Role Of Accommodation Sector In Tourism Development

Q) Discuss the role of accommodation sector in the development of tourism ?

It is important that a tourism professional be aware of all the categories of accommodation. Different categories of accommodation are

1. Five Star Deluxe Hotels

These are usually found in metro cities and other second tier cities. These hotels usually have 200 - 800 rooms. They are categorized by international standards such as the number of restaurants, size of lobby, business centre facilities, swimming pools etc.Five star deluxe hotels have high standards of quality control. Business executives and upscale tourists are the main customers.

Star categorization of hotels are not mandatory in India. Hotels themselves offer for categorization, which is based on certain criteria and inspection by officials.

2. First Class Hotels

These hotels will have most of the facilities of 5 star deluxe hotels. These are found in metro cities and mid-sized cities. These hotels are mainly used by a combination of business executives and tourists.

3. Non-star Hotels

These are small hotels which are not classified categories. Many tourists stay in these hotels as per budget adjustments. Eg: ITDC Ashoka group hotel at Kovalam.

4. Resorts and Lodges

These are meant exclusively for tourists and are found in remote destinations. Resorts and lodges usually have certain features such as elaborate swimming pools, a balcony or patio overlooking each room. There will be entertainment facilities as well. In India, there are resorts for tourists of different tastes. Whether luxury or low budget resorts, they primarily offer a stay in the natural surroundings. They are seasonal as well.

5. Tented Camps

Tented camps are growing in popularity. They have low investment and are Eco-friendly. The best thing about tented camps are, you don't need to spend too much money on the upkeep of the place once the tourist season is over. Tented camps are usually set up in remote places such as near a game park or reserve. Bathrooms will be attached or set up separately depending on the luxury level. Mobile tented camps are used while trekking.

6. Heritage Hotels

Tourists visiting historical cities will be fond of historical places. They always love to stay in the same way as the Rajas who lived centuries ago. Government of India started encouraging heritage hotels by giving incentives to the owners of forts, palaces and havelis to convert them into heritage hotels.

7. Guest Houses

Guest houses can be found in cities, towns and remote destinations. These are generally used by tourists who travel on their own, spend longer periods of time, who wish to know the host culture intimately and want their expenditure to be modest. They typically have one or two meals a day and spend rest of the time outside.

Most guest houses are run by families and the tourist stay there as guests. Eg: House boat. Recently, paying guest accommodation is also gaining popularity. Tourists can enjoy local food and customs rather than dealing with the hotel set up which is pretty much the same everywhere in the world. These guest houses also provide an earning opportunity for the locals without investment.

8. Alternative Accomodation

Other forms of accommodation are small hoarding houses, lodges managed by tourism departments and tourist camps. The rest rooms of railways can also be recommended for short or overnight stay.


A tourist spends 40% of his money for accommodation. A tourist accommodation must incorporate recreational and educational activities into its architectural design.

Tips To Pass IGNOU BTS First Year

This post is specific for IGNOU BTS first year students. You will have 5 theory papers to clear, out of those one paper will be an elective.

How To Pass IGNOU BTS First Year ?

You don't need to worry if you haven't studied anything for the whole year. That is the sad part of studying with IGNOU. You won't get any quarterly or mid term examinations to test your knowledge. All you will get is some basic lectures from study centres. These lectures won't get you through the exam. Here I will give some tips on how to pass IGNOU BTS first year term end examination. I used these tips to pass the examination and got a score of 70%.

1. You really don't need to worry if you haven't learned anything. Past is past. All you need is 30 days to prepare for all the subjects. The December 2014 term end examination is scheduled to start on 1st Dec, so you have 31 days to prepare (from today onwards). 

2. If you want to pass the examination, first you need to make notes of all important topics related to each subject. Since you have started late, you won't get time to cover each and every lesson. So you must make a shortlist of important topics and study them. In the beginning (for first 5 days), try to spend at least 4 hours for studying. I was working in an IT firm when my term end examination came, so the maximum I could spend for my studies after work was 4 hours. I realized that, it was not enough. So I resigned and started studying full time. I used to spend 6-7 hours each day for studying. 

I had to spend a lot of time for identifying the important topics and then to make notes. It was a daunting task. So to make things easier for you, I have published all notes I made, on this blog. So that you don't need to spend time making notes. You can save that time for making revisions. Link to notes are given at the end of the post. The notes will be updated each day, do comeback for new notes or you can like our facebook page IGNOU BTS NOTES for updated information regarding important dates, notes and assignments.

