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What was the primary use of petroleum after it was discovered?
What was the primary use of petroleum after it was discovered?
Which mineral was associated with the largest US FDI in Latin America?
Which mineral was associated with the largest US FDI in Latin America?
Which company was the dominant enterprise in the US oil industry?
Which company was the dominant enterprise in the US oil industry?
Which of the following minerals was NOT mentioned as being mined by US firms in Latin America?
Which of the following minerals was NOT mentioned as being mined by US firms in Latin America?
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What significant event related to oil took place in 1859 in Pennsylvania?1859 年宾夕法尼亚州发生了哪些与石油相关的重大事件？
What significant event related to oil took place in 1859 in Pennsylvania?1859 年宾夕法尼亚州发生了哪些与石油相关的重大事件？
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By 1907, how many foreign companies did Standard Oil control?
By 1907, how many foreign companies did Standard Oil control?
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Which of the following best describes the primary use of copper by US firms in Latin America?
Which of the following best describes the primary use of copper by US firms in Latin America?
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What role did the Standard Oil Company play in the global oil market?
What role did the Standard Oil Company play in the global oil market?
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Which family was instrumental in purchasing a Russian oil producer in 1886?
Which family was instrumental in purchasing a Russian oil producer in 1886?
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What major event led to the sequestration隔离 of German foreign assets?
What major event led to the sequestration隔离 of German foreign assets?
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What type of business structure did Deutsche Bank create in the oil industry in Rumania?
What type of business structure did Deutsche Bank create in the oil industry in Rumania?
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In 1912, which group did the Rothschilds sell their Russian oil interests to?
In 1912, which group did the Rothschilds sell their Russian oil interests to?
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Which company discovered oil in Mexico in 1908?
Which company discovered oil in Mexico in 1908?
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What was a consequence of the Soviet nationalization苏联国有化的后果 of Russian oil in 1917 for foreign investors?
What was a consequence of the Soviet nationalization苏联国有化的后果 of Russian oil in 1917 for foreign investors?
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Which European banking institution was influential in the oil industry by acquiring a controlling interest in Rumania's oil production?哪家欧洲银行机构通过收购罗马尼亚石油生产的控股权而对石油行业产生了影响力？
Which European banking institution was influential in the oil industry by acquiring a controlling interest in Rumania's oil production?哪家欧洲银行机构通过收购罗马尼亚石油生产的控股权而对石油行业产生了影响力？
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What caused short-term ventures in the petroleum sector during the early 20th century?是什么导致了 20 世纪初石油行业的短期投资？
What caused short-term ventures in the petroleum sector during the early 20th century?是什么导致了 20 世纪初石油行业的短期投资？
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What was the primary motivation for the British government to take a majority shareholding in the Anglo-Persian Oil Company in 1914?
What was the primary motivation for the British government to take a majority shareholding in the Anglo-Persian Oil Company in 1914?
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Which company made substantial investments in vegetable oil supplies for soap manufacturing before World War I?
Which company made substantial investments in vegetable oil supplies for soap manufacturing before World War I?
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In which year was oil discovered in Iraq, ending the period of intense competition for oil concessions石油特许权竞争激烈?
In which year was oil discovered in Iraq, ending the period of intense competition for oil concessions石油特许权竞争激烈?
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Which crop remained predominantly under local farming rather than being controlled by foreign companies?哪种作物仍然主要由当地种植而不是由外国公司控制？
Which crop remained predominantly under local farming rather than being controlled by foreign companies?哪种作物仍然主要由当地种植而不是由外国公司控制？
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Which company stayed independent and later became known as British Petroleum (BP)?
Which company stayed independent and later became known as British Petroleum (BP)?
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What was a significant factor contributing to the global search for supply sources during industrialization?
What was a significant factor contributing to the global search for supply sources during industrialization?
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What shift occurred in the perception发生在感知中 of oil supplies between World War I and the Great Depression?
What shift occurred in the perception发生在感知中 of oil supplies between World War I and the Great Depression?
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Which commodity's production was primarily controlled by British trading companies and integrated backwards into plantations?
