1. The Second Industrial Revolution

2. 1850 is the dividing phase between the first and second IR
Larger scale of industrial enterprises
Further geographic expansion
Closer relationship between theoretical science and its application in technology

3. New Technologies and Methods
Steam engines
Mass production
Bessemer Process
Reinforced concrete and steel girders
Chemicals had many uses
Harnessed the power of electricity
Petroleum
Only starting to scratch the surface

4. Transportation and Communication
Steamships
Completion of Suez and Panama Canal
Airplanes
Development of city streetcars and subways

5. Transatlantic telegraph cable
Standardized time zones were introduced
Discovery of radio waves translated into new technology to coordinate military power and control public opinion

6. Business Cycles and Managing Markets
Economy suffered from boom-bust cycles from
Overproduction and unpredictable commodity prices routinely plunged Europe into recession
To manage markets, businesses became more organized

7. Introduction of the modern corporation
Some industries informally collaborated into cartels
Banks pooled investment resources
Horizontal integration – control of several corporations by a holding company
Vertical integration – corporation controlling all stages of the production and distribution process

8. Many countries began to move away from free trade toward protectionism of national industries
Corporations began to exploit communication advances for marketing purposes
Opened a new world of consumerism to European citizens
First department store opened as well as the development of white collar workers

9. The Balance of Power and Global Integration
Germany surpassed Britain by 1900 in steel, iron, coal mining and chemical production
European corporations and governments came to dominate the functioning of the world economy
Imperial power invested in Asian, African and Latin American ventures