APUSH Review: Pools, Integrations, and Interlocking Directorates!

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Presentation transcript:

APUSH Review: Pools, Integrations, and Interlocking Directorates! www.Apushreview.com APUSH Review: Pools, Integrations, and Interlocking Directorates! Everything You Need To Know About Business Practices To Succeed In APUSH

Pools! What is it? Firms agreed to divide an area amongst themselves Share in the profits Used by Railroads Outlawed by the Interstate Commerce Act (1887)

Vertical integration! Made popular by Andrew Carnegie and his steel company What is vertical integration? When a business controls ALL aspects of production Example Carnegie Steel – Controlled production from beginning to the end Why was this used? Reduce costs, keep everything “in house” Was this legal? Yes!

Horizontal integration! Popularized by John D. Rockefeller and his Standard Oil Company What is it? All businesses within an industry join together and create a monopoly Example: Rockefeller’s Standard Oil Controlled most of the oil industry at one time Was this legal? Eventually, no!

Interlocking Directorates Popularized by J.P. Morgan What are interlocking directorates? When a board of director serves on the board of multiple, competing, companies Example JP Morgan and the banking industry Why was this used? Can control multiple businesses in the same industry Was this legal? Clayton Antitrust Act prohibited this in the same industries

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