The Rise of Big Business

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Presentation transcript:

The Rise of Big Business Chapter 6.2

Objectives Analyze how large corporations came to dominate American business. Evaluate how Andrew Carnegie’s innovations transformed the steel industry.

A New Capitalist Spirit I. Capitalism -economic system whereby private businesses run most industries, and competition drives costs and wages. A. Economic Factors: 1. laissez-faire a. supply/demand 2. entrepreneurs 3. investing a. stock B. Government Policy 1. Protective tariffs 2. Federal subsidies

Supporters of laissez-faire generally oppose federal subsidies and support.. Tariffs High prices Free trade monopolies :10

The Corporation II. Corporations A. Economies of Scale -Corporations make goods more cheaply because they produce so much so quickly using large manufacturing. B. Costs of a Business/Corporation 1. Fixed Costs -Cost that is constant 2. Operating Costs -Cost that is variable

What is an organization owned by many people but treated by law as though it were a single person? a. a corporation b. an organized pool c. a holding company d. a trust :10

Loans, mortgages, and taxes are examples of a company’s 10 a. stock. b. pools. c. fixed costs. d. operating costs.

Big Business Entrepreneurs III. Andrew Carnegie A. Background 1. Immigrant Family (Scottish) 2. Investor – bridges, railroads, telegraph, oil B. Steel Industry 1. Bessemer process a. vertical integration b. horizontal integration

Combining many firms engaged in the same type of business into one corporation is called a. vertical integration. b. a holding company. c. horizontal integration. d. a monopoly. :10

Big Business Entrepreneurs IV. John D. Rockefeller A. Standard Oil 1. horizontal integration a. monopoly–single company achieves control of an entire market

Mass Marketing V. Marketing Products A. Names & Packaging B. Advertising C. Mail Order Catalogs D. Department Stores

Which Department store began as a mail order catalog? 10 Woolworths Sears Macy’s J.C. Penny

Homework Complete the “Crash Course Industrialization” video and questions

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