1. Lesson 40 SS8E1, SS8E3.a, b, c

2. SS8E1 The student will give examples of the kinds of goods and services produced in Georgia in different historical periods. SS8E3 The student will evaluate the influence of Georgia's economic growth and development. a. Define profit and describe how profit is an incentive for entrepreneurs. b. Explain how entrepreneurs take risks to develop new goods and services to start a business. c. Evaluate the importance of entrepreneurs in Georgia who developed such enterprises as Coca-Cola, Delta Airlines, Georgia-Pacific, and Home Depot. EQ: What goods and services are produced in Georgia and how did entrepreneurs help with such products?

3. Throughout its history, Georgia’s economy has been based on producing goods. Its first products were farm products. During the 18 th century, common crops in Georgia were rice, sugar cane, and indigo. Cotton farming came later in the 1700s. Cotton was the main crop until the 1920s. Today, farming is not the main source of Georgia’s economy. The economy does still include crops including cotton, peaches, corn, tobacco, and peanuts.

4. Manufacturing is an important part of Georgia’s economy today. The textile industry began in the 1830s and grew after the Civil War. Products included cottonseed oil, cattle feed, and fertilizer. World War II increased the demand for goods. Manufacturing expanded, including the variety of goods. Today, Georgia products include textiles, transportation equipment, processed foods, chemicals, paper, and plastic. Services are also part of Georgia’s economy. These include legal advice, computer work, trade, finance, real estate, and construction.

5. Entrepreneurs Georgia began to industrialize in the early 19 th century. Entrepreneurs emerged during this period. An Entrepreneur is a person who takes the risk to start up a new business. Expenses are the costs for businesses to produce goods or services. The money a business receives from consumers is used to pay its expenses. Remaining money is called a profit. Profit is the main incentive, or reason, for starting a business. Entrepreneurs look for new businesses and ways to make a profit. They help expand and develop the economy.

6. Georgia manufacturing began with the textile industry in the 1830s. Risk is starting a business. An entrepreneur is a risk taker. An entrepreneur invests money in a new business, but cannot know if it will be profitable. A business may lose money. An entrepreneur will research a new business idea to find out the chances of success. Entrepreneurs and their businesses help Georgia’s economy. Coca-Cola, Delta Airlines, Georgia-Pacific, and The Home Depot are examples of Georgia businesses that were started by entrepreneurs.

8. Coca-Cola The Coca-Cola Company makes many beverages, but best known for its namesake Coca-Cola. Coke is one of the most familiar products in the world. The company was started in the 1880s by a Georgian entrepreneur named John Smith Pemberton. Pemberton worked as a pharmacist. He created the cola formula and sold it as a human tonic. He had to compete with other tonics that were popular at the time.

9. Delta Air Lines Delta Air Lines is one of the largest airlines in the country. Delta began as an aerial crop dusting service, which sprayed farm crops with chemicals and fertilizer. The company was started in the 1920s by an entrepreneur named Collett E. Woolman. Woolman worked to expand Delta to offer passenger and mail services. In 1929, Woolman bought three planes and started flying passengers between Texas and Mississippi.

10. Today, Delta flies passengers all over the world. When Woolman started Delta as a passenger service in the 1930s, his small company had to compete with major airlines. The U.S. government began controlling the airline industry during that time. The government set ticket prices, flight routes, and schedules. This government control helped Delta to compete and become successful.

11. Georgia-Pacific Georgia-Pacific is a paper company based in Atlanta. It is one of the world’s top producers of tissue, pulp, paper, packaging, and building goods. The company was the idea of an entrepreneur named Owen R. Cheatham. Cheatham started the company in 1927 as a small lumber mill. He took the risk to expand his mill into a larger business. By 1938 the company was running five lumberyards in the South. In 1947, Georgia-Pacific bought a lumber mill on the Pacific Coast. The company continues to be successful and produce a wide assortment of goods.

12. The Home Depot The Home Depot is the world’s largest chain of home improvement stores. It started in 1978 by entrepreneurs named Bernie Marcus and Arthur Blank. Before The Home Depot opened, hardware stores were specialized. A consumer might have to visit many stores to buy the materials needed for one project. Marcus and Blank wanted their stores to sell all of the possible materials a person might need. Operating on a large scale allowed prices to be low and the stores employees were able to be experts in home improvement. The Home Depot changed the way that home improvement stores were operated.

13. SS8E1, SS8E3.a, b, c Quiz 1. The term “entrepreneur” is best defined as: A. Someone who owns a business, but does not handle its operation or management. B. A buyer of goods and services. C. Someone who takes on the operation, management, and risk of a new business. D. An employee of the airline industry. 2. Georgia-Pacific is a company known for manufacturing: A. Tissues, pulp, paper, and packaging. B. Automobiles. C. Processed meats and cheeses. D. Computers and software. 3. Which one of these ideas are BEST associated with The Home Depot business model? A. Stores that sell only local, specialized home improvement goods. B. Store employees who are new to home improvement. C. Lower prices due to a large-scale operation. D. Stores that are opened only on the weekends. 4. World War II helped Georgia’s economy because: A. Jobs were created in other countries. B. It resulted in a limited variety of goods manufactured. C. Cotton stopped being grown as a result of the war. D. The demand for goods increased, and manufacturing grew as a result.

