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THE SECOND INDUSTRIAL REVOLUTION ( 1870-1914) - Coggle Diagram
THE SECOND INDUSTRIAL REVOLUTION ( 1870-1914)
CHARACHTERISTICS
also known as the Technological Revolution
Rapid industrialisation due mainly to the increase in the importance of the financial sector in industry
the rise of finance capitalism
INNOVATIONS AND CHANGES
increase in production
New technological advances
increase in production and industrial development
improvement of the Bessemer converter
One of the most significant innovations
This helped lower the cost of producing steel, which was an important material for railways, cars and skyscrapers
Other important innovations
dynamite
stainless steel
artificial fibres
New sources of energy
New sources of finance
A joint-stock company
was a company made up of individuals who each contributed a part of the capital
Each investor bought shares in the business, and received a proportional part of the profits or losses.
The bank
lent money to businesses in return for interest
Banks started to buy shares in businesses, and became investors
This led to a union between financial and industrial capital
The stock exchange
Was a marketplace where shares in companies were bought and sold
New industries
New business structures
Businesses joined to become associations in order to reduce competition by
establishing fixed prices
limiting production
dividing the market between them
Structures
Cartels
horizontal associations of different companies working in the same industry
they made collective decisions about production and prices
Trusts
vertical associations formed by various companies working in different industries
they used their size to control the market for their products and eliminate their competitors
Holding companies
large financial companies that earned profits by buying and holding shares in other companies