Unit 5 Topic 7: Economic Developments in the Industrial Age (Heimler's History)

Countries favoring mercantilism abandoned that economic ideology in place of what economic ideology during the Industrial Age?

Adam Smith's laissez-faire capitalism

What was mercantilism?

An economic philosophy that emphasized only a limited amount of wealth, such as gold and silver, existed in the world. In order to gain power, nations had to amass wealth by mining these precious raw materials from their colonial possessions.

What are some characteristics of a free market?

-There was no limit on wealth

-Supply and demand encouraged people to make economic decisions

-The government would intervene minimally

What was the economic effect of mercantilist economies becoming free-market economies?

It made a lot of wealth

How were corporations different than joint-stock companies?

They offered limited liability

How were corporations similar to joint-stock companies?

They worked in almost the same way, except for limited liability

What was limited liability?

Profits were shared by shareholders, but debts were limited

Who established the Hong Kong and Shanghai corporation?

The British

Why did the British establish the Hong Kong and Shanghai corporation?

They needed a bank for the mass amounts of money they got from selling opium to the Chinese

Which two nations partnered to create the Unilever Corporation?

The British and the Dutch

What was the goal of the Unilever Corporation?

To produce and sell household items (such as soap)

What did the Unilever Corporation do to reach their goal?

They established factories in many different nations to sell and manufacture goods

Since multinational corporations were global in scale, what happened to their economy?

They became extremely wealthy in scale compared to previous businesses before this time

What did the rise of capitalism and the abundance of manufactured goods cause in the middle class?

It made a rise of consumer culture, and it rose the standard of living for the middle class as well

Since companies produced more goods than people could buy, what industry was created?

The advertising industry

Because of long shifts in the factory, what saw a general rise?

Leisure culture

What were some activities in leisure culture?

-Visiting a bar

-Riding a bicycle

-Cockfighting (when chickens battle and kill one another)

-Watching sports