3. If you learn all the notes published in this blog, I can assure you that you will pass BTS first year. The notes are prepared by taking important points into account. I used the same notes to pass examination myself. But you need to elaborate those points to make it a big essay.

Here is the link to notes, which you can use for studying IGNOU BTS NOTES LIST

Sony LCD TV Remote Price In India

There are two types of Sony LCD TV remotes available in Indian market, the original and the duplicate. Original Universal Sony LCD TV remote costs around Rs.800 per piece. You really don't need to buy model specific remote for your LCD TV. Sometimes you won't even get one. So go for universal Sony LCD TV remote that costs around Rs.800. It will work on all TVs.

If you can't afford the cost of original remote, you can always buy duplicate ones that you normally get in all electronic shops. The price for Sony LCD TV duplicate remote starts from Rs.200. I have seen some online stores selling the same Rs.200 remote for Rs.350 and more. They are making profit by unfair means. So I would advice you to buy it offline or buy online from a seller who sells it for around Rs.200.

You can get original Sony TV remote from any Sony authorized service centre or from suppliers of Sony genuine accessories. I won't recommend duplicate remote as you never know when it will stop working. Buying original accessories pays off in the long run, even if there is some initial investment.

Role Of Transportation In Tourism Growth In India

Q) Discuss the role of transportation in the growth of tourism in India with special reference to the aviation sector ?

A fast and efficient means of transport is very essential to link various tourist destinations, especially in a vast country like India. Time taken to cover long distances should be cut short to the minimum. Nowadays, tourists have very limited time in their hands. A leisure tourist may have only a few weeks while a business tourist will have only a couple of days. Tourists want to maximize the value of their money spent by covering maximum number of places in a limited time frame.

The biggest obstacle of tourism development in India is the inadequate travel facilities from the main points of arrival in the country to the centre of tourist attraction. The growth of air travel capacity will improve this condition. The tourist traffic in India is estimated to grow at 6% annually. 

Road transport plays a major role in short distance travel. The percentage share of buses, cars, jeeps and taxis are still minimal in our country. Luxury coaches and rent a car system is virtually insignificant with meager presence in metro cities only. Road transport service lacks in comfort and choice as well. But road transport is still one of the major modes of transport for inland tourists.

Rail transport is the main link between the length and breadth of the country. It provides basic infrastructure for inland tourists. But international tourists still prefer air transport which provides greatest speed and comfort. 

The share of water ways is negligible in tourist traffic. Ropeways also have distinct advantage in hilly areas but it still remains untapped.

Air Transport

The preference for air transport comes from the shortcomings of the surface transport system in India. Rail travel is too slow to satisfy the needs of international tourists. Recently announced bullet train system would fix issues to some extent, but we are still not sure when it will be materialized. At present 40% if the incoming traffic by air consists of tourists. Because of geographical reasons, 90% of tourists coming to India arrive and depart by air.

Tourists depend on air transport even for inland movement because of the vastness of the country and the lack of quality and service of the road and rail system. Major entry points via air are Mumbai, Delhi, Kolkata, Chennai and Trivandrum. Indian Airlines operates domestic and Air India operates internationally. Vayudoot is the subsidiary of Indian Airlines. Pawan Hans helicopter service was started in support of oil drilling in India and for linking Andaman Nicobar Islands and Lakshadweep with the mainland. In addition to these, many private airlines are also operating in domestic and international sector.

Tourism Statistics

Q) Discuss the need and importance for tourism statistics ? Explain briefly the various statistical means for assessing and comparing tourism sector data ?

Q) Use of tourism statistics ?

Statistics stands for the science that deals with the methods of collection of data and of the ways of analyzing them and drawing inferences.

Need And Importance of Tourism Statistics

There are 4 main areas where tourism statistics are required

  1. Understanding the perspectives
  2. Development and planning
  3. Evolving marketing strategies
  4. Facilitating investment decisions
1. Understanding the perspectives

In order to have a proper perspective of tourism in relation to any destination, it is necessary to evaluate its magnitude and significance. Magnitude is measured in terms of volume of tourist traffic. Significance is measured in terms of tourism receipts, value added tax revenue, employment etc. Basic measurement of volume is 'tourist visits' or 'tourist arrivals'. It is the total number of tourist arrivals at a given destination over a period of time, say one year.

The second main volume statistics is the 'average length of stay' which is measured in terms of days or nights at the destination. It gives a general indication of the nature of tourist traffic and demand for tourist accommodation. The best indication of magnitude is the total tourist days or nights, which is obtained by multiplying the tourist arrival figures with the average length of stay.

