Examine the impact of industrial revolution on world economy.

The Industrial Revolution, which began in the late 18th century and continued through the 19th century, marked a profound transformation in the world economy. This period of rapid industrialization had far-reaching consequences that reshaped production processes, trade patterns, and global economic dynamics.

1. Transformation of Production Methods:**
The most significant impact of the Industrial Revolution was the shift from agrarian and craft-based economies to industrialized, mechanized production. The introduction of machinery, steam power, and new manufacturing techniques revolutionized the efficiency and scale of production. This shift contributed to a surge in output, enabling industries to meet the rising demand for goods.

2. Global Expansion of Trade:**
The increased efficiency of production facilitated the expansion of global trade networks. Nations with industrial capabilities sought new markets for their manufactured goods, leading to the establishment of colonial empires and the exploitation of resources from distant regions. The interconnectedness of economies grew as trade routes expanded, creating a more interdependent world.

3. Rise of Capitalism and Entrepreneurship:**
The Industrial Revolution played a pivotal role in the rise of capitalism. With the increased production of goods, entrepreneurial ventures flourished. Capitalism thrived on the principles of private ownership, free markets, and profit incentives, setting the stage for the dominance of market economies in the modern world.

4. Labor and Urbanization:**
Industrialization spurred mass urbanization as people moved from rural areas to cities in search of employment in factories. The demand for labor in burgeoning industries led to the growth of urban centers. This migration and concentration of labor in industrial hubs had profound social and economic implications, creating new challenges and opportunities for societies.

5. Technological Advancements:**
Technological innovations were at the core of the Industrial Revolution. Steam engines, railways, and the mechanization of textile production were just a few examples of transformative technologies. These advancements not only improved productivity in manufacturing but also catalyzed progress in other sectors, such as transportation and communication.

6. Impact on Agriculture:**
The Industrial Revolution brought about changes in agricultural practices as well. Mechanization, such as the use of tractors and advanced farming equipment, increased agricultural productivity. This, in turn, contributed to population growth and freed up labor for employment in industrial sectors.

7. Shift in Economic Power:**
The Industrial Revolution led to a shift in economic power. Nations that embraced industrialization gained economic dominance. The United Kingdom, for example, emerged as an industrial powerhouse, influencing global trade patterns and serving as a model for other nations undergoing industrial transformations.

8. Social and Economic Inequality:**
While the Industrial Revolution brought about economic prosperity for some, it also exacerbated social and economic inequality. The working class faced harsh working conditions, long hours, and inadequate wages. This led to social movements advocating for workers' rights and eventually contributed to the development of labor laws and regulations.

In conclusion, the Industrial Revolution had a profound and enduring impact on the world economy. It transformed production methods, expanded global trade, fostered the rise of capitalism, spurred technological advancements, and reshaped societal structures. The consequences of industrialization continue to influence economies and societies, laying the foundation for the modern economic landscape.