Question

Write Short notes on the following:
Evolution of Business ?

Answer 1

The evolution of business means how the development takes place in business. The development in business activities in India has been going on with the changes in civilization. There was a time when there was no commerce at all and now its development brought all world together. Different stages through which the development of trade and industry has passed are as follows:-

1. Barter system:- Barter system is a system of exchange of goods for goods. The surplus was exchanged with those goods which they needed. At a later stage, some places were fixed where people used to come for exchanging their surplus products with others.
2. Introduction of money:- There was a requirement of time common medium of exchange, the commodities like stones, shells, cattle, etc were used to value the goods to be exchanged. Gradually, metals like irons, copper, bronze, silver, and gold were taken as a medium of exchange. The coins were also used for this purpose. It was ultimately the use of paper currency which led to all-round development of business activities.
3. Town economy:- With the use of money for exchange purposes, the volume of trade started increasing. There used to be weekly mandis or fairs where people from nearby villages would come to sell their surplus produces and buy goods for their needs. The increased volume of traders and artisans come into existence. The person started selling at control places and established their business premises there. These places were known as towns and become trade centers for people living in villages.
4. Industrial Revolution:- The word 'Industrial revolution' is used to describe a series of changes in the industrial field in England during the period between 1760 and 1850. A number of inventions took place in England and this changed the entire technique of production. The machinery was used for production, division of labor was introduced and the modes of transport were improved.
5. Revolution in transport and communication:- The discovery of new sea routed opening of Suez canal, Introduction of railways, stem strips, aeroplane, and automobile revolutionized transport system. The movement of grade from among different countries become easy and fast. The trade cropped national boundaries. The use of telephone, telegraph, radio, T.V. etc has helped in creating world market for goods. The latest edition of Internet and e-commerce has changed the structure of trade and commerce.
6. Advancement in modern business :- A number of advancement have occured in commerce and industry in the last fifty years. These change were:-

a. Improved method of production

b. Large-scale production.

c. Specialisation

d. Research and development

e. Expansion of International trade.