Key Concept 5.1 Industrialization and Global Capitalism / Answer
Concepts & Relevant Factual Examples in underline / “Facts”
  • How did industrialization change how goods were produced?
  • What combination of factors were necessary in order for industrialization to take place?
  • What “fueled” (both literally and metaphorically) the Ind. Rev.?
  • How did factories change the nature of labor itself?
  • Where did factories (and the IR start) and where/how did the factory system spreadin this time period?
  • What was the Second Industrial Revolution? How did it affect the role of science in larger society?
/ Industrialization allowed goods to be produced a lot faster than before. Instead of doing everything by hand, machines such as the spinning jenny were created to help. The machines worked faster than the people, so more goods were created in less time. Goods were produced in the masses and became much cheaper than before.
Industrialization happened because of many factors: geographical distribution of coal, iron, and timber, European location on the Atlantic ocean, population rapid increase, increase agricultural productivity, legal protection of private property, abundance of rivers and canals, urbanization, access to foreign resources, and accumulation of capital. The increase in agricultural productivity is also known as the agricultural revolution that happened before industrialization. This revolution helped because less people were needed to make the food for the country, so they could move to the cities and become the factories labor source. The accumulation of capital came from the numerous colonies being exploited.
The Industrial Revolution was fueled by fossil fuels: coal and oil. The creation of both the steam engine and the internal combustion engine allowed theses new sources of energy to be used. The steam engine was invented by James Watt and it runs on steam while internal combustion engines usually run of fossil fuels or gasoline.
Factories moved the nature of labor away from the putting out system and towards the factory system and the specialization of labor. The putting out system was when people would manufacture goods inside their home and were paid by the amount of the good they created. As factories came along, so did a new labor system, the factory system. This system relied on machines. Instead of working in their homes, the workers came to the factory. Factories also increased the specialization of labor also known as the division of labor. The putting out system had some of it such as families being shoemakers or candle makers, but inside the factory it became much more specialized. Instead of creating one whole good, a person would just operate a machine that might make half of the good. For example, before a person might create the whole shoe, but now they just operate the machine that makes the sole of the shoe.
The Industrial Revolution and factories mostly started in northwestern Europe mainly Britain. They spread to the United States, other parts of Europe, and Japan. The United States borrowed some techniques from Britain, but they also created inventions of their own such as the Cotton Gin invented by Eli Whitney. France and Germany started to adopt Britain’s new ways. Germany launched a program of industrial and commercial growth. Japan’s Emperor sent scholars away to study western industry. They came back to Japan and started a program based on the west. It spread greatly through trade connections and imperialism.
The Second Industrial Revolution is the latter part of the Industrial Revolution that was centered on steel, chemicals, and electricity rather than textiles, iron and steam engines. Many railroads were created and there was a huge increase in iron and steel production.
During the second revolution, science became a part of modern warfare. Science was now being used to make chemical weapons and in guns. Science became a larger part of society. /
  • steam engine
  • fossil fuels
  • internal combustion engine
  • factory system
  • specialization of labor
  • 2nd IR
  • Steel
  • Chemicals
  • Electricity

  • How did the Ind Revinfluenceworld trade overall?
  • What raw materials were commonly exported to industrialized areas?
  • As industrial production rose what happened to handicraft industries such as the cotton textile industry in India?
  • What “new” markets did industrialized states look for/create for their exports?
  • How did industrialization lead to the development of extensive mining centers?
/ The Industrial Revolution influenced the growth of world trade because the factories needed raw goods from all over the globe and the growing population needed to be fed. Also the owners of the factories wanted to find new markets for their goods, so they opened up many new trading routes.
At first there were not many exports coming to the industrialized areas because the countries still practiced mercantilism and they believed that you must keep the wealth in the country. That means no imports. Then the countries moved away from that philosophy and exports came flooding in. The major exports include cotton, rubber, palm oil, guano, wheat, meat, metals, and minerals.They were the most common because they were used primarily as raw materials for the factories to be made into more complex products to be sold elsewhere for a higher price around the world.
As industrial production increased, India’s cotton textile industry decline rapidly. Around 1000 CE, India had the highest GDP (%) but as time went on and the industrial revolution happened its GDP (%) declined sharply.
Britain and France had their eyes set on opening up China, but the traditional Qing government would not budge. The British and French wanted China very badly, so they started to secretly export opium into China. Opium is a highly addictive drug created from India’s poppy seeds. China’s government pleaded for Britain to stop, but they declined and this led to the Opium Wars (1839-1842 and 1856-1860). Britain won and received open ports which led to many spheres of influence on China.
Industrialization called for specialization and limited minerals that were needed for production. There was also a global demand for gold, silver, and diamonds as form of wealth. These things combined to create the need for the development of extensive mining centers like the ones in South Africa and Mexico. South Africa is known for its diamond and gold mines. The work is very labor intensive and there have been many strikes. Cecil Rhodes owned many of the diamond mines in South African and he is the man that came up with the idea of the Cape to Cairo railroad. Mexico is known for its numerous copper mines.The copper mines had very poor conditions. Many immigrants came to work at the mines. El Boleo is one of the mines that is still in operation. It is still very prosperous. /
  • At first a continuation of mercantilism
  • Cash crops such as cotton, rubber, palm oil as well as guano, wheat, and meat
  • Opium Wars
  • Cecil Rhodes and South African diamond mines as well as gold mines
  • Copper mines in Mexico

