CHAPTER 13 The Industrial Revolution Section 3 New

CHAPTER 13 The Industrial Revolution Section 3: New Methods and Business Organizations Objectives: Identify the elements that made mass production possible. Explain why corporations emerged and how they affected the way business was conducted. Describe the pattern known as the business cycle.

SECTION 3 Israel and the Occupied New Methods and Business Territories Organizations 13. 3 Bell Ringer: What is the chain of events in the business cycle? (create a Flow Map)

SECTION 3 New Methods and Business Organizations THE BUSINESS CYCLE DEPRESSION PROSPERITY falling demand for goods rising demand for goods

SECTION 3 Israel and the Occupied New Methods and Business Territories Organizations Capitalism • Economic system where individuals (not gov’ts) control the factors of production. • Businesses and the means of production are privately owned and operated.

SECTION 3 Israel and the Occupied New Methods and Business Territories Organizations Commercial Capitalism: Merchants bought & sold goods. Industrial Capitalism: produce and manufacture goods.

SECTION 3 Israel and the Occupied New Methods and Business Territories Organizations Capitalist: investor in a business …became more involved in producing and manufacturing goods ----

SECTION 3 Israel and the Occupied New Methods and Business Territories Organizations Division of Labor and Interchangeable Parts • Divided into steps • Hire unskilled labor for each step – DIVISION OF LABOR! • Increased production • Lowered costs • MORE PROFIT

SECTION 3 Israel and the Occupied New Methods and Business Territories Organizations Eli Whitney • Used division of labor to make muskets • Parts were all alike • interchangeable parts • Speedy production of inexpensive muskets • Easily repaired!

SECTION 3 Israel and the Occupied New Methods and Business Territories Organizations Mass Production Producing large numbers of identical items What do you need for Mass Production? Division of labor Use of interchangeable parts An assembly line

SECTION 3 Israel and the Occupied New Methods and Business Territories Organizations The Assembly Line Parts brought together to one location Carried from worker to worker Saved time and energy

SECTION 3 Israel and the Occupied New Methods and Business Territories Organizations Henry Ford • Used a conveyor belt • Founded one of the largest industries in the world • Model T would be assembled in 93 min. • Other industries would mass produce items….

SECTION 3 Israel and the Occupied New Methods and Business Territories Organizations Rise of the Corporation Partnership: two or more people own and run a business. Sole proprietorship: one person owns & runs the business.

SECTION 3 Israel and the Occupied New Methods and Business Territories Organizations Rise of the Corporation • Company that allows people to buy “shares of stock” • Each share would receive a portion of the profits • By late 1800 s, some corporations were very large and powerful. J. P. Morgan – US Steel

SECTION 3 Israel and the Occupied New Methods and Business Territories Organizations Monopoly When a corporation gains COMPLETE CONTROL over the production or sale of a good/service

SECTION 3 Israel and the Occupied New Methods and Business Territories Organizations Cartel When corporations join together to control every stage of an industry. Example: German steel industry -coal & iron mines -steel mills -factories

SECTION 3 Israel and the Occupied New Methods and Business Territories Organizations business cycle Alternating periods of prosperity and decline depression

SECTION 3 Israel and the Occupied New Methods and Business Territories Organizations 19 th-century political cartoon of Rockefeller, caricatured as "King of the World" sitting on a barrel of oil.

SECTION 3 Israel and the Occupied New Methods and Business Territories Organizations

SECTION 3 Israel and the Occupied New Methods and Business Territories Organizations

SECTION 3 Israel and the Occupied New Methods and Business Territories Organizations Any Questions? QUIZ TIME! Commercial Depression Individuals or corporations Monopoly Industrial prosperity One step Cartels Corporations Mass production

SECTION 3 Israel and the Occupied New Methods and Business Territories Organizations

SECTION 3 New Methods and Business Organizations THE BUSINESS CYCLE more machines and workers needed factories increase orders for iron and hire more workers production increases to meet demand falling demand for goods large firm reduces orders for iron & lays off workers iron suppliers cut production & lay off workers PROSPERITY DEPRESSION wages go up and people buy more new factory opens & hires many workers competing for jobs employers pay less rising demand for goods prices go up to cover the cost of production workers buy less