| I. Introduction | | | | in which industry and manufacturing was in control. |
| The history of modern American economy traces its | | | | The biggest advancement in technology was the use |
| roots in the 16th century when migrants from Europe | | | | of steam power. This revolutionized industries like |
| came to settle in the country. At that time, the | | | | textiles and manufacturing. Also, the invention of the |
| nation was inhabited by Native Americans -- | | | | telegraph made communication much faster. The |
| indigenous peoples who were recognized according to | | | | onset of the production era signaled the end of the |
| tribes. Prior to the arrival of European settlers, tribes | | | | industrial revolution. The new era saw many |
| traded among themselves. | | | | companies looking at ways to reduce the cost of |
| | | | production. Companies thought then that lowering |
| II. Bartering | | | | manufacturing costs would lead to lower prices of |
| The beginnings of business in America are closely | | | | products. This concept was fueled by such |
| intertwined with the early practice of barter. In its | | | | milestones as the invention of the assembly line and |
| early history, the United States was a collection of | | | | more efficient work principles (Haber, 1964). |
| colonies where the absence of a common currency | | | | These two innovations made businesses aware that |
| led to the use of all sorts of substitutes, e.g. tobacco | | | | mass production resulted in lesser costs of production |
| and wampum, as money. | | | | and greater profits. Unfortunately, unstable economic |
| Barter took many forms then. Among these were | | | | conditions brought about by the Great Depression |
| the potlatch ceremonies of Native Americans that | | | | caused many companies to fail even though they had |
| had economic functions entwined with social and | | | | adopted mass production techniques. |
| ceremonial significance. A potlatch is usually a | | | | IV. From the Marketing Era to today's business world |
| ceremony involving music, dance, and spiritual rituals. | | | | Contrary to the fears of the general public, the end |
| The host gives away his resources gathered for the | | | | of World War II saw pent-up consumer demand |
| event, which in turn the guests give in return when | | | | fueling strong economic growth in the postwar |
| they hold their own potlatches. | | | | period. Several industries grew tremendously during |
| Barter also took the form of traditional native | | | | this period - the automobile industry, aviation and |
| currencies such as furs and wampum which were | | | | electronics to name a few. A housing boom added to |
| essential for frontier trading with the indigenous | | | | the expansion. |
| population. Wampum, made out of the shells of a | | | | The postwar economic aid to European countries |
| type of clam, was best known form of money | | | | under the Marshall Plan also helped maintain markets |
| among Native Americans. Wampum's use as money | | | | for numerous U.S. goods. In the 1980s, rapid |
| came as a result of its desirability for ornamentation | | | | developments in technology impacted the economy. |
| purposes. | | | | The personal computer, hand-held mobile phones, and |
| Among the early documented use of wampum points | | | | new audio and data storage technologies greatly |
| to 1664 when colonist Peter Stuyvesant arranged a | | | | influenced business. But the greatest impact would |
| loan in wampum for the payment of the wages of | | | | come with the emergence of the Internet. |
| workers constructing the New York citadel (page | | | | The impact of the Internet on business is as far |
| 458). Other commodities that were commonly traded | | | | reaching as its impact on an individual's way of life. |
| included tobacco, rice, indigo, wheat, maize, etc. | | | | Today, the Internet is a fundamental component in |
| III. From the Industrial Revolution to the Production | | | | determining both strategy and business design. This |
| Era | | | | technology enables businesses to reach across and |
| As colonies and settlements grew, industries became | | | | beyond traditional boundaries and create new sources |
| more developed. The introduction and use of | | | | of profit. |
| machineries in production ushered in the Industrial | | | | V. Conclusion |
| Revolution. The Industrial Revolution changed the | | | | The history of business in the United States is a |
| ways by how American businesses produced their | | | | reflection of the country's evolution from a simple |
| goods. The introduction of much new technological | | | | economy to being the most powerful country in the |
| advancement led to greater and faster production of | | | | world. To say that business had little or no influence |
| goods. The onset of greater productivity led to | | | | in the attainment of that status would be to deny |
| unprecedented economic growth to a budding nation. | | | | the very history of America. Indeed, the country |
| The Industrial Revolution basically changed the | | | | was founded on democratic principles, but it grew |
| country from a mainly agricultural society to one that | | | | and developed, no doubt, because of business. |