In the pre-historic era, cattle were generally used in exchange for goods, other products, and daily necessities. Over the years, after the industrial revolution began to take over the ancient world, the concept of currency began to rise. However, until modernization and the industrial revolution, the world’s average GDP was 158$ per annum.
In the 3rd century BC, Ancient Egypt was home to most people in the world, and it had the highest gross population, which helped the country develop in terms of trade, market, and economy in general. The concept of money was developed by Babylonians, using a metric system to exchange commodities under a fixed legal code. These legal codes were the first financial law practices that were put forth by ancient humans, which have developed into the economic world we live in today. The exchange of gold and silver coins began around 650-600BC by scholars, Lydians, etc.
The strategic rise of economic evolution in the world
Eventually, China and India became hubs for economic development, accounting for more than half of the world’s economic growth in the next 1500 years. However, although their GDPs were high, their per capita GDP saw a gradual downfall due to the increase in population density.
Europe was under economic backwater in the early days of the middle ages. However, at the start of the medieval period, Europe started trading goods with prosperous cities and counties, leading to economic improvement.
Economic growth saw a different turn of events. It gained a new direction in Britain and other parts of Europe, during the industrial revolution, due to their high demand for energy consumption. The linear growth in the industrial revolution across all countries led to massive growth in per capita GDP. This growth revolutionized trade and also improved international relations.
The Paleolithic era was between 500,00 BC to 10,000 BC. Economic trade and resources were minimal during this era, which happened over ecosystem factors like fauna and flora, climate, etc. During this time, ancient people adapted to changing environments, and the population increased from 1 to 15 million.
This period emerged over 100,000 years ago and marked the first step in domesticating animals and plants for personal and commercial use. People started settling in communities and places in different regions.
In this era, people were interested in specializing in skills within their environment. The idea of necessary trade also increased during this time. Agriculture also increased in America, south, and East Asia during this time.
It was the era of reformat when the Roman Empire became the largest empire in the ancient world, with up to 90 million inhabitants. India and china also joined the suit in enhancing population and increasing GDP.
Early modern era
This was when international trade, mercantilism, and other opportunities opened doors in the new world and Asia. Economic theory and political movements were also advocated in the year, with the introduction of the first banknote in Europe.