Key Concept 5.1 Industrialization and Global Capitalism / Answer
Concepts & Relevant Factual Examples in underline / “Facts”
  • How did industrialization change how goods were produced?
  • What combination of factors were necessary in order for industrialization to take place?
  • What “fueled” (both literally and metaphorically) the Ind. Rev.?
  • How did factories change the nature of labor itself?
  • Where did factories (and the IR start) and where/how did the factory system spreadin this time period?
  • What was the Second Industrial Revolution? How did it affect the role of science in larger society?
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  • Industrialization fundamentally altered the production of goods around the world. It not only changed how goods were produced and consumed, as well as what was considered a “good,” but it also had far-reaching effects on the global economy, social relations, and culture.The Industrial Revolution meant goods were produced by machines and newsources of energy instead of by people utilizing the domestic system.Mass productionwas initiated as workers in factories manned multiple machines and the factories used assembly lines to speed up production.
  • In Britain, industrialization largely occurred because of the agricultural revolution. Improved agricultural productivity in Britain occurred because the parliament redistributed and consolidated lands (the enclosure act) and science led to more effective use of land (the optimum crop rotation system, fertilization, scientific breeding, and more efficacious technology like the seed drill, improved ploughs, the sickle, and the scythe). Urbanization followed because fewer people were needed on farmsand an increasing population, so people moved to urban areas looking for jobs. The population was increasing because of availability of new foods from the Columbian Exchange and falling death rates because of cleaner, better public health measures. The rural to urban movement created a labor pool that factories could utilize.
  • Another factor were European colonies established via superior ships and weaponry. This helped industrialization because imperialism provided access to foreign resources like markets and raw material. For example, can European nations controlled the Spice IslandsandBritainseized India’s cotton textile industry. The accumulation of capital was also necessary as industrialization required skilled workers to invent machines and wealthy entrepreneurs to finance the inventions (ex: Bolton and Watt).
  • Europe’s location on the Atlantic Oceanand an abundance of rivers and canals were factors that led to the rise of industrial production. The close proximity to coasts meant water could be used to generate energy and power the machines. Also, the Atlantic Ocean served as a medium to transport produced goods. The geographical distribution of coal, iron, and timber meant available materials for railroads, machines, and a way to power steam engines. Governments invested in legal protection of private property?
  • The development of machines, including steam engines and the internal combustion engine, made it possible to exploit vast new resources of energy stored in fossil fuels, specifically coal and oil. The “fossil fuels” revolution greatly increased the energy available to human societies. The Industrial Revolution was fueled by the British government for it was pro-business so there were relatively fair and light taxes. Also, banking and credit facilities provided funding for innovations. The scientific revolution (partly caused by the Renaissance) also fueled the Industrial Revolution.
  • There was a shift from agricultural labor to industrial labor. Before the Industrial Revolution, goods were produced at home. In this domestic system, an individual received payment based on the quantity he/she made. After the Industrial Revolution, a wage system developed where an individual received payment based on an hourly or daily wage; wages were per time rather than per item. Because of machines, fewer people were needed to produce an item. The development of the factory system concentrated labor in a single location and led to an increasing degree of specialization of labor.Jobs became less diversified (e.g. a laborer would always do the same task in a factory). More women and children in the workforce developed because a single income from a father could not support the family alone. There was decreased sanitary/ safety conditions and frequent abuse to the workers in the labor force. Sometimes unfair practices were enacted like very low wages and long hours. Work was now usually based on a strict time schedule.
  • The Industrial Revolution began in Britain. As the new methods of industrial production became more common in parts of northwestern Europe, they spread to other parts of Europe and the United States, Russia and Japan. The concept of factories spread to regions that had raw materials available to them. There was also an increasing need (due to rapid population growths and increasing global trade) for certain products, so places that could produce those products reliably and quickly were necessary to meet that demand.