The value of tourism to an economy is mainly reflected in the tourism expenditure at the destination or tourism receipt. It includes purchase of goods and services, purchase of souvenirs and gifts. In the case of international tourists, tourism receipts do not include the payment made in respect of journeys to and from the destination. Whereas the tourism receipt of domestic tourists include the cost of travel to and from the destination as well.

The average expenditure per tourist is obtained by dividing the total tourist expenditure by the number of tourist days or number of arrivals. The global estimates of tourist expenditure provides a general indication of the value of tourism to an economy while the averages provide general indications of the type and quality of traffic to a destination.The statistics of value added tax revenue and employment due to tourism are obtained through industry surveys.

2. Development And Planning

Planning for the development of tourism involves an objective assessment of demand and supply of various tourism products. It is also important to make realistic forecasts of both demand and supply based on past tends and policy guidelines. The demand can be actual or potential. The demand which has already fructified into tourist visits is the actual demand and that which is yet to be fructified is potential demand.

Actual demand statistics, particularly tourist arrivals and tourist nights have to be compiled by type of accommodation, means of transport, places visited and facilities availed to estimate demand on specific tourism products. Potential demand is assessed in terms of travel plans of target populations, positive response to advertisements, levels of awareness etc through market surveys at the source markets.

The most important factor to be considered while planning, is the capacity of a place to absorb tourism. It is assessed through methods like tolerance by host population, satisfaction of visitors, excessive rate of growth or change etc. Such data are usually gathered through special surveys of both the host community and the visitors.

3. Evolving Marketing Strategies

It is a follow-up of development and planning. The preparation of marketing plans involve the collection and analysis of large volumes of data on various aspects including global trends, market segments, tourist profiles, destination features, strength and weakness of products etc.

Global trends can be obtained from publications of agencies like WTO, PATA etc. Domestic tourism trends can be obtained through surveys or periodic statistical reporting systems. The market segmentation analysis involves the segmentation of total volume of tourist visits and nights by country of origin, purpose of visit and psycho-graphic groups.

Psycho-graphic groups include demographic profiles and behavioral patterns. Destination features like, attraction and facilities available and types of tourists visiting along with the strengths and weakness of tourism products offered by a destination or country also need to be assessed for directing product development and marketing policies.

4. Facilitating Investment Decisions

Investment is based on perception of return on investment and pay back periods. The calculation of these parameters with a reasonable degree of accuracy requires statistical data on profitability of existing units, occupancy rates, industry profiles etc. These statistics are usually collected through surveys of existing units.

Statistical Means For Assessing And Comparing Tourism Sector Data


Total count


Averages are of different types namely arithmetic mean, median, mode, geometric mean.

Arithmetic Mean : Total value / Total no.of units

The average duration of stay of tourists at a place, average expenditure per tourist etc are measure using arithmetic mean.

Median : Middle most value when units are arranged in ascending or descending order. Used for measurement of average room tariff and occupancy rates of hotel rooms.

Mode : Most frequently occurring value amongst all values.

Geometric Mean : nth root of the product of all the values of observations.

Harmonic Mean : Reciprocal of the arithmetic mean of the reciprocals of observed values.

Quartiles : 1/4th

Fractiles : 1/10th

The variance and deviations are known as measures of dispersion. You will get a lot of information regarding averages from these.

Range : Difference between largest and smallest value. It is often used in tourism sector to indicate the variation in hotel tariff, expenditure levels and duration of stay of tourists.

Quartile Deviation : (1st quartile - 3rd Quartile) / 2

Mean Deviation : Arithmetic mean of absolute values of deviations of observations from median.

Variance : Sum of the squares of the observed values from arithmetic mean, divided by the total number.

Standard Deviation : Square root of variance.

Summary Writing Tips

While writing a summary you should covey the idea in short words. You should remove all unwanted sentences from the original passage. There would be some word restriction for summary writing questions. Make sure that the summary you write, comes under the word quota.

Report Writing

There is a definite format for writing reports. If you don’t write reports in the correct format, you will lose marks. Be clear while writing a report. Use short sentences as far as possible. During exams, you will be asked to write reports on various events like reporting a speech, interview or a survey. Format for each type of report writing is different.

Reporting A Speech

While reporting a speech you must include

  • Adequate identification of the speaker
  • The occasion for the speech
  • Exact time and place
  • Title of the speech
Reporting An Interview

The first few paragraphs should include some basic information and introduction about the interviewee. The following paragraphs should include the questions the interviewer asked. Always remember that interview reports end without a conclusion.