Which commodity's production was primarily controlled by British trading companies and integrated backwards into plantations?
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What significant event raised fears about the exhaustion of existing oil supplies during World War I?
What significant event raised fears about the exhaustion of existing oil supplies during World War I?
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By the end of the century, which country became the largest producer of a particular crop特定作物, surpassing China?
By the end of the century, which country became the largest producer of a particular crop特定作物, surpassing China?
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What motivated the worldwide search for oil during the timeframe discussed?
What motivated the worldwide search for oil during the timeframe discussed?
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What type of investment was primarily seen in the production of vegetable oils?
What type of investment was primarily seen in the production of vegetable oils?
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What major economic event compounded复合/合成 the problem of overcapacity in the oil industry?
What major economic event compounded复合/合成 the problem of overcapacity in the oil industry?
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What was the initial financial state初始财务状况 of the Anglo-Persian Oil Company before the discovery of oil in 1908?
What was the initial financial state初始财务状况 of the Anglo-Persian Oil Company before the discovery of oil in 1908?
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What development facilitated the exploitation of natural resources in remote regions?哪些发展促进了偏远地区自然资源的开发？
What development facilitated the exploitation of natural resources in remote regions?哪些发展促进了偏远地区自然资源的开发？
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What risk factor is associated with the exploitation strategies开发策略 in mining regions?
What risk factor is associated with the exploitation strategies开发策略 in mining regions?
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What was a primary reason for the vertical integration of mining and smelting in the tin industry?
What was a primary reason for the vertical integration of mining and smelting in the tin industry?
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Why was vertical integration necessary in the tropical fruit products sector, particularly for bananas?
Why was vertical integration necessary in the tropical fruit products sector, particularly for bananas?
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What investment was critical for the successful transportation of bananas to their final destination?
What investment was critical for the successful transportation of bananas to their final destination?
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How did the growth of large vertically integrated firms in the banana industry benefit multinationals?
How did the growth of large vertically integrated firms in the banana industry benefit multinationals?
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What role did governments play in the growth of multinationals in resource investments?
What role did governments play in the growth of multinationals in resource investments?
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What is the primary factor that led to vertical integration in the mineral and agricultural sectors?
What is the primary factor that led to vertical integration in the mineral and agricultural sectors?
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How did the characteristics of Bolivian and Southeast Asian tin industries differ?
How did the characteristics of Bolivian and Southeast Asian tin industries differ?
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What characteristic of smelters冶炼厂 is noted in the content related to physical asset specificity?
What characteristic of smelters冶炼厂 is noted in the content related to physical asset specificity?
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Which of these factors is associated with opportunistic behavior in transaction costs theory?以下哪些因素与交易成本理论中的机会主义行为相关？
Which of these factors is associated with opportunistic behavior in transaction costs theory?以下哪些因素与交易成本理论中的机会主义行为相关？
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What type of ores were present in the Southeast Asian tin industry?
What type of ores were present in the Southeast Asian tin industry?
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Why is the smelting process described as challenging in this context?
Why is the smelting process described as challenging in this context?
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Which of the following best describes the relationship between the Rothschilds and Rio Tinto and the Guggenheims and Kennecott?
Which of the following best describes the relationship between the Rothschilds and Rio Tinto and the Guggenheims and Kennecott?
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What does 'physical asset specificity' refer to in the context of this discussion?在本次讨论中，“实物资产专用性”指的是什么？
What does 'physical asset specificity' refer to in the context of this discussion?在本次讨论中，“实物资产专用性”指的是什么？
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Study Notes
Natural Resources Exploitation
- Multinational investment in natural resources exploitation began early in the 19th century and grew rapidly.
- This was the first sector where entrepreneurs identified and exploited opportunities to create value across borders, driving integration during the first global economy.
- These strategies were main drivers of integration during the first global economy.
- Multinational corporations of today's industries were created in this time period.
Types of Resources
- Natural resources are categorized into two main subsections: renewable and non-renewable.
- Renewable resources include agriculture and forestry.
- Non-renewable resources include mining and petroleum.
