Economic growth and development - Cartels and trusts Flashcards

1
Q

What was the foundation of the industrial economy?

A

Joint-Stock capitalism.

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2
Q

What is joint-stock capitalism?

A

The development of larger economic units by businessmen who joined forces to form corporations.

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3
Q

What were corporations?

A

Commercial enterprises that were bigger than family firms and able to raise huge funds through investment and loans.

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4
Q

What did the investors hold?

A

Stocks and shares so that costs, losses and profits could be shared.

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5
Q

What was the Bull and Bear Market?

A
Bull = share prices rising and business confidence high
Bear = share prices falling and business confidence low
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6
Q

What were monopolies?

A

The merged enterprises which joined together to raise more capital (money for investment) to gain access to wider markets, and to out-muscle competitors.

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7
Q

What was Cartelisation?

A

The process by which trusts and combinations formed cartels able to dominate markets and squeeze competitors out of business.

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8
Q

What was the protective tariff?

A

Business persuading government to impose high customs duties (tariffs) on imports to make them more expensive, and so ‘protect’ producers from cheaper competition.

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9
Q

Describe ‘Robber barons’

A

The derogatory term used to describe the super-rich individuals who controlled big business.

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10
Q

What was the Antitrust legislation?

A

Action demanded by those who wanted the government to regulate big business trusts to break up monopolies and to enforce fair competition.

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