1. American production & Distributing Goods

2. Mass Production
Gross Domestic Product (GDP) is the value of all goods and services produced annually in the U.S.
Used as a measure to tell how well the U.S. economy is performing
U.S. is capable of such an enormous output because of mass production- the rapid production by machine of large numbers of identical objects
Requires many large, complex machines and vast amounts of power

3. Mass production
Eli Whitney’s inventions and ideas made mass production possible
Created a system of interchangeable parts- instead of creating the whole product by hand, mass produce individual parts and put them together
Makes production much quicker and prices much lower
Whitney’s methods became the basis for all mass production

4. Mass Production
Machine Tools- machinery built to produce parts that are exactly the same
Interchangeable Parts- individual parts that were interchangeable and fit any similar product
If a part broke or wore out, it could be replaced instead of buying an entirely new product

5. Mass production
Division of Labor- creation of products was divided into several tasks among various workers
Each worker became a specialist at a certain part of the job
Specialization sped up the entire production process

6. Power Sources Early factors used water power
Always located near rivers or streams
Steam power replaced water power in the late s
Continued to be the leading source of power during the 1800s
Internal combustion engine replaced steam by the late 1800s, early 1900s
Much more powerful and efficient
Electricity has contributed most to modern mass production
Allowed factories to stay open 24/7

7. Modern Mass production
Assembly Line- uses machines and workers to move a product through stages of production until it is completed
Made possible by mass machinery, specialization of labor, and interchangeable parts
Henry Ford used Eli Whitney’s ideas to pioneer the use of assembly lines in his factories

8. Mass production in the world
Mass production techniques are used more efficiently by some countries than others
Doesn’t work well in command economies
Lack of profit motives discourages people from working hard and increasing productivity
Less productivity = less money available to modernize/expand industries
Possibility of making a profit encourages new innovations in production and marketing

9. Distribution The process of moving goods from manufacturers to markets
Two sides: transportation and marketing
Transportation moves goods, marketing convinces people to buy those goods
Development of transportation made it possible for American businesses to sell goods throughout the country

10. Railroads
Growth of American society and industries directly influenced by railroads
Chief method of transportation for over a century
Had to start competing with trucks, buses, automobiles, and planes
Today, carry a much smaller percentage of passengers and freight in the country

11. Railroads Many railroads went out of business in the 1960s-1970s
Many of tracks and trains in the U.S. are in bad condition
Not as fast or modern as railroad systems in other countries
Railroads still important part of country’s transportation
Carry bulk cargo, raw materials, natural resources
Very cheap source of transportation

12. Air Transportation
Modern research, equipment, and management has made airlines in the U.S. among the best in the world
Airlines carry all kinds of freight with great speed
The safest way to travel for passengers

13. The Highway System
Automobiles are the leading means of transportation in the U.S.
Carry over 80% of passengers
Nearly 150 million cars are registered in the U.S. (about 1 vehicle for every 2 people)
Highway system began construction under the Eisenhower administration
Rapid highway transportation depends on good rods and infrastructure
Heavy traffic on highways has caused major problems
Pollution, traffic accidents, increased reliance on fossil fuels

14. Mass Marketing
Selling goods in large quantities is called mass marketing
Large-scale selling and self-service
Standard packaging means goods come from factories/producers already packaged or wrapped
Less time spent having to weigh or measure items for consumers
One-price system is where prices are stamped or bar-coded onto products
Saves time by not having to key in prices or bargain with customers about price
Bar code technology collects information about products, and helps managers keep track of inventory

15. Wholesalers & Retailers
A factory sells goods in large quantities to a wholesalers
Also called distributors- they link the factory and the retailer
Chain stores, large department stores, and grocery stores often have their own warehouses and don’t need a separate wholesaler
Wholesalers then sell these goods to retailers
Retailers then sell the goods to the public

16. Advertising
Advertising informs people about products and tries to persuade them to buy these products
Because of competition, advertising often makes the difference between the success of one product and the failure of another
National advertising makes it possible to distribute your goods/services nationwide
This helps in the recognition of brand-name products
Advertising can sometimes mislead or outright lie to consumers
Still a useful way for producers to inform the public about their products

17. ? What is GDP and what is it used for?
List and describe the three main ideas Eli Whitney came up with for mass production.
How have businesses’ and industries’ use of power changed over the course of U.S. history?
What is the assembly line?
How is profit motive an important incentive to keep the economy up and running?
What is the definition of distribution?
What are some positive effects of the highway system? What are some negative effects?
What are two ways in which mass marketing has changed over time?
What’s the difference between wholesalers and retailers?
What is advertising? Why do producers try to advertise their products?