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New Production Methods, Inventions, and Advertising Assembly Line New inventions Advertising
Assembly Line Allowed businesses to mass produce goods Led to cheaper goods
Henry Ford Perfected the assembly line Model T-first affordable car
New inventions Light Bulb Telephone
Light Bulb Thomas Edison allowed factories to stay open later=more production=more money
Telephone Alexander Graham Bell Faster communication made it easier to place and receive orders
Advertising Convinced people to buy products that were massed produced
Examples of Advertising billboards Newspaper Catalogs Pop terms Street cars Magazines
The Railroad Changes American Industry and Life Created faster and cheaper transportation Railroad expansion led to the growth of other industries Railroad Barons controlled railroad traffic
Created faster and cheaper transportation Refrigerated rail car-made it possible to ship meat without spoiling
Railroad expansion led to the growth of other industries. Allowed business to ship products faster.
Examples of industries that grew. Steel Lumber Coal
Railroad Barons controlled railroad traffic. Vanderbilt, Huntington. Stanford. Consolidated the railroads. Gave rebates, or discounts to gain customers Created pools for secrete agreements, to cut out the competition.
The Rise of Big Business Factors of production Raising capital Business Practice Captains of Industry/Robber Barons
Factors of Production Land The land itself
Natural resource Coal Lumber Iron Ore Oil Steel
Labor Workers turn raw material into goods
Capital machines Buildings Tools money for investment- selling stock and savings
Raising capital Needs to pay workers Buy Materials Pay for advertising
Selling stock corporations-companies that sell stock to the public Stock is a share of ownership in the business
Horizontal Integration the purchase of companies in the same industry Example: An oil company buys other companies
Monopoly When a single producer/company has control of an entire industry Vertical and horizontal integration can lead to a monopoly
Captains of Industry/Robber Barons John D. Rockefeller Cornelius Vanderbilt Andrew Carnegie
John D. Rockefeller Oil industry Bought out other companies Controlled 90% of the country’s oil. Started his own oil refinery that became the biggest in Cleveland Owned 50 of ‘em
Cornelius Vanderbilt Railroad industry Invested money in railroad industry. Steamship captain nicknamed “Commodore.” Made a fortune with his own steamship line.
Andrew Carnegie Steel Industry Started his own business Sold his steel company to J.P. Morgan for $447,000,000.
Created by: Holiday8