5.7: Economic Developments and Innovations 1750-1900 t

States shifted from mercantilism (state-controlled wealth accumulation) to laissez-faire capitalism, which allowed private individuals and businesses to drive economic activity.

What major economic system did many states abandon during the Industrial Revolution?

Limited liability meant that investors were not personally responsible for company debt — only the amount they invested was at risk.

What is the key innovation introduced by limited liability joint-stock companies (corporations)?

After the Opium Wars, Britain needed a financial institution to support trade (especially opium and other goods) with China and the broader region.

Why was the Hong Kong and Shanghai Banking Corporation (HSBC) created?

A joint British-Dutch company, Unilever set up production globally to sell consumer goods like soap, profiting from imperial markets and industrial methods.

What did the Unilever Corporation specialize in, and what was its global impact?

Mass production made goods more available and affordable, which spurred a new consumer culture, particularly among the middle class.

What new cultural trend emerged due to the rise of manufactured goods and capitalism?

Advertising helped drive demand by creating desire and social pressure — people were encouraged to feel inadequate without certain products.

What was one major development that helped fuel demand in consumer societies?

Long, grueling factory hours created a need for escapism, giving rise to pub culture, spectator sports, and leisure devices like bicycles.

How did factory work influence new patterns of leisure in industrial society?

The bicycle became an affordable and fashionable symbol of independence, mobility, and middle-class leisure.

What leisure activity became especially popular among the middle class during the Industrial Era?

Multinational corporations used industrial and imperial networks to expand globally — unlike joint-stock companies that were focused on singular trade goals.

What distinguishes a multinational corporation from earlier forms of business like joint-stock companies?

Industrialization led to global capitalism, advertising, and mass production, resulting in new class identities and expectations.

Which of the following is a long-term consequence of the Industrial Revolution’s economic changes?