14. Lesson 41 SS8E2.a, b

15. SS8E2 The student will explain the benefits of free trade. a. Describe how Georgians have engaged in trade in different historical time periods. b. Explain Georgia’s role in world trade today. EQ: How has Georgia engaged in trading with the world and how has that changed over time?

16. Trade is the act of buying and selling goods. When nations agree to trade with each other without charging tariffs, the act is called free trade. Free Trade makes cheap foreign foods available to consumers. It also allows industries in use their resources for production and import what they cannot produce cheaply.

17. Trade History of Georgia People have been trading in Georgia for hundreds of years. Long before Georgia was a state, Native American groups traded with each other. Trade makes a much wider variety of goods available to people. When Europeans came to the Americas, international trade came to Georgia. In the early 18 th century, Europeans took huge amounts of resources from the region for export back to Europe. Timber, plant products, and animal pelts from Georgia were all sold in Europe.

18. Large numbers of Africans were enslaved and brought to the Americas by way of Savannah, Georgia. They were traded for agricultural goods such as cotton, rice, and tobacco, which were then exported to Europe. Georgia’s plant products were in high demand in the 18 th and 19 th centuries. Slavery made goods cheap to produce and quite profitable. In 1973, the invention of the cotton gin made textile production easier. “King Cotton” then became the most important export from Georgia.

19. In the 19 th century, the textile industry also grew in Georgia. From 1840 until the Civil War, Georgia was the largest producer of cloth in the southern states. Other industries followed, such as foundries and paper mills. In the 19 th century, Atlanta, Georgia became a center of trade. During the Civil War, Atlanta’s industries grew. Railroads increased trade in Georgia, and linked the region to many markets.

20. After the Civil War, leaders in Georgia wanted to make a “New South”. They believed that for the New South to succeed, a number of goals had to be met. These goals included making peace with the North, increasing industry, and growing a wider variety of crops. Cotton was the backbone of Georgia’s economy until the mid 20 th century. In 1915, boil weevils ruined much of the cotton crop. World War I followed, causing a weakened foreign market. Low cotton prices forced farmers to grow other crops. Farming stayed important to Georgia’s economy, however, even with the decrease in cotton sales.

21. Georgia invited many large companies to base their southern offices in Atlanta. Many did, such as Sears and General Motors. These companies created more jobs and caused the city to grow even more. Atlanta’s well-developed highway system also helped trade. Like most southern cities in the mid-20 th century, Atlanta was racially segregated. Nevertheless, more blacks owned businesses there than in other parts of the U.S. Auburn Avenue was a street in a black area of Atlanta. It was a center of black culture and education. It became a heart of business for the country.

22. Georgia in Today’s World Economy World War II changed the South forever. The federal government spent billions of dollars on war industries and military installations all over the region. Atlanta in particular grew as a result of World War II. Many people moved to Atlanta from rural areas. They provided a work force for Atlanta’s growing industries. Millions of federal dollars were also spent on housing, schools and roads. Georgia-based companies such as Coca-Cola grew quickly due to the war. Atlanta in particular and Georgia as a whole emerged from World War II connected, thriving, and ready to do business with the world.

23. Georgia is still a leading state in production of farm products, but agriculture is only a small part of today’s Georgian economy. Since World War II, Georgia’s prominence as a center of international trade and commerce has continued to grow. Georgia had long been a key in regional land transport. It became a center for air traffic as well. Today, Hartsfield-Jackson Atlanta International Airport is one of the busiest airports in the world. Since the 1970s, tourism has been a key part of Georgia’s economy. Travelers are attracted by the mild climate, state parks, and historical sites.

24. Atlanta continued its rapid growth. In the 1970s and 1980s, many people moved to the area from other states and countries. People are still moving to Atlanta area looking for jobs, education, and opportunity. Corporations continue to be attracted to Georgia’s open and vigorous business climate. Today, Atlanta is one of the most important trade centers in the United States. It is widely recognized as the business capital of the Southeast and is home to companies such as CNN, Delta Airlines, and UPS.

25. SS8E2.a, b Quiz 1. How did the idea of the “New South” affect trade and industry in Georgia? A. Crops were diversified, ending the reign of “King Cotton”. B. Industries grew in Georgia, preparing the area for the industrial expansion of World War II. C. Large numbers of people from the north settled in the Atlanta area. D. It caused the Civil War to drag on, hurting southern industry. 2. Which industry contributed the most to Georgia’s economic growth in the 19 th Century? A. Transportation B. Textiles C. Agriculture D. Communications 3. Since World War II, which factor has helped expand industry the MOST in Georgia? A. Agriculture B. Education C. Tourism D. Technology 4. Which Georgia-based company grew the most during World War II? A. Coca-Cola B. Delta Airlines C. UPS D. CNN