1. How did horizontal integration change the way business was done in America? 2. Which of the following was the main policy of government toward big business in the late 1800s? 3. What was one effect the growing railroad industry had on the country?

History · High School · Wed Jan 13 2021

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  1. Horizontal Integration and Business in America: Horizontal integration refers to the strategy of merging or acquiring similar firms in the same industry. It changed the way business was conducted in America during the late 19th century by consolidating companies within the same industry under a single ownership or control. This consolidation led to the formation of large, powerful corporations that controlled significant segments of the market. It often resulted in increased efficiency, lowered competition and enhanced market power for these corporations. For consumers, it sometimes meant fewer choices and potentially higher prices due to reduced competition.
  2. Government Policy Toward Big Business in the Late 1800s: The main policy of the government toward big business during this time was largely characterized by a laissez-faire approach, emphasizing minimal government intervention in economic affairs. This period, known as the Gilded Age, saw limited regulation of big businesses. The government, for the most part, adopted a hands-off approach, allowing corporations to operate with minimal interference. This policy stance favored the growth of big business, contributing to the rise of trusts and monopolies, which eventually led to concerns about their influence and power over the economy.
  3. Effects of the Growing Railroad Industry on the Country: The expansion of the railroad industry had profound effects on the United States during the 19th century:
  • Economic Growth: Railroads facilitated the movement of goods, people and raw materials across the country, significantly boosting economic growth. They connected previously isolated regions, enabling the expansion of markets and trade.
  • Industrialization and Urbanization: Railroads played a crucial role in supporting industrialization by transporting raw materials to factories and finished goods to markets. They also spurred the growth of cities and towns along their routes, leading to urbanization and the development of new industries.
  • Social and Cultural Changes: The railroads transformed travel and communication, making transportation faster, cheaper and more accessible. They facilitated the movement of people, ideas and cultures, contributing to the integration and interconnectedness of the nation.
  • Land Expansion and Settlement: Railroads encouraged westward expansion by providing easier access to previously remote areas. They played a pivotal role in opening up the West for settlement, leading to the development of new territories and states.

These developments, driven by the growth of the railroad industry, had far-reaching implications for the economy, society and the overall development of the United States during the late 19th century.