US History Chapter 5 Flashcards

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Questions and Answers

What is vertical integration?

The combination in one company of two or more stages of production normally operated by separate companies.

What is horizontal integration?

Combining firms in the same business into one large corporation.

What is an example of vertical integration?

A retailer like Target that has its own store brands, owning manufacturing, controlling distribution, and acting as the retailer.

What is an example of horizontal integration?

Heinz and Kraft merged into one company, valued at $46 billion. Signup and view all the answers

What is the difference between vertical and horizontal integration?

Horizontal integration consists of companies that acquire similar companies in the same industry, while vertical integration consists of companies acquiring others at different stages in the production process. Signup and view all the answers

Who implemented vertical integration?

Andrew Carnegie. Signup and view all the answers

Who implemented horizontal integration?

John D Rockefeller. Signup and view all the answers

What is a monopoly and how does it function?

When a single company achieves control of an entire market. Signup and view all the answers

What act began the building of railroads?

Pacific Railway Act. Signup and view all the answers

What 2 companies built the Transcontinental Railroad?

The Central Pacific and The Union Pacific. Signup and view all the answers

Who were the leaders of the railroads?

Union: Grenville Dodge; Central: Leland Stanford. Signup and view all the answers

Who worked on the railroads?

Union: Civil War veterans, newly recruited Irish immigrants, miners, farmers, cooks, adventurers, and ex-convicts; Central: Workers from China. Signup and view all the answers

Who was the most successful railroad consolidator?

Cornelius Vanderbilt. Signup and view all the answers

Who was Jay Gould and how does he relate to railroads?

Most notoriously corrupt railroad owner, manipulated stock. Signup and view all the answers

What is Gross National Product (GNP)?

The total value of all goods and services that a country produces during a year. Signup and view all the answers

An abundance of _____ was one of the reasons the US industrialized successfully.

natural resources Signup and view all the answers

Who was Edwin Drake?

Founder of Oil in Pennsylvania with the use of a steam engine. Signup and view all the answers

Why did the US population triple between 1860 and 1910?

More people survived because of better living conditions. Immigrants from other countries came to the US in search of a better life. Signup and view all the answers

Who was Alexander Graham Bell?

Inventor of the telephone. Signup and view all the answers

Who was Thomas Edison?

Inventor of the light bulb. Signup and view all the answers

What did George Westinghouse invent?

Air brake system for railroads. Signup and view all the answers

What is the idea of laissez-faire?

'Let people do as they choose.' Government should not interfere with the economy. Signup and view all the answers

What is an entrepreneur?

A person who organizes, manages, and takes on the risks of a business. Signup and view all the answers

What is the Morrill Tariff?

Greatly increased tariff rates to encourage domestic industry and foster high wages for industrial workers. Signup and view all the answers

The North's beliefs on the government being involved in the economy:

Wanted high tariffs and supported federal subsidies for companies building roads, canals, and railroads. Signup and view all the answers

The South's beliefs on the government being involved in the economy:

Opposed subsidies and favored low tariffs. Signup and view all the answers

To make rail service safer and more reliable, the American Railway Association divided the country into four _ ___.

time zones Signup and view all the answers

The government gave _ __ to many railroad companies to raise money to build railroads.

land grants Signup and view all the answers

What was the Credit Mobilier Scandal?

Railroad companies unjustly sold government land to farmers and paid politicians to let them do so. Signup and view all the answers

Who was James J. Hill?

Built and operated the Great Northern Railroad without any federal land grants or subsidies. Signup and view all the answers

What is a corporation?

An organization owned by many people but treated by law as though it were one person. Signup and view all the answers

What is stock?

Shares of ownership in a corporation. Signup and view all the answers

Study Notes

Integration Types

Vertical Integration: A company controls multiple stages of production, from manufacturing to distribution.
Horizontal Integration: Firms within the same industry merge to form a larger corporation.
Example of Vertical Integration: Retailer Target owns its manufacturing and distribution, alongside its retail stores.
Example of Horizontal Integration: The merger of Heinz and Kraft, worth $46 billion.

Major Figures in Integration

Andrew Carnegie: Key proponent of vertical integration in steel production.
John D. Rockefeller: Pioneered horizontal integration in the oil industry.

Monopoly and Regulation

Monopoly: A market structure where a single entity controls an entire market.
Pacific Railway Act: Legislation that promoted railroad construction across the U.S.

Transcontinental Railroad

Companies Involved: Central Pacific and Union Pacific built the Transcontinental Railroad.
Leaders: Grenville Dodge led the Union Pacific; Leland Stanford headed the Central Pacific.
Labor Force: Union Pacific employed Civil War veterans, Irish immigrants, and others; Central Pacific relied on Chinese workers.

Economic Growth Factors

Cornelius Vanderbilt: Most successful railroad consolidator, known for his strategic business acquisitions.
Jay Gould: Notorious for corrupt practices in the railroad industry, including stock manipulation.
Gross National Product (GNP): Total annual value of a country's goods and services.

Industrialization Influences

Natural Resources: Abundant natural resources were crucial for U.S. industrial growth.
Edwin Drake: Pioneered oil drilling in Pennsylvania using steam engine technology.

Population Growth

The U.S. population tripled from 1860 to 1910 due to improved living conditions and immigration.

Innovations and Inventors

Alexander Graham Bell: Invented the telephone.
Thomas Edison: Known for developing the light bulb.
George Westinghouse: Created the air brake system for railroads.

Economic Philosophy

Laissez-faire: Advocates minimal government intervention in the economy.
Entrepreneur: A person who manages and assumes the risks of a business.

Tariffs and Economic Policy

Morrill Tariff: Increased tariffs to boost domestic industry and worker wages.
North's Economic Beliefs: Supported high tariffs and government subsidies for infrastructure development.
South's Economic Beliefs: Opposed subsidies and favored low tariffs.

Railroad Regulation and Safety

The American Railway Association established four time zones to enhance rail service safety and reliability.

Government Involvement

Land Grants: Provided by the government to railroad companies to finance construction.
Credit Mobilier Scandal: Involved corrupt practices where railroad companies sold government land and bribed politicians.

Key Contributors to Railroads

James J. Hill: Built the Great Northern Railroad without federal land grants or subsidies.

Corporate Structure

Corporation: A legal entity owned by multiple shareholders treated as a single entity for liability and taxation purposes.
Stock: Represents shares of ownership in a corporation.

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Description

Explore key concepts from US History Chapter 5 with these flashcards. Learn about vertical and horizontal integration, along with real-world examples to enhance your understanding. Ideal for students looking to reinforce their knowledge of historical business practices.