits people and organizations to Labour unions gave way for minimum exchange good, services, and labor. wage laws, reasonable working Global Market hours, and regulations to protect the Refers to all the people in all areas of the safety of the workers. world who buy or might want to buy something. (Cambridge Dictionary) TWO ECONOMIC MODELS ARISED DURING It is not limited to specific geographic INDUSTRIAL REVOLUTION locations but rather involves the exchange of good, services, and labor anywhere in the These models sprung up during this period as world. economic capital became more and more important Integrate to the production of goods. The act of combining two or more things to 1. Capitalism make something more effective. (Cambridge Refers to a system in which all natural Dictionary) resources and means of production Global Market Integration are privately owned. Refers to the price differences between Emphasizes profit maximization and countries are eliminated as all markets competition as the main drivers of become one. efficiency. 2. Socialism HISTORY OF GLOBAL MARKET INTEGRATION Refers to a system in which the means of production are under 1. Agricultural Revolution collective ownership. It rejects Refers to the period where the first capitalism’s private property. big economic change happened, In this system, the property is owned where there was an unprecedented by the government and allocated to increase in agricultural production. all citizens, not only those with the People learned how to domesticate money to afford it. plants and animals, and realized that This system emphasizes collective it was much more productive than goals. hunter-gatherer societies. This revolution led to major TWO CLASSIFICATIONS OF LABOR MARKET developments like permanent JOBS settlements, trade networks, and 1. Primary Labor Market population growth. Refers to the jobs that provide many 2. Industrial Revolution benefits to workers, like high The second major economic incomes, job security, health revolution that transformed largely insurance, and retirement packages. rural, agrarian societies into 2. Secondary Labor Market industrialized and urban ones. Refers to the jobs that provide fewer Where factories popped up and benefits and include lower-skilled changed how work functioned. jobs and lower-lever service sector People began working as wage jobs. laborers and then becoming more These jobs tend to pay less, have specialized in their skills. more unpredictable schedules, and This period led the people have typically do not offer benefits like access to a wider variety of goods health insurance. due to mass production. 3. Information Revolution Refers to the period of change where technology has reduced the role of human labor and shifted it from a manufacturing-based economy. Computers and other technologies are beginning to replace many jobs because of automation or outsourcing jobs offshore. ECONOMIC CASUALTIES DURING INDUSTRIAL REVOLUTION