Multinationals and Societies

Question of the week 2 :
Compare and contrast pre-industrial, industrial and post-industrial societies. Discuss the implications for multinationals of these three types of economies.

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Introduction
•  As societies get richer, “people’s horizons expand and new wants and tastes develop”. D.Bell
Chronological marks Before 1850 1870 to 1960 1965 to present Economy focus Primary sector Secondary sector Tertiary sector Society type Pre-industrial Industrial Post industrial

•  New demand, new needs ➤ New multinationals
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Plan
I.  Three Societies 1) Pre-industrial 2) Industrial 3) Post-industrial 4) Comparison II.  Implications for multinationals 1) In the pre-industrial society 2) In the industrial society 3) In the post-industrial society

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I. Three Societies

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1) Pre-industrial society
•  Agricultural dominance, shaping of the economic environment •  Main resources – land •  Rule – landlords, soldiers •  Energy revolution – light industry (textile industry) machine instead of manual

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2) Industrial society
•  Dominance of the secondary or manufacturing sectors •  Light industry and Heavy industry •  Start a lot of trade, has the business city •  Transportation gradually developed – highway, carriage industry, railway
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3) Post-industrial society
•  Emphasis on the service sectors •  Product production economic to service – oriented economy •  Professional and technical personnel in the dominant position •  Knowledge becomes a source of innovation
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4) Comparison
Differences Features: •  The pre-industrial society; primary economic sector occupations. •  The industrial society; secondary sector and human-machine relationship. •  The post-industrial society; services sector and professional and technical occupation.

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Product types
•  The pre-industrial society; merchandized industry has replaced handicraft industry (Spinning Jenny, Steam engine). •  The industrial society; scientific technology is developed... [continues]

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