New Business Strategies Emerge

Corporation shared ownership of a business What are 2 advantages and 2 disadvantages of corporations? Two advantages of corporations are: Two disadvantages are:

Horizontal Integration to consolidate many of the same firms into one business Describe an example of horizontal integration using McDonald’s and fast food restaurants. An example of horizontal integration would be if…

Vertical Integration gaining control of the different businesses that make up all the phases of a product’s development. Draw a picture or write a description of vertical integration with Nike tennis shoes. Four parts of production must be included.

Monopoly complete control by one company over the sale of a product or service. What are some disadvantages or advantages of monopolies? Include at least 4 ideas. Think about entrepreneurs, labor, consumers.

Laissez faire capitalism  “let it be”  No gov’t interference in the market  Competition best for productivity and economic growth  No laws that will restrict business growth or interfere with free competition of business  Social Darwinism- people/businesses that win in this game do so because they are “most fit” The U.S. economy is no longer laissez faire because the government does make laws that regulate business practices. Give 2 specific examples of laws our government enacts to regulate business practices.

Standard Oil Co.

Government Regulation Sherman Anti-Trust Act (1889)-Federal Law Outlawed corporations (trusts) that restrained interstate commerce (trade) In reality- big business had so much political power that – It was rarely enforced until the 1900s – Usually it was used against labor unions, not against businesses

The ‘Bosses’ of the Senate

The Protectors of Our Industries