  • The initial Industrial Revolution was from about 1750 to 1860. The Second Industrial Revolution began in 1860s and is arguably still going on. Steel chemical, and electrical inventions, and precision machinery expanded. Iron ore was converted to steel cheaply and abundantly in blast furnaces which led to higher quality, stronger steel. Chemical industries grew as synthetic substances replaced earlier reliance on natural substances. For example, synthetic dyes, explosives (from synthetic nitrogen) soap and glass (made from soda), drugs, insecticides, perfumes, and cosmetics were developed. Electric inventions meant metal conductors that utilized oil, natural gas, solar, hydro and nuclear power to generate electricity. Some electric inventions include lightbulbs, fuses, sockets, switches, and circuit breakers. Precise machinery include the machine gun, the diesel engine, and automobiles.
  • The Second Revolution saw new producers as well. Germany had large cartels, or collaborative business associations. Huge corporations integrated the entire process of production from raw material to finished product. Artisans were displaced in favor of factories which could mass produce items.
  • Science in society was utilized to a greater extent to improve the quality of life. Perfumes and cosmetics were desired by working class women. The sewing machine, typewriter, and clocks all revolutionized how society functioned. Scientific methods became more accepted by factory owners. New ways and techniques to better improve production started to have a scientific framework. Accepting scientific practices slowly trickled down to the lower class. It also caused a dispute between religion and reason.
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  • Domestic (“putting out”) system
  • Machines
  • Mass production
  • Agricultural Revolution
  • Enclosure act
  • Urbanization
  • Colonies
  • Atlantic Ocean
  • steam engine
  • fossil fuels
  • internal combustion engine
  • scientific revolution
  • Domestic system, “putting out”
  • Wage system
  • factory system
  • specialization of labor
  • 2nd IR
  • Steel
  • Chemicals
  • Electricity
  • Scientific method

  • How did the Ind Revinfluenceworld trade overall?
  • What raw materials were commonly exported to industrialized areas?
  • As industrial production rose what happened to handicraft industries such as the cotton textile industry in India?
  • What “new” markets did industrialized states look for/create for their exports?
  • How did industrialization lead to the development of extensive mining centers?
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  • The Industrial Revolution meant goods could be produced effectively for mass consumption. European powers, such as Britain, sought areas in the world to serve as markets and places to acquire raw materials for the factories. Regions became subjected to neocolonialism, or foreign economic control which led to indirect foreign political control. New technology such as railroads and steam power lowered transit time (therefore, exportation of perishable food products became possible) Overall, new patterns of global trade and production developed and further integrated the global economy.
  • The need for raw materials for the factories and increased food supplies for growing population in urban centers led to the growth of export economies around the world that specialized in mass producing single natural resources. (such as cotton, rubber, palm oil, sugar, wheat, meat or guano) The profits from these raw materials were used to purchase finished goods.Coal, iron, cotton, food (wheat or livestock for butchering purposes), labor, wood were also exported to industrialized areas. Gold, diamonds and minerals were also extracted from Africa to be utilized by industrialized areas.
  • Handicraft industries were consumed by European factories. Because goods could be mass produced quicker than when an individual produced the goods, artisans suffered and thus the significance of the guild system was diminished. In the case of the cotton textile industry, Britain exported cotton from India to create the textiles in Britain. The finished textile would then be sold back to India. Since British factories were able to produce so efficiently, the Indian industry could not compete and eventually succumbed to the new system.
  • Industrialized states often targeted colonies to market their goods to. In the mid-19th century, American commodore Matthew Perry contributed to the opening of Japan to industrialized states. Europe wanted China as a market but the Qing Dynasty limited trade for fear of the threat of Christianity, a superiority complex (Qing officials believed Europe did not have anything of value, and the dismay caused by opium. Britain mass produced opium, a highly addictive and destructive drug, in Asian colonies. British merchants sold Chinese citizens the drugs to the dismay of China’s government. The selling of opium led to the Opium Wars in the mid-1800s. The Qing Dynasty were too weak to win against the British. The Treaty of Nanjain was eventually developed that opened more ports which led to China succumbing to more western, industrial power involvement.Hong Kong became a British territory in 1898 as a result of the Opium Wars.