Survey Report

Below is the format of a survey report

Title Page


Survey Report On 'Subject'

Prepared By

Name, designation and year and date


Table of Contents




1) Selection of Sample
2) Findings

Conclusions And Recommendations

Reporting Experiments

The format is



Materials Used





Paragraph Writing - Tips

These are some of the points you need to consider before writing a paragraph.

The paragraph can be long or short according to the subject. It must express one idea. All sentences must be related to that central idea. There should not be a single sentence which is not related to the central idea of the paragraph.

Netgear WN3000RP-100PES Wi-Fi Range Extender User Review

This is not a review about the technical aspects of Netgear WN3000RP-100PES Wi-Fi Range Extender, I just want to share some details about what I learned through my experience of using the device.

The current price of Netgear WN3000RP-100PES Wi-Fi Range Extender is around Rs.2600. It may seem expensive but cheaper ones have a lot of problems, so I choose this one.

Setting Up

Setting up Netgear WN3000RP is so very easy. It is very easy to set up, if you have a WPS button on your modem. It is as easy as switching the modem on and off.

Unfortunately, my router didn't have a WPS button, so I had to set it up manually. Even the manual set up was finished in 5 minutes. So ease of set up wise, it is one of the best Wi-Fi range extenders I have ever come across. Manual set up can be done using Smart Genie app from Netgear. All the instructions are well written on the user manual. You won't have any trouble understanding them.


Netgear WN3000RP-100PES review

The range of Netgear WN3000RP is not ideal, but satisfactory. I bought this range extender because of the low range in my brother's room. His room hardly gets 1 bar of Wi-Fi signal. I also wanted to cover my kitchen and the living room (meanwhile my router is in the first floor). Kitchen and living room gets consistent 1 bar signal without the extender. Once I installed the extender, my brother's room consistently gets 2 bars and 3 bars at times. Kitchen and living room got full bars. Ideally, I would have loved full bars in my brother's room, never mind. Now my 2500sq.ft house is fully covered with Wi-Fi signal.

Wi-Fi Switching

I have some issues here. I use my router Wi-Fi when I am on the first floor and Extender signal on the ground floor. I would have loved if my phone automatically switched Wi-Fi networks. Unfortunately, that is not the case here. I have to manually switch to the extender network whenever I am on the ground floor. This is a huge convenience for me. I don't know how to fix it, may be you can help me by commenting.

Features Of Industrial And Post Industrial Society

Q) Discuss the main features of post-industrial society ?

Q) Compare and contrast the meaning of 'industrial' and 'post-industrial' society ?

Industrial Society

In the industrial society, the coming of capitalism led to the polarization between capitalists and workers. The industrial society in the era of classical capitalization was marked by invention and utilization of machines and factories. The inventions powered by steam and electricity transformed both the method and scale of manufacturing.

Post-Industrial Society

United States was losing its economic edge due to Vietnam war and economic recovery of Europe and Japan. To combat this, the U.S government and corporations adopted new strategies. Firstly, the manufacturers adopted an international strategy of moving elements of production overseas to countries like China and India. This move was to take advantage of lower production costs. There was also a rapid growth in the service sector of the economy.

These economic shifts were termed by Daniel Bell as a shift to post-industrial society. He sees the coming of information technology as a decisive feature of this shift. Bell points out that, if industrial society was transformed by steam and electricity, then the post-industrial society will be transformed by information and knowledge.

The industrial society was characterized by manufacturing and therefore making of goods. Whereas, post-industrial society is one primarily involved in the processing of information and controlling the directions of communication. Post industrial society saw a change from mechanical technology to intellectual technology. This includes programming, software and other devices which require a different kind of education.

Some of the changes predicted by Bell in the post industrial society are 
  • Mechanical systems become electromechanical and then electronic. Eg: Typewriter
  • The idea of miniaturization comes into play
  • Digitalization
In industrial society, great industrial complexes came into existence, with traditional means of transport and communication. Eg: Detroit. With the advancement in communication technologies and transport system, developing industrial units can be located in a dispersed fashion. Now you can mass produce goods in India which was designed in a location in U.S. You just need to send the design to India.

Hierarchical decision making of the industrial factory production is now replaced by multi-skilled teams with group of workers collaborating at every stage. In the 19th and 20th centuries, the strength of the nations were their industrial capacity. Now scientific capacity is the determinant of potential and power.

