2-19-10 - -02/19/10- -Background to the Industrial...

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-02/19/10- -Background to the Industrial Revolution, 1600-1800: The Atlantic Slave Trade- 1. Modern Capitalism – Already in place before industrialization could take off. “a mechanism for maintaining and sustaining an entire society”. Consists of a modern corporation, which is an entity that has an existence independent of the people that make it up. Something that exists over and above the people who make it up -Corporations are made up of shareholders from individuals who pool their wealth. In this period, corporations were different in that today we feel corporations are private sectors independent from the government, whereas in this period corporations were given charters from the government to have a monopoly over a certain area, giving them exclusive rights to trade in this area. -The Dutch East India Company, 1602- The first of the merchant corporations. Had control of much of the shoreline in the eastern world, which gave them a lot of power in ocean trade. -By the end of the 18 th century, there are about 16 of these corporations that develop certain patterns of trade. -4 interrelated features of modern capitalism: -Distance- Trade took place over long distances. Capitalism is something global. -credit- Since transporting goods over these long distances was expensive, a credit mechanism needed to be put in place so that merchant corporations could borrow money. This gave rise to banks and lending institutions. -risk- This kind of trade was risky: storms, hurricanes, piracy, etc. In order to protect themselves against these risks, insurance corporations arise as a result. -scale- If you succeeded in completing this trade, the profits were great; much larger than if you were to attempt something smaller, easier, safer, etc. -New attidudes
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2-19-10 - -02/19/10- -Background to the Industrial...

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