Great Britain and their Possession of the Factors of Production

Directions: In the late 1700s, Great Britain was neither the largest country in Europe, nor the smallest. However, it was rich in the factors of production. After reading each passage about Great Britain, write down the factor of production that is discussed on the line provided. There may be more than one factor of production in some passages. Annotate the words that brought you to your conclusion.

Geography

Since Great Britain was an island, she possessed many ports that were perfect for shipping goods around the world. Natural waterways (rivers and streams) connected all parts of the country. Great Britain possessed many natural resources that could be used for fuel or to build machines, such as coal and iron. Its island location also allowed Great Britain to stay away from the wars that were constantly being fought on the European continent, therefore being able to conserve their resources.

Government

Parliament passed laws that encouraged business. No trade barriers within the country and incentives to try new ideas encouraged citizens to invest in new projects. The government also kept war away from their land, protecting people’s lives and property. Citizens of Great Britain felt safe and concerned with matters other than war.

Colonial Empire

Britain purchased and imported raw materials from her colonies. From these raw materials, British companies could produce goods. These goods were then sold back to her colonies, as well as to other parts of Europe. This circular form of trade enriched the nation. Many merchants and the government became very wealthy and sought industries to invest their money.

Growth of Private Investment

Private businesses funded experiments and entrepreneurs to create better products. We would call this “research and development” today.

Sea Power

Great Britain had the world’s best Navy at the time, and could protect the shipping of raw materials and finished goods around the world.

Population Growth

Scientific improvements in farming during the 1700s led to more crops and healthier livestock (Agricultural Revolution), which in turn brought more food to the people. The Agricultural Revolution made farming more efficient which put many out of work. All of this meant Great Britain had many available workers.