Section 5.7 - Economic Developments and Innovation

Question 1

Major economic systems (1750-1900) that replaced mercantilism

Answer 1

Capitalism and Laissez-Faire, encouraging a reduction in government involvement in commerce and tariffs

Question 2

What increased alongside trade?

Answer 2

Availability, affordability, and the variety of consumer goods

Question 3

Corporation

Answer 3

A business charted (planned out) by a government and is owned by stockholders (investors who fund a company through stocks, either getting a dividend from their profit or losing what they invested)

Question 4

Comparisons/Contrasts between a corporation and joint stock company

Answer 4

Although both are funded by stocks, stockholders of a corporation are limited in their liability; they will only lose what they invested. In a JSC, they are liable for the debts the company owns (equivalent to how much they invested)

Question 5

What were being organized during 1750-1900

Answer 5

New forms of businesses

Question 6

Monopoly

Answer 6

Control of a specific business/industry and elimination of all competition

Question 7

Transnational Company

Answer 7

A company that operated beyond its national boundaries

Question 8

Examples of Transnational Company

Answer 8

Hong Kong and Shanghai Banking Corporation (finances, investments, banking) and Unilever Corporation (household goods like soap)

Question 9

Cecil Rhodes

Answer 9

Investor in a railroad project planned to connect British colonies (Africa to Egypt) but was never completed

Question 10

Result of companies being transnational

Answer 10

They gained more wealth and influence than ever before

Question 11

Effect of Corporations on the Economy and Government

Answer 11

They gained great economic and political power by replacing the traditional system of one entrepreneur engaging in high-risk endeavors with multiple companies engaging in lower-risk ones. Like deciding where to build a new factor decided the location of where thousands of new jobs and opportunities would appear

Question 12

Sole Proprietorship

Answer 12

Business owned by a single person

Question 13

Partnership

Answer 13

A small group of people makes all business decisions

Question 14

Importance of Lloyd’s of London (coffee shop and shared reliable shipping news)

Answer 14

Increased the number of banks and helped established the insurance industry, reducing business risks.

Question 15

Cause of Rise of Advertising from 1750-1900

Answer 15

Consumption of goods needed to keep up with the production of them

Question 16

Consumerism

Answer 16

The promotion and encouragement in the interest of consumers/consuming

Question 17

Pass Times that Arose from 1750-1900

Answer 17

The playing of sports such as soccer in Europe and baseball in the U.S., music halls, and public parks

Question 18

Sports played by the upper classes vs. lower classes

Answer 18

Tennis and golf in England played by upper class while rugby was played by lower class

Question 19

What was one purpose of leisure time and the mingling of classes that occurred as a result?

Answer 19

To make the lower classes see more civilized, rational behavior, and do the same

Question 20

Similarities and Differences between Mercantilism and Capitalism

Answer 20

Although both were economic systems that desired to efficiently make the most money, while mercantilism had high tariffs established by a country so that countries under it would only trade with them, capitalism decreased government involvement and laissez-faire reduced these tariffs, expanding the amount of trade, supply, and who was trading with who.