Modernized Economy

Definition

A modernized economy refers to an economic system that has evolved from being primarily based on agriculture to one based on manufacturing and services. It is characterized by advanced technology, high productivity, and a strong infrastructure.

Analogy

Think of a modernized economy like upgrading from an old flip phone to the latest smartphone. Just as the smartphone can do so much more than just make calls (like browsing the internet, taking photos, using apps), a modernized economy offers more diverse opportunities for production and growth beyond traditional farming.

Related terms

Industrialization: The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods.

Service Sector: The portion of the economy that produces intangible goods. This includes industries such as retail, tourism, banking, entertainment etc.

Infrastructure: The basic physical systems of a business or nation; transportation, communication, sewage, water and electric systems are all examples of infrastructure.