ABSTRACT
The organisational evolution of the corporate industrial production system came in the West in the historical contexts of post-industrial revolution. Its forerunner was the joint stock companies that flourished in the mercantile period through colonial conquests and specie flow. Under the Gold Standard exogenous money, the corporate production system achieved a golden era that later turned into golden fetters. The illustration of the corporate production economies by an open economic circuit diagram indicates the agents or sectors and their transaction flows and stocks. It reveals the existence of the paradox of profit and shows how the corporate production circuits overcome it through colonial trade, ensuring inflow of gold and supply of labour from the rest of the world in a triangular trade pattern. Yet, the circuit always stays at the edge of a crisis with continuous accumulation of stock of goods as surplus production, which cannot be monetised without a continuous inflow of money from outside the circuit. The rest of the world acts as the womb for nourishment of this nascent evolution at the embryonic state. Reaching the limits to gold inflow through net exports, the corporate production circuits of the West face the crisis of the 1930s and await an organisational evolution.
