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UNIT 5 TOPIC 7

Economic Developments in the Industrial Age H E I M L E R S H I S T O R Y. C O M

THEME : Economic Systems

LEARNING OBJECTIVE : Explain the development of economic systems, ideologies, and institutions and how they
contributed to change in the period from 1750 to 1900.

ECONOMIC DEVELOPMENTS AND INNOVATIONS

States that had long embraced the economic system of now abandoned it in favor of
Adam Smith’s .

was the economic system which championed the following tenets. First, there is only
a amount of wealth in the world. Second, a country’s portion of that wealth was measured
in and . Third, in order to accumulate more silver and gold a state had to
maintain a , by which they meant more
than . And fourth, colonies existed to the parent country by sending
and buying .

Free market economics, or , posits that there is no on the creation of wealth.

Furthermore, people should be left to make economic decisions by the forces of
and .

This economic shift led to new ways of organizing . In the last unit we talked about
who established trading posts throughout the world.

Joint-stock companies were formed by several who invested money into a company
and if the company financially, the shareholders were paid handsomely. However, the
shareholders were also responsible for the of the company if it failed.

During this period we see the rise of the descendants of joint-stock companies, namely, .

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UNIT 5 TOPIC 7

Economic Developments in the Industrial Age H E I M L E R S H I S T O R Y. C O M

THEME : Economic Systems

LEARNING OBJECTIVE : Explain the development of economic systems, ideologies, and institutions and how they
contributed to change in the period from 1750 to 1900.

ECONOMIC DEVELOPMENTS AND INNOVATIONS cont’d.

Corporations worked just like joint stock companies except they introduced the concept of
. Shareholders would share in the profits of the company, but their liability for the
company’s debts was .

Further, in this period we saw the rise of .

First, the established by the British. After the

, many British merchants flooded into China to establish trade. And quickly they decided
they needed a to finance their wares, and this bank eventually established branches in many
nations including and .

A second example of multinational corporations established during this period was the
which was a partnership between the and the .

Because these multinational corporations were in scale, they became wealthy on a scale that,
previous to this, was pretty rare.

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UNIT 5 TOPIC 7

Economic Developments in the Industrial Age H E I M L E R S H I S T O R Y. C O M

THEME : Economic Systems

LEARNING OBJECTIVE : Explain the development of economic systems, ideologies, and institutions and how they
contributed to change in the period from 1750 to 1900.

SUMMARIZE the notes from the previous pages in your own words. (2-4 sentences)

DON’T NEED TO COMPLETE THIS SECTION!

SOCIAL CONSEQUENCES OF ECONOMIC INNOVATION

With the rise of and the profusion of manufactured goods on the market came the rise of
a among the classes in many industrialized societies.

In general, standards of living . People had more income with which they
could buy goods on the market.

The industry was devoted to making people realize that they were in fact empty inside
without product X. So, you’d better buy it.

Finally, as a result of all these shifts you see the rise of a culture. Because people spent long and
dreary days working inside factories, they began to long for .

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UNIT 5 TOPIC 7

Economic Developments in the Industrial Age H E I M L E R S H I S T O R Y. C O M

THEME : Economic Systems

LEARNING OBJECTIVE : Explain the development of economic systems, ideologies, and institutions and how they
contributed to change in the period from 1750 to 1900.

SOCIAL CONSEQUENCES OF ECONOMIC INNOVATION cont’d.

became a place that people could go after work and socialize.

A new invention called the became popular among middle class folks who could afford them.

And also during this time people took their leisure by watching like
racing and .

SUMMARIZE the notes above in your own words. (2-4 sentences)

DON’T NEED TO COMPLETE THIS SECTION!

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UNIT 5 TOPIC 7

Economic Developments in the Industrial Age H E I M L E R S H I S T O R Y. C O M

THEME : Economic Systems

LEARNING OBJECTIVE : Explain the development of economic systems, ideologies, and institutions and how they
contributed to change in the period from 1750 to 1900.

RESPOND to the learning objective with an evidence-based, argumentative thesis.

LEARNING OBJECTIVE : Explain the development of economic systems, ideologies, and institutions and how they
contributed to change in the period from 1750 to 1900.

DON’T NEED TO COMPLETE THIS SECTION!

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*Advanced Placement® and AP® are trademarks registered and/or owned by the College Board, which was not involved in the production of, and does not endorse, this product.