Industrialization and it’s impact on world economy, Industrialization can simply defined as the process of transforming economy based on extractive activities based on manufacturing. In other words, industrialization refers to the process by an economy based on agriculture, lumbering, mining etc is transformed based on industries.
Industrialization refers to the process of transforming an economy from primarily agricultural and manual labour-based to one that is dominated by mechanized manufacturing and production. It involves the extensive use of machinery, technology, and division of labour to increase productivity and output.
Historically, industrialization began in the late 18th century with the Industrial Revolution in Europe and later spread to other parts of the world. It marked a significant shift from traditional, agrarian societies to modern, urbanized ones. Key developments during this period included the invention of steam power, the mechanization of textile production, the use of iron and steel in construction and manufacturing, and the development of transportation infrastructure such as railways.
Industrialization brought about profound social, economic, and technological changes. It led to the growth of cities and urban areas as people moved from rural areas to work in factories. The factory system emerged, where goods were produced on a large scale using machinery and assembly lines. This mass production led to increased efficiency and lower costs, making products more affordable and accessible to a wider population.
Industrialization also had a significant impact on society. It created new social cla
Industrialization requires the establishment of many firms which are of producing goods and services.
ROLE OF INDUSTRIALIZATION IN THE ECONOMIC DEVELOPMENT OF A NATION
Industrialization or the industrial sector contributes greatly to the economic development of nations in the following way
155. TRYPONOSOMIASIS
- Increase in gross national product (GNP): The industrial sector, through its operations like payment of taxes, increases the earning accruable to the nation.
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- Employment opportunities: Industries provide employment (job) for many people.
- In international trade, it improves trade balance: Most of the products of manufacturing industries like machinery are usually imported from western nations. This forms the basis for international trade and improves trade balance between countries
- Stimulation of other sectors: The industrial sector stimulates the growth of other sectors like agriculture, mining and lumbering.
Control of inflation due to mass production: With modem technology, products like car and machinery can be mass produced. This can help to reduce inflation
- Technological development: Industrialization can also lead to the development of technology in the country.
- Infrastructural development: The establishment of an industry in a place stimulates the development of infrastructural facilities like roads, telephones, electricity and pipe-borne water.
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- Diversification of the economy: The industrial sector helps different countries to prevent over-dependence on only one product like Nigeria’s present over-dependence on crude oil. If Nigeria can invest in the industrial sector, her economy will in time be diversified
- Training and development of skilled manpower: Many people are trained in different technical areas in order to acquire special skills to manage different aspects or machines in an industry. Owing to industrial development, many people are given such skill training.
- Funding of education and research: The industrial sector provides capital for the funding of education and research work in all nations, e.g. the Education Tax Fund (ETF) in Nigeria.
- Conservation of foreign exchange: Industrialization has led to the conservation of foreign exchange which would have been used for importing goods now produced locally.
- Improving the standard of living: Industrialization also leads to the improvement or raising of the standard of living of the people through the production of goods that are cheap and affordable.
