Economic Systems
Changes in an economic system such as a shift from a centrally planned economy to a free market system.Politics
Political shifts such as the formation of the European Union that created the world's largest single market system in 1999.Economic Policy
Changes in economic policy such as the end of the gold standard and introduction of a system of pure fiat money initiated by the United States in 1971.Social Change
Social change such as the entry of more women into the workforce. This is a long term trend that accelerated after WWII in many countries.Demographics
Changes to the demographics of a nation such as an aging population.Legal
Legal changes in areas such as business regulations and property rights. For example, environmental laws could create new industries and destroy old ones if they can not adapt.Technological Change
Technology can lead to changes in productivity, efficiency and employment demand. For example, the use of digital computers by businesses beginning in the 1960s led to some productivity improvements and many new industries. Historically, it is common for predictions of technology driven economic change to be overly dramatic.Development
The development of the soft and hard infrastructure of a nation. For example, a country that builds institutions, transportation systems, technology infrastructure and resilient cities that make its economy more efficient.Markets
Structural changes to markets or the introduction of new markets. For example, ecommerce is a relatively new market for goods and services.Supply
Shifts in supply such as a shortage caused by a war. Supply can also suddenly increase due to technological advancement.Demand
Demand shifts such as changing consumer needs and preferences. For example, refrigerators cause a shift in food consumption patterns when they are adopted by consumers in a developing country.Trade
Shifts in trade such as the long term trend towards more international trade known as globalization. On the flip side, a trade war can cause a sudden reduction in trade.Disasters
A disaster or war can result in sudden change such as a severe shortage of raw materials, parts and goods.Economic Problems
Economic problems such as a depression or hyper inflation can permanently change the structure of an economy.Business Models
A business model is a way of capturing value. The global economy is mostly based on a handful of business models. As such, new business models or shifts in business models can have a significant impact. For example, many advanced economies are experiencing a shift towards service industries as a greater percentage of economic output.| Overview: Economic Change | ||
Type | ||
Definition | A shift in the structure of an economic system. | |
Also Known As | Structural economic changeEconomic shift | |
Related Concepts | ||