In the post industrial society, there has been a huge rise in the number of professional workers. The number of women in the service sector also increased significantly. The service sector shift is evident in the economy. This is signified by the rise of real estate, insurance and finance sector in a big way. There was a decline in traditional industries and agricultural sector at this time. The rise of new technology information and communication drastically changed the way work was performed.

Note : These are the main points to be covered for this question. However you may elaborate these points while writing a long essay.

Scientific Advances During Renaissance

Q) Briefly discuss the scientific advances made during the renaissance ? 

Renaissance marked the beginning of modern science. The first achievement was in astronomy. The exposition by Copernicus about the rotation of earth on its axis and its motion around the sun was the first among them. This theory was against the ancient system of thought, which was that the earth was the centre of the universe.

The invention of telescope is called the greatest scientific advancement during renaissance. Copernicus' theory was confirmed by Galileo's observations. Galileo was condemned for his invention. His invention was not a popular one among the conservative people, but still  attempts to enforce the acceptance of the old concept of universe were quietly dropped.

Significant discoveries were made in the study of human body and circulation of blood, which helped to combat many superstitions. Based on the study of dissections of human body, Vesalius in 1543 published his book 'De Humani Corporis Fabrica'. It was the first book that provided a complete description of the anatomy of the human body. Cerventus, a Spaniard published a book explaining the circulation of blood. He was condemned to death for questioning church beliefs.

A complete account of the constant process of circulation of blood from the heart to all parts of the body and back again was given by Harvey in 1610 in his dissertation upon the 'Movement of the Heart'. Several other great inventions and discoveries were made in the same period.

Note : These are the main points to be covered for this question. However you may elaborate these points while writing a long essay.

Protestant Revolution

Q) What do you understand by 'Protestant Revolution' ? What kind of economic and political changes accompanied it ?

Protestant Revolution

Protestant Revolution began in 1517 when Martin Luther nailed his 95 theses on the door of the church in Wittemberg, Germany. In his theses, he attacked the sale of indulgences. He challenged people to come forward and dispute on his thesis. During the next 2 years, he wrote a series of pamphlets explaining his theories. But he was not able to convince the Catholic church. In 1520, the Pope ordered him to recant within 60 days or be condemned as heretic. 

Martin Luther was protected by his friend, the ruler of Saxony. Many rulers in Germany were hostile to church at that time, so Luther remained unharmed. Next 25 years, he occupied himself with the talk of building an independent German church. He introduced German as the language of Church services, abolished monasticism and insisted up on the rights of priests to marry. He abolished the special status of priests as representatives of God on Earth, eliminated most of the sacraments except baptism and the Eucharist and emphasized faith rather than good works including pilgrimages and veneration of relics.

The supremacy of Catholic church was abandoned. Highest priority was given to the doctrine of predestination and supreme authority of the scriptures. Break with the Catholic church led to revolts. These revolts helped in eliminating opposition to Luther. But on the other hand, it showed the limitation of Luther's movement as a movement of radical, social and economic reform. Luther sided with the rulers and lords in suppressing the peasant revolt.

Economic And Political Changes

With the protestant revolution, there was a rise in national consciousness among people. People started to think that they should not be ruled by foreigners. They should have their own independent governments. Nation-states were beginning to be formed in accordance with this consciousness.The growth of nationalism was indirectly proportional to the supremacy of the church.

The rulers of the state wanted total supremacy within their realms. They wanted everything under their control, including the church. The church had immense wealth and vast land properties. The church also imposed various kinds of taxes. A major share of these taxes were sent to Rome. The rulers saw the vast prospects of increasing their wealth and resources by confiscating church properties. With the money, they can enlarge their armies and resources.

The Protestant Revolution did not advocate the establishment of a universal protestant church under a single authority like Pope for the Catholic church. It led to the establishment of separate national churches under the control of the state. After the success in Germany, Protestant Revolution spread to other parts of Europe. The doctrines of the protestants were not the same everywhere. In Switzerland, the Protestant Revolution was led by Zwingli and Calvin. Calvin's ideas gained much more support in different parts of Europe than those of Luther.

In England, King Henry VIII was made the head of the church of England which was declared to be an independent national unit subject only to the authority of the king. After the Protestant Revolution, the church authorities realized that it could not be checked by political or military means. A series of measures were taken in the 16th century itself to introduce various reforms. The reforms brought a split in Western Christiandom and a lot of religious wars and conflicts came about.

