The technological innovations of the Industrial Revolution led to economic revolutions as trade increased, and spread faster than ever. New ideas in economics as well as new affordability of products led to increases in standards of living.

Historical Developments in Unit 5.7 Economic Developments and Innovations in the Industrial Age

• Western European countries began abandoning mercantilism and adopting free trade policies, partly in response to the growing acceptance of Adam Smith's theories of laissez-faire capitalism and free markets.

• The global nation of trade and production contributed to the proliferation of large-scale transnational businesses that relied on new practices in banking and finance.

• The development of industrial capitalism led to increased standards of living for some, and to continued improvement in manufacturing methods the increased the availability, affordability, and variety of consumer goods.

Maps & Visuals 5.7

Additional Resources 5.7