Land or Natural Resources
Labor or workers Capital & Capital
goods
U.S is lucky to have an abundance of natural resources!
1. minerals/oil 2. timber 3. crops 4. water
U.S. needs lots of workers for its new factories
U.S. encourages immigrants to come to America
Between 1860-1900 U.S. population doubles
Manufactured goods used to make other things
1. machines 2. factories 3. tools
Money for investing Birth of corporations:
(A company that sells shares or stock to the public )
People who invest/ buy stock are considered shareholders: partial owners
When the company makes money they give shareholders dividends: cash payments
WRITING ASSIGNMENT
• Thursday September 11, 2014• 3-2-1 on factors of production:• • 3 list/describe each factor• • 2 give two examples of each factor• • 1 explain why all 3 factors are necessary
for the successful production of goods
John D. Rockefeller creates Standard Oil
He uses Horizontal Integration: purchase of competing companies in same industry
He creates a trust: group of companies managed by the same board of directors
This will drive out his competition creating a monopoly: total control of an industry by a single producer
Andrew Carnegie becomes leader of steel business
He uses vertical integration: purchase of companies at all levels of steel production
1. Iron/coal mines 2. Warehouses 3. Ore ships
4. Railroads
Mergers: the combining of
companies caused several problems for consumers and workers:
1. No competition 2. High prices of
goods 3. Poor work
conditions Sherman Antitrust
Act: government tried to outlaw trusts & monopolies
WRITING ASSIGNMENT
Use text evidence to describe the differences between vertical & horizontal integration.
