Ch. 23 Big Businesses

Labor

Instigated American Ingenuity, where mass- production methods were generated through patented machinery.

mass production methods

Fueled by controlling machinery.

Liquid Capital

money available for you to invest.

government authority

license conferring a right or title for a set period, especially the sole right to exclude others from making, using, or selling an invention.

JP Morgan

purchased Carnegie Steel; he bought out competitors and created the largest enterprise.

GDP

how much services and goods you are producing.

Vertical Integration

Combining into one organization; all phases of manufacturing from mining to marketing

Horizontal Integration

Allying with competitors to monopolize a given market

Social Darwinism

Theorists who argued that individuals won their status in life by competing based on their natural talents

Monopoly

Control of trade in the industry; business controls over industries: production, quality of goods, and price and wages within that industry

Trust

*Can have vertical and horizontal integration

Competing companies join together by what is known as a trust agreement.

Reasons for American industrial expansion: In order of  importance

Natural resources Labor- immigration allowed for cheap labor Railroad networks American Ingenuity Innovations in transportation/communication- Patents: Mass-production methods/machinery Liquid Capital- money available for you to invest