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?
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What is the difference between vertical and horizontal integration?
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Who implemented vertical integration?
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Who implemented horizontal integration?
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What is a monopoly and how does it function?
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What act began the building of railroads?
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What 2 companies built the Transcontinental Railroad?
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Who were the leaders of the railroads?
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Who worked on the railroads?
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Who was the most successful railroad consolidator?
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Who was Jay Gould and how does he relate to railroads?
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What is Gross National Product (GNP)?
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An abundance of _____ was one of the reasons the US industrialized successfully.
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Who was Edwin Drake?
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Why did the US population triple between 1860 and 1910?
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Who was Alexander Graham Bell?
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Who was Thomas Edison?
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What did George Westinghouse invent?
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What is the idea of laissez-faire?
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What is an entrepreneur?
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What is the Morrill Tariff?
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The North's beliefs on the government being involved in the economy:
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The South's beliefs on the government being involved in the economy:
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To make rail service safer and more reliable, the American Railway Association divided the country into four _____ _______.
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The government gave _____ ______ to many railroad companies to raise money to build railroads.
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What was the Credit Mobilier Scandal?
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Who was James J. Hill?
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What is a corporation?
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What is stock?
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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.