Recipe for Industrialization 1. Capital (wealth) 2. Powerful Navy 3. Railroads 4. Colonies 5. Technology 6. Growing Population 7. Raw Materials 8. Markets 9. Freedom from foreign invasion 10. Pro-Business Environment

Capital (wealth) Means of production Wealth Land Labor Machinery Raw Materials Wealth Willingness to invest Ability to invest Monetarily Governmentally

Powerful Navy Must protect trade routes Raw materials coming into mother country Finished products going to market Any disruption in trade can plunge the country into economic ruin

Railroads Necessary to have a reliable/elaborate/efficient transportation system taking goods/raw materials to markets and factories

Colonie$ Source of markets to buy finished goods Source of raw materials to manufacture finished goods

Technology Science applied to Business Steam power, Electricity, Iron/steel, railroads must have the intelligencia to apply science to business

Growing Population Source of cheap Labor for factory system If population is not growing, labor is not cheap

Raw Materials Natural resources to produce finished goods Wood, iron ore, coal, cotton, wool, etc. If not in mother country, must be imported from colonies more expensive

Markets Places to exchange finished goods for raw materials or other needed finished goods Usually colonies

Freedom from Foreign Invasion Industry is sensitive must have a stable home environment in order to survive

Pro-Business Environment Government must be sensitive to the needs of industry provide laws that allow private enterprise/investment of wealth Less restrictive: limited taxes on investment Laissez Faire

Where does Industrialization Begin? Why? Britain All the ingredients for industrialization existed in Britain Capital: aristocracy and middle class had wealth for investment Powerful Navy: most powerful in the world to protect trade Transportation system: Railroads Colonies for raw materials and markets for finished goods Growing population that was needed for cheap labor supply. Government was pro-business: Lassez-Faire

Secondary: Manufacturing Types of Industry Tertiary: Service Secondary: Manufacturing Primary: Agriculture