Goucher and Walton (2007) introduce the chapter by indicating that Agrarian economies were centered on farming. As a matter of fact, it was during the colonial period that the agrarian economies existed. Countries were economically known by the type of crop that they produced. It is due to this that America was well renowned for being an agrarian economy centered on tobacco and cotton (Goucher and Walton, 2007). The word, agrarian, which was retrieved from Latin word basically means field. Main activities for the world economies during this time were concentrated in the fields where the people farmed the land for arable crops. The colonial America was known as the dominant agrarian economy during this period that was pre industrial. The extent of farming was to a large extent that the crop produce was not only used by the locals for food purposes but they also used the crops as an exchange commodity. The colonial America became a common supplier of maize, tobacco and cotton to the European market. It is also right to recognize that during this period of time, the agrarian economies had the citizens mainly concentrating on farming as the primary activity (Goucher and Walton, 2007). The economy was therefore driven explicitly by agriculture.
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During the period between the late 1700 and early in the 1800 years, the globe had a transition that was to change the whole global economy for a better course. The industrial revolution was experienced during these periods in time and the whole globe was transiting from the agricultural economy to the industrial economy. Railways, machines powered by steam and the electrical power that generated later were used to actively propel the progress in technology and the economy in general (Goucher and Walton, 2007). It is during this exact period in time that the world economy was also being introduced to the modern capitalist economy. It is actually due to this new dimension in the economy that the new economy introduced an era of economic growth that was being measured in terms of the per capita contributions. It is actually recorded that it was courtesy of this fact that the capitalist were rising so fast during this period of economic development. It is also during this period that the United States of America's economy began growing at a very rapid rate simply because it had heavily invested in the manufacturing industry. During this time, agriculture was hurriedly loosing ground as an economic activity especially in America where it had been clarified that agriculture was now accounting for a 1 per cent age of the economy (Goucher and Walton, 2007). In general, the rise of industries and the development of machines was the main brain behind the emergence of the industrial revolution.
The world economy then transformed slowly to the current information technology. As a matter of fact, a keen observation in the historical development f the leading economies like the United States of America today clearly reveals how much it quickly dropped off the manufacturing economy to the likes of Japan and China. Information economy is the most refined type of economy that is present today. It simply implies to an economic state that is currently ranking countries and states in terms of the information industry and the informational activities that it is responsible for. Information economy has also been successfully referred to as the knowledge economy or the post industrial economy (Goucher and Walton, 2007). The main reason as to why it is referred to in terms of the terms that have been indicated above is because the industrial economy was getting over and its exist had therefore to be recognized in naming the next economy. On the other hand, the work force in the information economy is mainly recognized or grouped in terms of the knowledge possessed.