  • The need for specialized and limited metals for industrial production, as well as the global demand for gold, silver, and diamonds as forms of wealth led to the development of extensive mining centers. Explorers circa 1830 used quinine pills to prevent the Malaria disease prominent in central Africa (an aspect that had prevented previous attempts of exploration). They made it into the continent’s interior and discovered mineral wealth, gold and copper. Diamonds were found in South Africa. A Cape (South Africa) to Cairo (North Africa) connection was taken up by Cecil John Rhodes as a call for the “Civilization” of Darkest Africa. To Rhodes civilization meant the exploitation of the mineral wealth of the vast interior of the African continent. Rhodes had become a mining magnate by consolidating the diamond diggings. During the time period of 1750 to 1900, South Africa had a populous mining industry. This was mostly because there was such a high demand for gold and silver by Europeans.
  • Diamond deposits weren’t found in South Africa until the late 1800s in Kimberly, South Africa. This discovery was also called the Kimberly Diamond Strike of 1868. Cecil Rhodes, an Englishman, established DeBeers Consolidated Mines 22 years after diamonds were found. Gold was first mined by Europeans in 1866 near Johannesburg. South Africa had almost a half of the world’s know gold reserves.
  • During the time period between 1750 and 1800 industrialization became prominent thus meaning the need for raw products became ever more popular. One of the prized products was copper, which became an abundant resource after its discovery in the El Boleo Mine in Santa Rosalia, Baja California.
  • The leader at the time, Porfirio implemented a railroad system which greatly helped the transportation of copper and he also encouraged foreign investment which benefited copper mining.
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  • At first a continuation of mercantilism
  • Cash crops such as cotton, rubber, palm oil as well as guano, wheat, and meat
  • Artisans suffered
  • Guild system diminished
  • Cotton textile in India
  • Japan
  • Matthew Perry
  • Opium Wars
  • Treaty of Nanjain
  • Qing Dynasty
  • Hong Kong
  • Cecil Rhodes and South African diamond mines as well as gold mines
  • Copper mines in Mexico

  • How did the Ind Rev affect the scale of businesses and overall economic productivity?
  • How did intellectualsexplain & industrialists legitimize the economic changes of the Ind Rev
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  • How did financial instruments expand to facilitate investments?
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  • The global nature of trade and production contributed to the proliferation of large scale transnational businesses (such as bicycle tires, the United Fruit Company or the HSBC-Hong Kong & Shanghai Banking Corporation). Improved technology (phones, railways) meant commerce and communication could take place at a faster rate, facilitating an increase in economic productivity. Advancements in technology also meant a larger scale of business because services were no longer confined to one region; a business could establish consumers to a greater extent.
  • A United States owned company based in Latin America that grew tropical fruits (primarily bananas) that were shipped to and sold mainly in the United States. Mascot was Chiquita Banana, based off of Carmen Miranda to soften the image of the neocolonialism company in Latin America.
  • A prominent bank founded in 1865 when Hong Kong was a colony of the British Empire, with the main branch in Hong Kong, with secondary branches in Shanghai and Japan. Since China's ports were open after the Opium War, Britain wanted an easy and continuous flow of opium trade between China and Europe, and the HSBC allowed that. The HSBC gave a stable cash flow and trading link between China, Europe, and Japan, as well as allowing entrepreneurs to draw investments from the bank to support and fund the local economy.
  • The ideological inspiration for economic changes lies in the development of capitalism and classical liberalism associated with Adam Smith and John Stuart Mill. Smith laid the foundations of classical free market economic theory. The Wealth of Nations was a precursor to the modern academic discipline of economics. In this and other works, he expounded upon how rational self-interest and competition can lead to economic prosperity (laissez faire and capitalism). Originally, Jeremy Bentham, the founder of Utilitarianism, defined utility as the aggregate pleasure after deducting suffering of all involved in any action. John Stuart Mill expanded this concept of utility to include not only the quantity, but quality of pleasure, while focusing on rules, instead of individual moral actions. Classical liberalism is a political ideology and a branch of liberalism which advocates civil liberties and political freedom with representative democracy under the rule of law and emphasizes economic freedom.
  • As a result of the Industrial Revolution, corporations, stock markets, insurance, and gold increased. The global world was becoming more tied together and these financial instruments aided and encouraged foreign involvement and activity.