  • How did the Ind Rev affect the scale of businesses and overall economic productivity?
  • How did intellectualsexplain & industrialists legitimize the economic changes of the Ind Rev?
  • How did financial instruments expand to facilitate investments?
/ The Industrial Revolution led to larger businesses. Without the Industrial Revolution, multinational businesses would not be possible. Multinationals are companies that have factories and braches of the companies in multiple countries. Some examples are the United Fruit Company, HSBC-Hong Kong and Shanghai Banking Corp. and McDonalds. The Industrial Revolution increased overall economic productivity.
The industrialists legitimized the economic changes by using Adam Smith’sWealth of Nations and laissez faire capitalism and John Stuart Mill and classical liberalism (freedoms). They used these philosophies to prove that the government should stay out of the economy. Laissez faire capitalism and the Wealth of Nations state that the government should not have a hand in the economy. This helped the industrialists because they got to do whatever they wanted to. John Stuart Mill and classical liberalism took it a step farther and stated that the government should not be involved at all because that would be against human rights.
Corporations created a thing called limited liability, so more people would invest. Limited liability allowed people to invest into a corporation without the risk of losing it all if the corporation failed. This expanded investment dramatically. The stock market allowed everybody to invest money into businesses. It did not have to be a lot of money, so many people invested. The creation of insurance decreased the risk of investing money. Because of this more people invested. The Gold Standard is a global standard. For the first time foreign countries could compare their currency to other foreign countries. This allowed foreign investments to be made easier and therefore the number of investments expanded. /
  • Multinationals
  • United Fruit Company
  • HSBC-Hong Kong & Shanghai Banking Corp.
  • Adam Smith’s Wealth of Nations and laissez faire capitalism
  • John Stuart Mill and classical liberalism (freedoms)
  • Corporations (limited liability)
  • Stock markets
  • Insurance
  • Gold standard

  • What were the most important developments in transportation during the Ind Rev?
/ The most important developments in transportation during the Industrial Revolution include railroads, telegraphs and the telephone, and the Suez canal and the Panama canal. The railroads were the fastest form of transportation that the world had ever seen. They allowed huge heavy loads to travel far distances in a short period of time. The telegraph and the telephone allowed information to be spread quicker and more efficiently. TheSuez canal was a huge development because ships could now could straight from the Mediterranean Sea to the Indian Ocean. They no longer had to go around the whole continent of Africa.The Panama Canal saved ships from having to go around all of South America. Both canals cut down the time it took to travel the oceans immensely.The Canal du Midi was also a major canal build during the period, and it went through the Atlantic Ocean to the Mediterranean Sea. /
  • RRs
  • Telegraph then later telephone
  • TWO major canals

