Land or Natural Resources Labor or workers Capital & Capital goods
U.S is lucky to have an abundance of natural resources! 1. minerals/oil 2. timber 3. crops 4. water
U.S. needs lots of workers for its new factories U.S. encourages immigrants to come to America Between U.S. population doubles
Manufactured goods used to make other things 1. machines 2. factories 3. tools
Money for investing Birth of corporations: ( A company that sells shares or stock to the public ) People who invest/ buy stock are considered shareholders: partial owners When the company makes money they give shareholders dividends: cash payments
WRITING ASSIGNMENT Thursday September 11, on factors of production: 3 list/describe each factor 2 give two examples of each factor 1 explain why all 3 factors are necessary for the successful production of goods
John D. Rockefeller creates Standard Oil He uses Horizontal Integration: purchase of competing companies in same industry He creates a trust: group of companies managed by the same board of directors This will drive out his competition creating a monopoly: total control of an industry by a single producer
Andrew Carnegie becomes leader of steel business He uses vertical integration: purchase of companies at all levels of steel production 1. Iron/coal mines 2. Warehouses 3. Ore ships 4. R ailroads
Mergers: the combining of companies caused several problems for consumers and workers: 1. No competition 2. High prices of goods 3. Poor work conditions Sherman Antitrust Act: government tried to outlaw trusts & monopolies
WRITING ASSIGNMENT Use text evidence to describe the differences between vertical & horizontal integration.