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  • Multinationals
  • United Fruit Company
  • HSBC-Hong Kong & Shanghai Banking Corp.
  • Adam Smith’s Wealth of Nations and laissez faire capitalism
  • John Stuart Mill and classical liberalism (freedoms)
  • Corporations (limited liability)
  • Stock markets
  • Insurance
  • Gold standard

  • What were the most important developments in transportation during the Ind Rev?
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  • The most important developments in transportation during the Industrial Revolution include railroads, telegraphs and the telephone, and the Suez Canal and the Panama Canal. The railroads were the fastest form of transportation that the world had ever seen. They allowed huge heavy loads to travel far distances in a short period of time. The telegraph and the telephone allowed information to be spread quicker and more efficiently. The Suez Canal was a huge development because ships could now could straight from the Mediterranean Sea to the Indian Ocean. They no longer had to go around the whole continent of Africa. The Panama Canal saved ships from having to go around all of South America. Both canals cut down the time it took to travel the oceans immensely. The Canal du Midi was also a major canal build during the period, and it went through the Atlantic Ocean to the Mediterranean Sea.Railroads and canals made it easier to import and export goods and telegraphs increased communication between countries and countries and their citizens overseas.
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  • RRs
  • Telegraph then later telephone
  • TWO major canals

  • What were the responses to the problems of industrialization? What alternative visions of society developed?
  • How did capitalist societies reform themselves?
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  • In industrialized states, many workers organized themselves to improve working conditions, limit hours, and gain higher wages, while others opposed industrialists’ treatment of workers by promoting alternative visions of society, including Marxism.
  • Socialism arose in the 1800s as a reaction to the appalling conditions that factory workers experienced. These revolutionary movements critiqued the money economy and advocated for a utopian society in which workers, not wealthy owners, ran the economy. Karl Marx in the Communist Manifesto advocated overthrowing the moneyed classes and setting up a workers' state.
  • An anarchist is any person opposed to any formal government. During the rule of Alexander II, Russia became increasingly unstable because of his attempts to moderate changes by balancing westernization with traditional Slavic society. The emphasis on Russian nationalism encouraged them to assert their own identities. These anarchist groups had diverse goals and philosophies, but considered westerners to be materialistic and morally inferior to Russians. The Russian intelligentsia (educated individuals) wanted political freedom and deep social reform while maintaining a culture different from the west and distinctly Russian.
  • Bismarck of Russia established the very first welfare state, created a retirement age requirement, set up a pension for the elderly, and instituted national health care in 1883. The Medical Police were in charge of inspecting different places to be sure they were up to code. Places like schools or jails or churches. They were also in charge of making sure all sewage, garbage disposal, and water systems were clean.
  • The union movement advocated for the organization of workers so they could negotiate for better wages and working conditions. Workers and factory owners often clashed in violent conflicts, as factories tried to prevent workers from unifying. Some workers became more radicalized and violent in response.
  • Suffrage is the right to vote or run for office in a government. In 1832, Parliament reduced the proper qualifications to vote, paving the way for universal male suffrage. It is important because it lead to the complete suffrage of citizens, but also shows the extent to which these reforms were carried out post industrialization.
  • State pension and public health are both examples of government entitlement programs that ultimately increase the welfare of society, especially that of the working class. Otto Von Bismarck introduced these concepts to Germany along with medical insurance, unemployment compensation, and social security. These social reforms are important because they are inspired by socialism, which attacked the problems that came in the wake of industrialization and ultimately worked to provide security for the working class.
  • Public education is the providing of education to the general population, especially children. Public education grew in Europe in response to the abolishment of child labor. In 1881, attending school became a legal requirement for children in Britain, and many other states followed suit in this legal requirement. It is important because it shows the redefined role of children, as well as the reconstruction of the traditional social structure in an industrialized society.
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  • Socialism
  • Marx—Communist Manifesto
  • Anarchism
  • Labor/social laws
  • Labor unions
  • Expansion of suffrage in Britain
  • State pensions and public health in Germany
  • Public education