  • What were the responses to the problems of industrialization? What alternative visions of society developed?
  • How did capitalist societies reform themselves?
/ The problems of industrialization led to the creation of new visions of society. One problem was the growing gap between the rich and poor. Socialism was created to try and fix this problem. The main idea was that everyone had access to all goods and the wealth would be redistributed. Communism is an extreme version of socialism. It was created by Marx in his Communist Manifesto. Marx’s ideal society was classless and equal socially and economically. He believed that the proletariat must overthrow the bourgeois for the revolution to be completed. Marx then believed communism would spread across the whole world. The most extreme vision of society isanarchism. Anarchists believe that there should be no governmental influence and the country should not be run by any sort of government.
Capitalist societies reformed themselves through many different ways. They created labor/social laws which stopped child labor, raised wages, and increased the factories safety. The governments also allowed labor unions. Labor unions were made up of the factory workers and they used these unions to get their problems through to the owners and the government. The unions gave the workers a voice. Britain expanded suffrage (the right to vote) over a long period of time through reform and representation of the people acts that would only speak for certain groups. It was not until 1918 that all men over 21 and women had the right to vote. Germany passed state pensions and worked to increase their public health. Many capitalist societies introduced public education. Free education was something new. Now almost everyone could get an education. /
  • Socialism
  • Marx—Communist Manifesto
  • Anarchism
  • Labor/social laws
  • Labor unions
  • Expansion of suffrage in Britain
  • State pensions and public health in Germany
  • Public education

  • What governments promoted their own state sponsored programs of industrialization? Assess the success of each.
  • Who in Qing China and the Ottoman Empire resisted any changes?
/ Governments that promoted their own state sponsored programs of industrialization include:
Meiji Japan- The Meiji Restoration in Japan was trying to westernize. The government sent many students to the West to learn with the intention that they would come back and help incorporate western ideas into Japan. They also brought in many Westerners to teach, mainly science, math, and technology. The Japanese government created a new western-based education system. They created many railroads, improved the roads, and got the land ready for industrialization. The government created a state-led industrialization program. The government and the zaibatsu (huge industrial and financial businesses) had lots of influence over the economy. This program was extremely successful.
Czarist Russia-Russia was never highly industrialized. Sergei Witte, a finance minister, tried to industrialize Russia with little success. He imposed high tariffs on foreign goods, improved banking, and encouraged western powers, especially France, to invest a lot of money into Russia. His program had little success. Russia was too big to be efficient and agriculture was still not prosperous. The biggest achievement in Russia’s industrialization was the Trans-Siberia railroad. It was one track that went across all of Russia, but was not very useful because it was only one track so no trains could pass, and it was frozen much of the year.
China- China’s self-strengthening movement was a response to their defeats in the Opium wars. Prince Gong was the leader of this movement and he had the support of many important governmental officials. There were still people against westernization such as Empress Cixi, but China’s defeat in the Opium Wars made the argument for industrialization stronger. The movement had three phases. Phase one consisted of the adoption of Western firearms, scientific knowledge, machines, and the training of personnel. The second phase focused on commerce, industry, and agriculture. There were many modernization projects started. Phase three lost many supporters, but the textile industry increased. All in all the self-strengthening movement was a failure. There was very little westernization and the economy never really blossomed.
Egypt- Muhammed Ali led the way to industrialization for Egypt. He sent students to Europe to study and imported many European experts to help the process begin. It was a lot like what Japan did. He started to create a modern military. He nationalized all of Egypt which meant he owned all the production of the land. He would make the people sell their goods to the government and then the Egyptian government would sell them within Egypt and to foreign markets. This proved to be successful, but Ali’s textile industry was a different story. Even though the cotton textile industry provided many jobs, it ended up being a complete failure.
Qing China was full of traditionalists and Confucian scholars who were opposed to any changes. They were scared that the changes would go against their beliefs and they would no longer be influential in the government. If the people started to practice things that went against Confucius’s teachings, they would be less likely to listen to his scholars. The people most opposed to change in the Ottoman Empire were the Janissaries. They were the elite warrior class in the Empire. The Janissaries were in charge of the huge cannons. These cannons were an important part of the Ottoman military. This led to a lot of power and influence going to the Janissaries. The Janissaries were afraid that if they Ottomans industrialize and make modern weapons, they would not be needed anymore and lose their influence in the government. /
  • Meiji Japan
  • Czarist Russia—Sergei Witte & the Trans-Siberian RR
  • China’s Self-Strengthening Movement
  • Muhammad Ali’s attempts to create a cotton textile ind in Egypt

  • How did the Ind Rev affect social and demographic characteristics?
What new socio-economic classes developed or grew in size and power?
How did the Ind Rev affect family relationships?