1. Industrialization Lesson 3

2.  What determines Productivity?  Resources  Transportation  Public Policy  Technology

3.  What is a big business?  Gigantic companies that own numerous plants or factories and sell products nationwide  It requires a large investment, too large for one individual

4.  Corporations  Companies formed by a group of investors  Trust  Group of corporations come together to form one  Monopoly  One Business in control of a particular product  No competition

5.  Horizontal Integration  Buying up all the companies in your industry  Ex. Standard Oil Company – bought other oil companies  Impact?

6.  Vertical Integration  Buying up businesses that relate to one another  Ex. Carnegie Steel – owned iron ore mines, Rail road, and steel mills  Impact?

7.  Positives  Lower Prices  Products reach all over U.S.  New products available  Negatives  Eliminates competition (smaller business can’t survive)  Monopolies may increase prices  Take less care of employees

8.  John D. Rockefeller  Owner of Standard Oil Company  Practiced Horizontal integration  Eliminated competition by lowering prices and spying on other companies.

9.  Andrew Carnegie  “Rags to riches”  Carnegie Steel  Vertical integration  Dirty Tactics  Philanthropist – gave away his money

10.  What happened to Competition during the Industrialization era?  Who is supposed to monitor this? Why didn’t anyone stop it?  Can you think of a big business today that has low prices and uses them to eliminate the competition?

11.  Use the political cartoons to answer the following questions on a separate sheet of paper. 1. Identify the symbols and characters in the cartoon. (list) 2. What does each symbol represent? 3. Describe the action taking place in the cartoon. 4. What is the cartoonist trying to say?