Achievements In The Field Of Art And Architecture During Renaissance

Q) Highlight the Achievements In The Field Of Art And Architecture During Renaissance ?

Ans. Greatest achievements during renaissance were in the field of painting, sculpture and architecture. The humanism of renaissance found brilliant expression in these art forms. Renaissance marked the rise of artists. Each artist had his own unique individuality and style. They were also highly regarded by the society including merchants, rulers and the church.

Art was freed from religious or ritualistic overtones. They were now appreciated for their values and were seen as achievements of the individual artists. Renaissance's supreme achievement was in painting. The renaissance looked upon art as an imitation of life. They observed man and nature and included their expressions in their paintings. Leonardo Da Vinci was one prominent artist of the time.

The sculpture also followed the path of painting. One of the significant development was the emergence of free-standing sculpture instead of using images of saints and depicted religious themes. Architecture emerged as an art itself and stopped being a religious medium. 

Renaissance marked the decline of Gothic Architecture which had dominated the architecture of cathedrals and churches. They had rib-vaults, sharply pointed arches and buttresses. The Gothic structures had lofty spires. They had  stained glass windows and carved fascades and were decorated with representaions of mythical creatures.

The new architecture style based on Roman architecture developed in Italy and later in other parts of Europe.

Note : These are the main points to be covered for this question. However you may elaborate these points while writing a long essay.

Philips QT4005 Hair Trimmer Review

Philips QT4005 is an inexpensive hair trimmer. The cutting length range is pretty good. This trimmer can be set to cut hair from 0.5mm to 10mm. You can set the trimmer in 20 different length settings starting from 0.5mm with 0.5mm increment for up to 10mm. Philips claims that the design is ergonomic to fit your hands nicely. But it doesn't fit that well. It is not easy to hold, to be honest. The design is not as good as my Panasonic ER206kk, which I have been using for the past couple of years.

The charging time of Philips QT4005 is 10 hours. You will get around 50 minutes (Philips says 35min, I am getting better back up) of shaving time in one charge, but it also depends on how often you trim your beard/hair. I shave only once in a week and the battery lasts for about 45 days (6 shaves), which is quite impressive. The battery doesn't seem to discharge even if it is kept idle for days, which is a great thing especially for occasional shavers like me. As you don't need to charge the trimmer every time you need to shave.You can rinse the head of this trimmer for easy cleaning. However the other parts are not washable. 


Performance wise, Philips QT4005 is worth the money. It cuts hair quick and fast. No stalling, even if you are cutting through pretty long grown beard. I think this one has a pretty good motor inside. You can use the trimmer without the comb attachment for clean shaves. Even though it won't be a perfect clean shave, you can get pretty close there. But you need to take some good care while trimming without the comb attachment as I cut my face multiple times in the first shave itself. Second time, I took extra care and it wasn't an issue after that. 


One drawback of  Philips QT4005 is that it doesn't have cord operation. This might be an inconvenience if the charge goes down while you are shaving. An option to plug it in and continue trimming while charging would have been great.

It is much more louder than trimmers from other brands like Panasonic. I really hate the noise it makes.

The user manual needs a lot of improvement. There is barely anything useful in the user manual. I had to watch some YouTube videos to learn how to clean it.


Philips QT4005 is a value for money trimmer. For the price, it is a great deal. A highly recommended product.

Factors That Led To The Capitalist Economic Development In Europe

Discuss The Factors That Led To The Capitalist Economic Development In Europe ?

Ans. In the feudal economy, the privileged people had wealth in the form of gold and silver. Gold and silver were considered to be idle money as it could not be reinvested to make more money. The growth of trade and manufacture led to the emergence of capitalist economy in which money was used to make profit by investing in business, trade and industry. The profit thus made were reinvested to make even more money.

The growth of trade led to the emergence of a new class called middle class, which played an important role in the society because of the wealth they possessed. The international trade was then dominated by merchants in Italian cities like Venice, Genoa and Pisa. The discovery of sea route to the East and the discovery of America shifted the trade in favor of Portugal, Spain, Holland and Britain.

There were changes in the system of manufacturing goods. The guild system declined due to its inefficiency to supply goods in large quantities which was then replaced by a capitalist system. Under the capitalist system, the merchant earned all the rewards and workers were treated like slaves. The craftsmen from then onwards did not earn for what they produced but earned very low wages.

This period saw a tremendous expansion of manufacturers. This was accompanied by a growing differentiation in towns and the emergence of the working class.

Note : These are the main points to be covered for this question. However you may elaborate these points while writing a long essay.
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