- There are industry specific variations within both renewable and non-renewable categories.
- Minerals vary widely in availability.
- Examples of minerals include bauxite, zinc, and tin.
Origins of Mining
- Mining was one of the first activities to attract independent firms.
- From the mid-19th century intra-European mining FDI grew, taking the form of horizontal and backward vertical integration.
- FDI in mining grew massively from the 1870's, with Britain as the international center.
- Numerous independent firms were created to exploit opportunities in nonferrous metals, especially copper in Spain and the US.
- South Africa was a major magnet for foreign investment in gold and diamonds during the late 19th century.
Origins of Metal Trading
- German metal trading companies became major global players in the metal market as Europe's dependency on foreign ores and metals increased.
- These companies vertically integrated their operations on an international scale, including refining and manufacturing non-ferrous metals.
- Companies such as Metallgesellschaft*, Sohn; Beer, Sondheimer & Co.; and Aron Hirsch played major roles.
US Involvement in Mining
- Late 19th century US-based companies expanded their investments in mining and smelting activities across Canada, Mexico, and Central America.
- Major investments in Latin American countries like Chile, Peru, and Bolivia followed World War I.
- US firms also participated across a broad range of mining activities.
Petroleum (Oil)
- The US owned the oil industry
- The first oil well in the world was drilled in Pennsylvania in 1859.
- Petroleum's initial use was as kerosene for heating and lighting, later as a substitute for coal and gasoline (used in the newly invented internal combustion engine).
- The US remained the world's leading oil producing country until 1914.
Standard Oil
- Standard Oil dominated the US and global oil industry, controlling much of the pipelines and refineries in the US.
- Standard Oil became a major exporter of refined American oil.
- By 1907, it controlled numerous foreign companies.
European-Owned Oil Industry
- Before the 1970s, Western Europe had no indigenous oilfields; oil companies primarily dealt in trading and distribution.
- The Rothschild banking family established a major role in supplying and importing/refining American oil.
- Major European banks, like Deutsche Bank and Swedish Nobel, acquired leading positions in Rumania and various European countries.
World War I & Post-War Developments
- World War I demonstrated oil's strategic importance.
- Fears of oil shortages and reserves beyond Iran fueled a worldwide search for oil.
- Intense competition involved companies, backed by their governments.
- Discoveries in Saudi Arabia and Kuwait occurred in 1938.
Renewable Resources
- Foodstuffs like wheat were major commodities.
- British companies invested in cattle ranges in the US, owning major properties in Texas, Wyoming, Colorado, and New Mexico.
- Major US meat packing companies (Armour, Swift) established packing plants and dominated US beef exports.
Rubber
- The demand for rubber grew significantly leading to worldwide investment.
- British trading companies expanded into plantation rubber, acquiring estates and creating free-standing companies.
- By 1914, Southeast Asian countries held two-thirds of the world's rubber output.
- US companies (like Dunlop) and other manufacturers, such as Firestone and Goodyear, acquired interests in plantations in countries like Malaya, Sumatra, and the Philippines.
Bananas
- US-owned United Fruit (later Chiquita) controlled the world banana export trade in the interwar years.
- Other US companies, such as Standard Fruit, also had substantial control.
Cotton, Tobacco, and Coffee
- Cotton, tobacco, and coffee production remained largely in the hands of local peasants and farmers.
- Foreign companies focused on marketing and processing these commodities.
- There was a mix of investment in production and intermediary trading for vegetable oils .
Determinants
- Entrepreneurship, technology, and risk were factors.
- Internalization factors played a part, especially transactions costs theory, related to physical assets.
- Concessions and politics influenced the growth of multinationals through relations with governments, including those involved in colonial administrations.
Risk
- Mining as an industry is a high risk sector
- There are uncertainties related to exploration.
- Completion time is an unknown factor when constructing a mine or an oilfield.
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Description
Test your knowledge on the historical significance of petroleum and mining industries in Latin America. This quiz covers major events, key companies, and foreign investments, particularly focusing on Standard Oil's influence. Explore the pivotal moments that shaped the relationship between the US and Latin America's natural resources.
