Theories of economic growth largely look at the world as experienced from early European agrarian society to modern American consumerism. Outside of this view, the assessment of economic growth has been studied on a by-country basis. The stages of growth for Western societies include transformation from an agrarian society to a pre-takeoff economy in which inventions are ad hoc. From a pre-takeoff, a stream of investments fuels a takeoff in new inventions that transforms society. After the takeoff, the society matures and eventually develops into a consumer driven economy.
Karl Marx posited four stages of political economic development resulting ultimately in capitalism. He posited that tribal culture wherein society was structured around the needs of the family developed into barter economies and class-systems with the introduction of slaves. From there, society grew into a primitive form of communism in which a union of tribes owned the property. Feudal and estate property was a further development of the tribal union wherein an entire community might produce agricultural goods for the land owner and keep a small portion for themselves. After the English and French revolutions, the economy functioned exclusively around the exchange of currency for goods and services -- a capitalist economy.
The stages of economic integration evaluate the process by which a single national economy becomes enjoined with several other countries as part of an economic block, such as the European Union. Such development occurs as trade relationships strengthen between one or more countries. and it is perceived by the group that trade can be improved with other trading partners if the group bands together as one. The original agreements may begin as free trade agreements in which two countries agree not to charge tariffs on each other's exports. The two nations may then establish a customs union whereby they harmonize trade policies and regulations, which include tariffs on other countries and import quotas. A common market may develop, which allows citizens from each country to move freely in search of work and education. Finally, the economic union involves synchronization of labor and immigration laws as well as industrial regulations.
The stages of production refer to the stages of introducing a product for sale in the market. First, the seller applies capital, labor and resources to the production of a product. The rate of marginal return the seller can expect to receive on each product unit will increase the more units are produced in stage one. In stage two, the number of units continues to increase while the marginal returns decrease but remain positive. In stage three, the seller reduces the amount of output in response to the decrease in marginal returns. It is the choice of the seller.